chapter 1 bcfsa Flashcards
Which of the following statements concerning disclosure statements in British Columbia is FALSE?
- A disclosure statement must be provided by a developer to a buyer where an offer of sale or lease relates to a time share interest in a development unit.
- A disclosure statement must indicate that the purchaser has the right to rescind the purchase agreement by serving written notice of the rescission on the developer.
- A disclosure statement must be in the form and include the content required by the British Columbia Financial Services Authority.
- One of the supporting documents which must accompany the disclosure statement is a certificate from a lawyer who is a member of the Law Society of British Columbia confirming that a true copy of the disclosure statement will be delivered to the prospective purchaser or lessee.
Correct Answer: 4
A disclosure statement must be in the form required by BCFSA but it need not contain a certificate from a lawyer. The other options are all true.
Which of the following statements is FALSE with respect to the British Columbia Financial Services Authority (BCFSA)?
- BCFSA has the authority to develop and amend the REALTOR®Code respecting ethical standards.
- In fulfilling its duties under theReal Estate Services Act, BCFSA may refuse to issue a license to an unqualified applicant.
- As part of determining whether an applicant for a licence is of a “good reputation”, BCFSA requires applicants to submit an original criminal record check.
- One of BCFSA’s powers is to impose administrative penalties on licensees who have contravened theReal Estate Services Act.
Correct Answer: 1
While BCFSA has the responsibility of making rules (known as theReal Estate Services Rules) that it considers necessary or advisable respecting licensing, or regulating licensees in relation to the provision of real estate services, it is the Canadian Real Estate Association that has the authority to develop and amend the REALTOR® Code. Options (2), (3), and (4) are all true statements.
Which of the following statements is FALSE with respect to the British Columbia Financial Services Authority (BCFSA)?
- BCFSA has the authority to develop and amend the REALTOR®Code respecting ethical standards.
- In fulfilling its duties under theReal Estate Services Act, BCFSA may refuse to issue a license to an unqualified applicant.
- As part of determining whether an applicant for a licence is of a “good reputation”, BCFSA requires applicants to submit an original criminal record check.
- One of BCFSA’s powers is to impose administrative penalties on licensees who have contravened theReal Estate Services Act.
Correct Answer: 1
While BCFSA has the responsibility of making rules (known as theReal Estate Services Rules) that it considers necessary or advisable respecting licensing, or regulating licensees in relation to the provision of real estate services, it is the Canadian Real Estate Association that has the authority to develop and amend the REALTOR® Code. Options (2), (3), and (4) are all true statements.
Under theReal Estate Services Act, disciplinary action against a licensee normally begins with an investigation by the British Columbia Financial Services Authority (BCFSA). Which of the following statements concerning an investigation to determine if disciplinary action should be taken against a licensee is TRUE?
a. BCFSA may conduct an investigation to determine whether a licensee may have committed professional misconduct or conduct unbecoming a licensee.
b. BCFSA can conduct an investigation only at the request of the Superintendent of Real Estate.
c. At any time during business hours, BCFSA can inspect the records that are located on the business premises of a licensee.
d. BCFSA may only conduct an investigation if it has received a written complaint.
- A, B, and C only
- A and C only
- B and D only
- All of the above
Correct Answer: 2
TheReal Estate Services Actpermits the British Columbia Financial Services Authority (BCFSA) to conduct an investigation to determine whether a licensee has committed professional misconduct or conduct unbecoming a licensee. Such investigations can be initiated on BCFSA’s own initiative or on receipt of a complaint. For the purposes of an investigation, the Act authorizes BCFSA to inspect the records kept on the licensee’s business premises at any time during business hours.
Under theReal Estate Services Act, disciplinary action against a licensee normally begins with an investigation by the British Columbia Financial Services Authority (BCFSA). Which of the following statements concerning an investigation to determine if disciplinary action should be taken against a licensee is TRUE?
a. BCFSA may conduct an investigation to determine whether a licensee may have committed professional misconduct or conduct unbecoming a licensee.
b. BCFSA can conduct an investigation only at the request of the Superintendent of Real Estate.
c. At any time during business hours, BCFSA can inspect the records that are located on the business premises of a licensee.
d. BCFSA may only conduct an investigation if it has received a written complaint.
- A, B, and C only
- A and C only
- B and D only
- All of the above
Correct Answer: 2
TheReal Estate Services Actpermits the British Columbia Financial Services Authority (BCFSA) to conduct an investigation to determine whether a licensee has committed professional misconduct or conduct unbecoming a licensee. Such investigations can be initiated on BCFSA’s own initiative or on receipt of a complaint. For the purposes of an investigation, the Act authorizes BCFSA to inspect the records kept on the licensee’s business premises at any time during business hours.
Which of the following is an aim of theReal Estate Services Act?
- TheReal Estate Services Actaims to ensure that real estate licensees are reasonably competent in providing real estate services.
- TheReal Estate Services Actaims to ensure that real estate licensees are of good reputation.
- TheReal Estate Services Actaims to discipline and, where necessary, re-educate real estate licensees if they breach the provi¬sions of the Act.
- All of the above are aims of theReal Estate Services Act.
Correct Answer: 4
The overall purpose of the Act is to protect the public and this is achieved in two ways. First, the Act ensures that people wanting to enter the real estate profession (that is, to obtain a real estate licence) must have particular knowledge and be of good character. Second, to ensure that the licensees remain competent, the Act provides disciplinary options to BCFSA for a licensee’s failure to live up to certain standards of performance and ethics. These options include the possibility of an order to take further education or training.
Which of the following is TRUE with respect to the Real Estate Errors and Omissions Indemnity Plan?
1.The key purposes of the Indemnity Plan are to provide an affordable method of protecting licensees from financial loss due to errors and omissions and reduce the risk that a consumer suffering a loss as the result of a licensee’s error(s) or omission(s) will receive no compensation due to the licensee’s lack of funds.
- The Indemnity Plan will cover a licensee’s liability up to a limit of $3 million.
- The Indemnity Plan requires the Real Estate Errors and Omissions Insurance Corporation to obtain the consent of the licensee in order to settle a claim involving that licensee.
- The Indemnity Plan will cover disciplinary fines imposed by BCFSA up to a limit of $2 million.
Correct Answer: 1
Option (2) is false because the Indemnity Plan will cover a licensee’s liability up to a limit of $2 million. Option (3) is false because the Real Estate Errors and Omissions Insurance Corporation has the right to settle a claim without the consent of the licensee. Option (4) is false because the Indemnity Plan does not provide coverage for any fines, sanctions, or penalties imposed on a licensee by BCFSA.
