13

Question 1

Which of the following statements regarding digital signatures is FALSE?

1.
1. The purpose of a digital signature is to authenticate or guarantee that the individual sending the message really is who he claims to be
2.
2. A digital signature uniquely identifies the sender by including a picture file of the sender’s written signature
3.
3. To be effective, digital signatures must be “unforgeable”
4.
4. Digital signatures are used to authenticate the individual sending the message so as to ensure the integrity of the data

Answer 1

2. A digital signature uniquely identifies the sender by including a picture file of the sender’s written signature

Question 2

2. Question
   The ‘term of a mortgage ALWAYS:

1.
equals the amortization period
2.
necessitates the payment of an outstanding balance payment
3.
specifies the duration of the contractual relationship
4.
lowers the amount of the monthly payment

Answer 2

3.

specifies the duration of the contractual relationship

Question 3

The first place of setting a dispute through the Civil Resolution Tribunal (CRT) is typically:

1.
1. facilitation, where CRT staff assist the parties in attempting to reach a settlement
2.
negotiation, where the parties communicate online in an effort to settle the dispute
3.
adjudication, where an adjudicator makes a decision that is enforceable by the courts
4.
arbitration, where an independent arbitrator makes a decision that is binding on the parties.

Answer 3

2.

negotiation, where the parties communicate online in an effort to settle the dispute

Question 4

Paul grants Luke, his agent, express authority to list his house but has not explicitly granted the right to show it to potential buyers. If Luke shows the house to a potential buyer, she would likely be acting on:

1.
apparent authority
2.
express authority
3.
agency by estoppel
4.
implied authority

Answer 4

implied authority

Question 5

Which of the following statements regarding special general meeting help by a strata corporation are TRUE?

A. notice of the meeting mailed 30 days prior to the meeting is sufficient notice

B. Verbal notice given 20 days prior to the meeting is sufficient notice

C. persons holding at least 20% of the strata corporation’s votes may demand in writing that the strata corporation hold a special general meeting

D. unlike annual general meetings, special general meetings do not requite notice.

1.
Only C and D
2.
Only A, B and C
3.
Only A and B
4.
Only A and C

Answer 5

4.

Only A and C

Question 6

Doug makes a written offer to Tim. Which of the following will NOT release Doug’s offer?

1.
Doug later discovers that Tim is illiterate
2.
Tim fails to accept the offer before the expiry of the time limit specified in the offer
3.
Tim makes a counter offer
4.
Doug revokes his offer to Tim via telephone

Answer 6

1.

Doug later discovers that Tim is illiterate

Question 7

Which of the following statements about manufactures homes is FALSE?

1.
A manufactured home is a structure providing residential accommodation that can be moved from one place to another regardless of whether or not it has wheels
2.
BC’s manufactured home registry is maintained by the Land Title Office
3.
A manufactured home must be registered under the Manufactured Homes Act if it is to be moved to a different location
4.
A manufactured home can be placed either on property owned by the individual that owns the manufactured home or on a pad in a manufactured home park.

Answer 7

2.

BC’s manufactured home registry is maintained by the Land Title Office

Question 8

The Competition Act does NOT explicitly address which of the following?

1.
Spam (mass distributed mail)
2.
Agreements of restraint of trade
3.
Price maintenance
4.
Misleading advertising

Answer 8

1.
Spam (mass distributed mail)
2.

Question 9

Which of the following is a privacy principle from the Personal Information Protection Act?

1.
Expand collection
2.
Restrict access
3.
Be open
4.
Identify the proposal

Answer 9

3.

Be open

Question 10

Which of the following statements about foreclosure of a mortgage is TRUE?

1.
Once the redemption period has expired, the petitioner may apply to have the property sold by way of a judicial sale, or the petitioner may apply for an order absolute.
2.
If a mortgagee who has acquired the title to a property by way of an order absolute sells the property for an amount in excess of the total mortgage debt, including the costs of the foreclosure proceedings, the mortgagee is required to pay the excess to the mortgagor
3.
After the granting of an order approving sale by the court, the mortgagee has no right to enforce the borrower’s personal covenant to pay.
4.
The right of foreclosure refers to the right of a mortgagee to apply to the court for an order setting the redemption period for a borrower in default

Answer 10

1.
Once the redemption period has expired, the petitioner may apply to have the property sold by way of a judicial sale, or the petitioner may apply for an order absolute.
2.

Question 11

When converting an existing building into a strata development, which of the following statements is TRUE?

1.
Conversion is only permitted for buildings that were previously used for residential purposes
2.
If the building was occupied by residential tenants, the developer does not have to comply with the Residential tenancy Act to terminate the tenancies of the existing tenants
3.
All municipalities in BC have a moratorium on conversions because of the scarcity of rental units
4.
A developer must first obtain the necessary approval from the local municipal council or regional board of the regional district, as the case may be.

Answer 11

4.
A developer must first obtain the necessary approval from the local municipal council or regional board of the regional district, as the case may be.

Question 12

Which of the following statements regarding generally accounting principles is TRUE?

1.
The fiscal year principle holds that once a business enterprise adopts one generally accepted accounting principle from a number of alternatives, that enterprise should follow the same principle in subsequent years.
2.
The consistency principle states that all accounting information should be reported on objectively determined and verifiable data
3.
The cost principle holds that when a business acquires an asset, the amount paid for the asset is the appropriate amount to record in the books of the enterprise.
4.
The matching principle states that expenses are always recorded when paid

Answer 12

3.
The cost principle holds that when a business acquires an asset, the amount paid for the asset is the appropriate amount to record in the books of the enterprise.

Question 13

Which of the following are purposes of a code of ethics EXCEPT:

1.
To set a standard of conduct reasonably expected of members of a certain profession.
2.
To provide guidelines to ensure that a given professional’s actions are both lawful and morally fair
3.
To provide a number of legal remedies that can be exercised by those wronged by a member of a given profession
4.
To ensure that the reputation of a given profession is upheld in the public’s eyes.

Answer 13

3.

To provide a number of legal remedies that can be exercised by those wronged by a member of a given profession

Question 14

Your client wants to purchase a house that is listed for $305,000. The bank’s appraiser estimates that the lending value of the property is $300,000. Your client’s annual gross income is $50,000 per year. The bank applies an 80% loan-to -value ratio and gross debt service ratio of 32%. Property taxes amount to $1,800 per year. Assume that the lender demands a 25 year amortization and monthly payments at a contract rate of J2 = 2.95%. The Bank of Canada posted rate is J2=5.25%. How much can you client borrow, given the stress borrower qualification rules for uninsured mortgages? Round the answer to the nearest $10

1.
$ 240,000
2.
$192,000
3.
$198,570
4.
$181,560

Answer 14

3.

$198,570

Question 15

Which of the following is a TRUE statement regarding the Code of Ethics ?

1.
the Code stresses that a Realtor’s highest duty is owed to his client regardless of the nature of the client’s instructions.
2.
The Code is a document that each Realtor may or may not choose to adopt in his practice
3.
The Code acts as an alternative to the Canadian real Estate association’s Standards of the Business Practice
4.
The Code includes the Golden Rule “ Do unto others as you would have them do unto you”

Answer 15

4.

The Code includes the Golden Rule “ Do unto others as you would have them do unto you”

Question 16

In which of the following scenarios has a valid acceptance occurred?

1.
Veronica sent Chris a letter in the mail asking him if he would like to buy a box of mangos for $10. Chris placed a reply letter in the mailbox agreeing to the sale.
2.
Veronica and Chris were on the telephone discussing the sale of mangoes. Chris offered Veronica $10 for a box of mangoes, but Chris’s cell phone battery died before he could hear Veronica‘s reply. Veronica wanted to accept his offer
3.
Veronica sent Chris a letter in the mail asking him if he would like to buy a box of mangos for $10. The letter stated that, if Chris is Interested, he should send her a letter by mail by 3 PM the next day. Chris sent an email to Veronica the next day at 1 PM agreeing to the sale
4.
Veronica emailed Chris asking him if he would like to buy a box of mangoes for $10. Chris has decided that he wants to accept this offer, however, he has yet to communicate this to Veronica

Answer 16

1.
Veronica sent Chris a letter in the mail asking him if he would like to buy a box of mangos for $10. Chris placed a reply letter in the mailbox agreeing to the sale.

Question 17

A long term conservative estimate of the value of the property pledged as security for a loan is know as

1.
1- The value to the owner
2.
2- The market value
3.
3- The lending value
4.
4- The mortgage value

Answer 17

3- The lending value

Question 18

In a real estate transaction , an item that is included in the purchase price that will remain with the property once the seller moves out is know as :

1.
chattel
2.
gratuity
3.
fixture
4.
deposit

Answer 18

3.

fixture

Question 19

When the original loan agreement between the lender and a seller of property is replaced by a new loan agreement between the lender and the buyer of the property for the mortgage debt, what legal concept occurred?

1.
assignment
2.
novation
3.
redemption
4.
foreclosure

Answer 19

2.

novation

Question 20

Which of the following statements about conditions and warranties is TRUE?

1.
only breaches of conditions allow the injured party to sue for damages
2.
only breaches of conditions allow the injured party to terminate the contract
3.
only breaches of warranties allow the injured party to terminate the contract
4.
only breaches of warranties allow the injured party to sue for damages

Answer 20

2.

only breaches of conditions allow the injured party to terminate the contract

Question 21

Which of the following events is MOST likely a trespass?

1.
Playing loud music late at night on a frequent basis
2.
Constructing a fence one meter into a neighbor’s property
3.
A factory emitting a dangerous smoke from its factory , which blows onto neighboring properties.
4.
A visitor to a home slipping on recently mopped floors.

Answer 21

2.

Constructing a fence one meter into a neighbor’s property

Question 22

STEVE is purchasing Paul’s home for $500,000. Annual property taxes are not yet due, but last year’s taxes were $2,000 and it’s is expected that they will remain the same this year. The adjustment date is March 1, Assume it’s NOT a leap year. How does the adjustment for the property taxes appear on the Steve and Paul’s statements of adjustments?

1.
A debit of $323.29 on Paul’s statement, and a credit of $323.29 on Steve’s statement
2.
A debit of $323.29 on Paul’s statement, and a debit of $1676.71 on Steve’s statement
3.
A credit of $323.29 on Paul’s statement, and a debit of $323.29 on Steve’s statement
4.
A credit of $1676.71 on Paul’s statement, and a debit of $323.29 on Steve’s statement.

Answer 22

1.

A debit of $323.29 on Paul’s statement, and a credit of $323.29 on Steve’s statement

Question 23

You have partially completed appraisal report that you need to fill in. The subject property has 4 bedrooms and 4 bathrooms. The house next door is similar in all respects except for the number of bedrooms and bathrooms. It sold for $534,000 and 3 bedrooms and 3 bathrooms. If the market value of a bedroom is $4500 and the market value of a bathroom is $5,000, this comparable will have to be adjusted for bedrooms and bathrooms by:

1.
\+$4500 and -$5000 respectively
2.
\+$4500 and $0 respectively
3.
-$4500 and -$5000 respectively
4.
\+$4500 and +$5000 respectively

Answer 23

4.

+$4500 and +$5000 respectively

Question 24

With respect to appraisal , which of the following statements is FALSE?

1.
The presence of a special purchaser in a sales transaction will greatly extend the range of possible bids
2.
The subject of an appraisal is the legal rights of the ownership vested in a certain piece of real estate
3.
The direct comparison approach is based on the market principle.
4.
An appraiser owes a duty of care to those persons who they can foresee are likely to take action based on the appraisal report.

Answer 24

3.

The direct comparison approach is based on the market principle.

Question 25

An investor is willing to sell his house for $296,000. He demands 24 monthly payments and payment of the outstanding balance in the amount of $275,000 with the 24th payment. He wishes to earn an effective annual rate of 10% on his money. What is the monthly payment required?

1.
$3,157.76
2.
$3,166.37
3.
$3,212.42
4.
$3,260.71

Answer 25

1.

$3,157.76

Question 26

The right of survivorship is associated with:

1.
easements
2.
restrictive covenants
3.
joint tenancies
4.
life estates

Answer 26

3.

joint tenancies

Question 27

Which one of the following is FALSE with respect to the proprietorship form of business?

1.
There is no legal separation of the assets of the business and the other assets of its owner.
2.
A proprietor must pay tax on his/her business income at corporate tax rates.
3.
The proprietor is personally liable for all debts incurred by the proprietorship.
4.
A proprietorship is terminated upon the death of the owner

Answer 27

2.

A proprietor must pay tax on his/her business income at corporate tax rates.

Question 28

You are trying to calculate the market value of an income-producing property. In order to determine the market value, however , you must find the yield of several comparable properties and determinate a market capitalization rate. The following information is for the recent sale of a similar income-producing property:

        Selling price                                        $864,000       

        Gross potential revenue                   $100,000 per annum

        Operating expenses                           $22,750 per annum.

        Market vacancy rate                           4%

        What is the yield on the sale of the comparable property?

1.
8.11722%
2.
8.47801%
3.
9.98964%
4.
8.94097%

Answer 28

8.47801%

Question 29

Three years ago, you bought a house at which time you arranged a mortgage in the amount of $520,000. The loan was written at a rate of a $4.75 per annum , compounded semi-annually , with a 5 year term, 25 year amortization period and monthly payments. You have just received an offer to buy your house. The offer is to provide $75,000 cash and to assume the existing financing for the remainder of the term. If current lending rates for 2 year term mortgages are $5.75% per annum , compounded semi-annually, what is the market value of the offer?

1.
$551,068.20
2.
$484,174.13
3.
$536,068.20
4.
544,174.13

Answer 29

1.

$551,068.20

Question 30

Which of the following is estimated using actual current rents paid on similar properties based on 100% occupancy?

1.
Gross potential revenue
2.
Gross realized revenue
3.
Effective gross income
4.
Net operating income

Answer 30

1.

Gross potential revenue

Question 31

Which of the following BEST describes the “strata corporation”?

1.
The collective group of individual strata lot owners once the strata plan has been deposited at the land title office
2.
a body of three to seven elected representatives from among the owners of the strata lots
3.
A corporation formed by a group of individuals who possess an undivided joint tenancy ownership interest in a single parcel of fee simple
4.
A group of professionals managers hired by a condominium project to handle the matters affecting the security and maintenance of the common property , facilities and assets of the condominium.

Answer 31

1.

The collective group of individual strata lot owners once the strata plan has been deposited at the land title office

Question 32

Which of the following is the key statute in British Columbia that governs housing cooperatives?

1.
the strata property act
2.
the cooperative association act
3.
the land title act
4.
the housing cooperative act

Answer 32

2.the cooperative association act

Question 33

Which of the following situations will result in common law duress?

1.
Jason is forced to enter into a contract to transfer his prized comic book collection against his will as a result of death threats to his wife.
2.
Jason is tricked into entering into a car financing agreement with a local car dealership by the salesman use of complicated and confusing terms relating to the obligations in the agreement.
3.
jason enters into a contract for the purchase of a bicycle from Trevor, but neither Jason nor Trevor are aware of the fact that the bicycle was stolen the night before.
4.
Jason breaches a fundamental term of a consulting agreement that he signed with a software company.

Answer 33

1.
Jason is forced to enter into a contract to transfer his prized comic book collection against his will as a result of death threats to his wife.

Question 34

Which of the following would MOST likely constitute a private nuisance?

1.
in autumn, some leaves from property A fall onto property B
2.
On a sunny Saturday afternoon, smoke from a barbecue drifts from property A onto property B
3.
In a busy industrial area, the vibrations from a manufacturing plant can be felt in the neighboring auto repair shop
4.
In a residential neighborhood, harmful chemicals used by the owner of property A on his vehicle frequently drain onto property B, causing substantial damage to trees and plants on property B.

Answer 34

4.
In a residential neighborhood, harmful chemicals used by the owner of property A on his vehicle frequently drain onto property B, causing substantial damage to trees and plants on property B.

Question 35

Mary and john own a piece of real property as joint tenants. Which of the following statements is TRUE?

1.
The joint tenancy will be severed if Mary sells her interest.
2.
Mary and john must each have an undivided interest in the whole of the property
3.
A joint tenancy depends of the existence of all four “unities”
4.
All of the above are true.

Answer 35

4.

All of the above are true.

Question 36

Given the following information, calculate the buyers balance due to complete:

        Price:                          $300,000

        Deposit paid to agent:    $45,000

        Financing                   1st mortgage of $64,000 to be assumed 2nnd mortgage of $99,000 has been arranged by the buyer

         Taxes:               Taxes in the amount of $1,600 are not due before completion.

   Conveyancing fees:   $900

Adjustment, Completion a and possession dates: May 31st.

                  Real estate commission:   4% sales price.

                    Note:  Its not a leap year.

1.
$92,242.47
2.
$11,238.08
3.
$92,900.00
4.
$104,242.47

Answer 36

1.

$92,242.47

Question 37

Which of the following is TRUE where a comparable property is sold subject to a vendor supplied mortgage at an interest rate lower then the current market rate:

1.
the comparable property may never be used as evidence of the market value
2.
the comparable sale price must be adjusted downward
3.
the comparable sale price may only be used as evidence of market value
4.
the comparable sale price must be adjusted upward

Answer 37

the comparable sale price must be adjusted downward

Question 38

With respect to the application of the environmental management act (EMA) to mortgages , which of the following is TRUE?

1.
lenders can face liability under the EMA if they become registered owners of the property as a result of a foreclosure.
2.
the EMA automatically makes a lender partially responsible for environmental contamination of a property if the lenders mortgage was registered on title at the time of the contamination.
3.
lenders can file a notice with EMA before providing mortgage proceeds directing the director of waste management to conduct an environmental assessment of the subject property
4.
the EMA has no application to mortgages

Answer 38

1.

lenders can face liability under the EMA if they become registered owners of the property as a result of a foreclosure.

Question 39

Which of the following items is NOT included in a form B information certificate?

1.
any court proceeding or arbitration in which the strata corporation is a party and any judgments or orders against the strata corporation.
2.
the certificate of title
3.
any amount by which the expenses of the strata corporation for the current fiscal year are expected to exceed the expenses budgeted for the fiscal year.
4.
the monthly strata fees payable by the owner

Answer 39

2.

the certificate of title

Question 40

A mortgage loan with a face value of $475,000 is arranged through a mortgages broker. A commission of $7,250 , appraisal fees of $425, as well as survey and legal fees totaling $600 will be deducted from a face value before the funds are advanced to the borrower. Calculate the cost of funds advanced to the borrower, expressed as an effective annual rate , if the loan is written at 5% per annum , compounded semi-annually , with monthly payments over a 25year amortization period and a 5 year term.

1.
5.344991%
2.
5.368399%
3.
5.502478%
4.
6.954952%

Answer 40

3.

5.502478%

Question 41

Jordan grants Mary a mortgage over his property, Blackacre. One of the terms in the standard mortgage contract that they execute allows Mary , aside from perusing a foreclosure, to exercise the remedies of an ordinary creditor if Jordan defaults. If Jordan defaults and Mary pursues this option , she will be taking action in the:

1.
order nisi.
2.
personal covenant
3.
collateral advantage
4.
priorities

Answer 41

2.

personal covenant

Question 42

How much should an investor be willing to pay for a property that he expects to sell for $825,000 in four years if he desires a yield of j2 =3%?

1.
$791,763.08
2.
$711,071.01
3.
$732,361.68
4.
$777,301.99

Answer 42

3.

$732,361.68

Question 43

Extending the amortization period of a loan to 30 years:

1.
results in larger mortgage payment for borrowers
2.
means that borrowers will make payment every two weeks instead of monthly, in order to reduce their interest cost.
3.
results in less interest paid by the borrower.
4.
means they repayment of principal is spread over a greater number of payments making each payment smaller.

Answer 43

4.

means they repayment of principal is spread over a greater number of payments making each payment smaller.

Question 44

In appraisal , and outdated feature that cannot be corrected economically is best known as :

1.
functional incurable depreciation
2.
functional curable depreciation
3.
physical incurable depreciation
4.
physical curable depreciation.

Answer 44

1.

functional incurable depreciation

Question 45

Which of the following is NOT required for a plaintiff to establish negligence?

1.
the defendant owed the plaintiff a duty of care
2.
the defendant intentionally injured the plaintiff
3.
the plaintiff suffered actual loss or damage
4.
the defendant breached the standard of care owed

Answer 45

2.

the defendant intentionally injured the plaintiff

Question 46

Jody owns two blue bicycles, a mountain bicycle and a road bicycle. Jody’s friend Bobby, in the market for a used road bicycle, offered to buy Jody’s “blue” bicycle for $300, which Jody accepted. Jody assumed that she was selling her mountain bicycle and when she delivered it to Bobby, he refused delivery, stating that the contract they made was for her road bicycle. Neither realized each other’s mistake until Jody had delivered the mountain bike to Bobby. Which of the following statements is TRUE?

1.
A mutual mistake has occurred, the result being that the contract is void.
2.
This is an example of an unconscionable transaction because both parties did not fully understand the terms of the contract.
3.
A unilateral mistake has occurred because Bobby’s offer to buy Jody’s blue bicycle was ambiguous and not precise.
4.
Since Bobby has not yet paid Jody, he is entitles to revoke his offer to Jody

Answer 46

1.

A mutual mistake has occurred, the result being that the contract is void.

Question 47

Which of the following is NOT a fiduciary duty that an agent owes to his principal (seller)?

1.
The duty of loyalty
2.
The duty to exercise reasonable care and skill
3.
The duty to carry out the lawful instructions of the principal
4.
The duty to indemnify the principal

Answer 47

4.

The duty to indemnify the principal

Question 48

The buyer has offered to purchase a house from a seller who is willing to provide partial financing. Her offer is a $75,000 down payment plus a mortgage of $342,000 at 4% per annum, compounded semi-annually. The loan is to be fully amortized with monthly payments over 20 years. What is the market value of this offer if the market rate for similar mortgage loans is 6.5% per annum, compounded semi-annually?

1.
$377,006.73
2.
$354,072.09
3.
$377,727.46
4.
$302,006.73

Answer 48

2.

$354,072.09

Question 49

Which of the following statements regarding the immobility and durability of land is FALSE?

1.
When considering the durability of structures, it is important to distinguish between the physical life and the economic life of the structure
2.
The physical durability of real property means that it has value as an investment and a source of shelter
3.
The immobility of real estate as a commodity allows it to be moved to a better market.
4.
Immobility is responsible for the local nature of real property markets.

Answer 49

3.

The immobility of real estate as a commodity allows it to be moved to a better market.

Question 50

You have come across a property that possesses latent value. What method of appraisal would be the most appropriate to appraise the subject property?

1.
The cost method
2.
The comparison method
3.
The income method
4.
The residual method

Answer 50

4.

The residual method

Question 51

In appraisal, highest and best use is based on the principle that the market value of property depends on:

1.
potential use rather than on current use alone
2.
the guaranteed replacement cost
3.
past use rather than on future use alone
4.
the wishes of the public at large

Answer 51

1.

potential use rather than on current use alone

Question 52

The process whereby a mortgage lender transfers his interest in a mortgage to a third party is known as :

1.
assumption
2.
take-back
3.
assignment
4.
foreclosure

Answer 52

3.

assignment

Question 53

Calculate the Quarterly periodic rate of interest that is equivalent to 12% per annum, compounded quarterly

1.
1%
2.
3%
3.
12.550%
4.
4%

Answer 53

2.

3%

Question 54

What will be the maximum loan (rounded to the nearest dollar) granted on a commercial building with the landing value of $4,250,000 and yielding a net operating income of $300,000 per year, where the lender requires a debt coverage ratio of 1.2 and a 70% loan-to-value ratio? The loan will be amortized over 20 years with annual payments and the interest rate of 7% per annum, compounded annually

1.
$2,437,500
2.
$2,648,504
3.
$3,107,425
4.
$2,975,000

Answer 54

2.

$2,648,504

Question 55

The shopping behavior model defines shopping goods as:

1.
goods that a consumer will not buy unless the see or hear about the good.
2.
Goods that possess some characteristic which causes the consumer to want that particular product or service
3.
Goods that a consumer purchases frequently and needs immediately
4.
Goods purchased by the consumer only after have made comparisons of competing goods or services on the basis of price, quality, style, colour and service quality.

Answer 55

4.
Goods purchased by the consumer only after have made comparisons of competing goods or services on the basis of price, quality, style, colour and service quality.

Question 56

On the balance sheet, long-term debt, such as a mortgage, would be classified under;

1.
current assets
2.
current liabilities
3.
non-current liabilities
4.
non-current assets

Answer 56

3.

non-current liabilities

Question 57

Which of the following documents is used to transfer a fee simple title in the land title office from the seller to the buyer?

1.
An income tax return
2.
A title search certificate
3.
A form A freehold Transfer
4.
A statement of adjustments for each of the buyer and seller

Answer 57

3.

A form A freehold Transfer

Question 58

Your client borrowed $260,000 by way of an interest accruing loan at J12= 4%

how much will your client owe at the end of nine months?

1.
$257,600.78
2.
$270,400.00
3.
$270,592.80
4.
$267,904.81

Answer 58

4.

$267,904.81

Question 59

A licensee who speaks poorly of another licensee in the public or publicly discredits another licensee is breaching the ethical duty of;

1.
professional courtesy and good faith
2.
respecting client relations
3.
confidentiality
4.
competence

Answer 59

1.

professional courtesy and good faith

Question 60

A mortgage loan has a face value of $400,000, an interest rate of J2 = 3%, an amortization period of 20 years, a term of 5 years, and an option to make accelerated biweekly payments, rounded up to the next higher dollar. If this option is exercised, what is the amount of the accelerated biweekly payment?

1.
$2,215.00
2.
$1,108.00
3.
$1,908.00
4.
$3,815.00

Answer 60

2.

$1,108.00

Question 61

Darren has an agency contract with Wesley that allows Wesley to buy cars on Darrens behalf. Specifically , the contract only authorizes. Wesley to buy collector cars that were made before 1960. One day , Wesley finds a a rare car made in the 1980s that he remembers Darren mentioning he would like to own, so Wesley buys the car on Darrens behalf. The vendor agrees to the sale and a contract is signed. Darrens is so pleased with the purchase that he immediately elects to complete the contract upon hearing the news from Wesley, Which of the following statement is TRUE?

1.
Wesley action was ratified by Darren
2.
Wesley authority to buy the car was created by implication.
3.
Darren and Wesley had an express contract for Wesley to buy the car.
4.
Wesley authority to buy the car was created by estoppel

Answer 61

1.

Wesley action was ratified by Darren

Question 62

In applying the cost method of appraisal to the valuation of a single family residence built forty years ago:

1.
the historic construction cost from forty years ago should be used to represent the costs of construction
2.
the current costs on a replacement basis should be used to represent the costs of construction
3.
the historic costs on a reproduction basis should be used to represent the costs of construction
4.
the exact costs incurred when the residence was built forty years ago should be used to represent the costs of construction

Answer 62

2.

the current costs on a replacement basis should be used to represent the costs of construction

Question 63

Which of the following interests in land do NOT require a dominant and servient tenement?

1.
easements
2.
life estates
3.
freehold estates
4.
profits a prendre

Answer 63

profits a prendre

Question 64

In the British Columbia land title system, if property is registered subject to a trust , it will be shown by :

1.
a caveat on the title
2.
a certificate pending trust on the title.
3.
a notation of trust on the title.
4.
a beneficiary notice of interest in trust on the title

Answer 64

3.

a notation of trust on the title.

Question 65

Your client are going to pay $350,000 for undeveloped land which they feel will sell at the end of 5 years for $435.000. What yield expressed as a nominal rate with semi-annual compounding , will your clients earn on their investment? Assume that these are the only cash flows for this investment.

1.
4.371978%
2.
4.395870%
3.
5.851265%
4.
4.444180%

Answer 65

2.

4.395870%

Question 66

All of the following fiduciary duties owed by a licensee to his or her client terminates at the end of the agency relationship EXCEPT:

1.
the duty of confidentiality
2.
the duty of full disclosure
3.
the duty to avoid conflicts of interest.
4.
the duty to obey lawful instructions.

Answer 66

1.

the duty of confidentiality

Question 67

April owns a strata unit in radical, a modern new strata development. Over the past 3 weeks , Ellis , Aprils neighbor has been practicing his trumpet in preparation for a big recital. April has pleaded with Ellis to stop practicing between 11pm and 7am. So that she can get her much needed sleep. But Ellis has refused. Aprils BEST next steep is to :

1.
seize Ellis trumped until he agrees to her demands
2.
contact the strata council at radical and voice her complaints.
3.
apply under the provisions of the strata property act to appoint an administrator for help with solving the dispute.
4.
bring court proceedings against Ellis for a mandatory injunction

Answer 67

3.

apply under the provisions of the strata property act to appoint an administrator for help with solving the dispute.

Question 68

Your friend is considering purchasing a property for two million dollars. He would like to finance the purchase with an interest only loan of $1.900,000, written at a contract rate of 5% per annum., compounded quarterly. If the term of the loan is ten years and payments are to be made at the end of each month, what will the amount of your friends third interested only payments be?

1.
$7,916.67
2.
$8,030.58
3.
$7,835.44
4.
$7,883.91

Answer 68

4.

$7,883.91

Question 69

Most of the following people is MOST LIKELY to be considered an “occupier” under the British Columbia occupiers liability act?

1.
A licensee hosting an open house for his clients’ property
2.
A university student who is visiting her aunts house for dinner
3.
A door to door salesman of vacuum cleaners.
4.
A landscape designer who tends to her clients lawns and gardens while they are at work.

Answer 69

1.

A licensee hosting an open house for his clients’ property

Question 70

Which of the following statements made during a recent discussion about corporations is TRUE?

1.
Individuals who acquire shares in a corporation own the assets of the corporation
2.
The shareholders of a corporation can be held responsible for more then their agreed share purchase
3.
A corporation whose shares are traded on a stock exchange is referred to as a public company
4.
A corporation will terminate on the death of its original shareholders

Answer 70

A corporation whose shares are traded on a stock exchange is referred to as a public company

Question 71

A borrower believes that he can make mortgage payments of $1,800 a month. He has arranged a mortgage loan in the amount of $194,000 with a 30 year amortization period and a term of two years. If the interest rate on the loan is 4.5% per annum , compounded quarterly , and the lender has agreed to let the borrower make payments of $1,800 per month , what will be the outstanding balance at the end of the term?

1.
$176,550.25
2.
$167,055.25
3.
$181,449.94
4.
$166,961.11

Answer 71

2.

$167,055.25

Question 72

Which of the following statements is TRUE?

1.
In a conflict between common law principles and equitable principles , common law principles will prevail.
2.
In a conflict between common law principles and statute law , common law principles will prevail
3.
In a conflict between equitable principles and statute law, statute law will prevail.
4.
None of the above are true.

Answer 72

3.

In a conflict between equitable principles and statute law, statute law will prevail.

Question 73

Which of the following actions does NOT facilitate the exchange process in a negotiation?

1.
Emphasizing the underlying interests and needs of each party.
2.
Determining both parties priorities
3.
Considering as many solution as possible.
4.
Focusing on , and dedicating significant time to , asserting and defending the positions of each party

Answer 73

4.

Focusing on , and dedicating significant time to , asserting and defending the positions of each party