Assignment 3 (Chapter 5)

Question 1

Vicarious Liability

Answer 1

Legal responsibility of an employer for the actions of an employee performed within the course of their employment.

Question 2

Negligent Misrepresentation

Answer 2

Providing false information without intent to deceive, but failing to exercise reasonable care or competence in obtaining or communicating the information.

Question 3

Fiduciary Duties

Answer 3

Obligations of loyalty and care that an agent owes to their principal, requiring them to act in the principal’s best interest.

Question 4

Duty of Care

Answer 4

The legal obligation to avoid causing harm and to act with a standard of care that a reasonably prudent person would in similar circumstances.

Question 5

Tort Law

Answer 5

The area of law that covers most civil suits, typically involving personal injury or property damage due to negligent or intentional acts.

Question 6

Contract Law

Answer 6

The body of law that governs legally binding agreements between parties, including the obligations and remedies associated with breaches of these agreements.

Question 7

Fraudulent Misrepresentation

Answer 7

Knowingly providing false information with the intent to deceive another party, leading to damages.

Question 8

Proceeds of Crime (Money Laundering) and Terrorist Financing Act

Answer 8

Canadian legislation aimed at detecting and deterring money laundering and terrorist financing activities, requiring reporting and identification measures from financial and real estate professionals.

Question 9

Know Your Client (KYC) Obligations

Answer 9

Requirements for financial and real estate professionals to verify the identity of their clients, understand their financial activities, and assess the risk of money laundering or terrorist financing.

Question 10

Large Cash Transaction Report

Answer 10

A report that must be filed when receiving $10,000 or more in cash in a single transaction or multiple transactions within 24 hours.

Question 11

Suspicious Transaction Report (STR)

Answer 11

A report filed when there are reasonable grounds to suspect that a transaction or attempted transaction is related to money laundering or terrorist financing.

Question 12

Reasonable Grounds to Suspect

Answer 12

A standard of belief based on factual context and indicators that a transaction is related to money laundering or terrorist financing.

Question 13

Beneficial Ownership

Answer 13

The natural person(s) who ultimately own, control, or benefit from a company or legal entity, typically defined as owning 25% or more of the shares.

Question 14

Duty to Disclose

Answer 14

The obligation of a real estate licensee to disclose all relevant information to their client, including any conflicts of interest or material facts about a property.

Question 15

Real Estate Services Act

Answer 15

Legislation governing the conduct of real estate professionals in British Columbia, including licensing requirements and disciplinary actions.

Question 16

Misrepresentation

Answer 16

False statements or omissions that can be innocent, negligent, or fraudulent, affecting the decisions of the other party.

Question 17

ML/TF Indicators

Answer 17

Red flags or warning signs that suggest potential money laundering or terrorist financing activities, such as unusual transaction patterns or client behavior.

Question 18

Reasonable Foreseeability

Answer 18

The concept that certain consequences can be anticipated as likely to occur from certain actions, used in determining negligence.

Question 19

Real Estate Prices and Money Laundering

Answer 19

The impact of illicit funds entering the real estate market, often driving up prices and creating market distortions.

Question 20

Dual Commission

Answer 20

The receipt of commissions from both the buyer and the seller in a real estate transaction, which requires full disclosure and agreement from all parties.