Chapter 1 - Legal System And The Real Estate Industry

Question 1

In most cases, a person who works facilitating transactions in real estate in Canada must be currently licensed. Provincial real estate licensing legislation generally contains exemptions from this basic rule. Which of the following is NOT an example of an exemption typically found in provincial real estate legislation?

1. An individual selling property on his or her own behalf or on behalf of a relative from whom no payment of any kind is to be received.
2. A person who is employed full time on salary by a licensed developer and who sells only the developer’s real estate.
3. An executor selling the property of the deceased as provided by the will.
4. A family law lawyer who arranges a sale of a property for a neighbour and receives, in addition to legal fees, a commission of 5% of the sale price.

Answer 1

4. A family law lawyer who arranges a sale of a property for a neighbour and receives, in addition to legal fees, a commission of 5% of the sale price.

Question 2

Which of the following is NOT a general objective of a Real Estate Board?

1. Enhancement of the reputation of members of the real estate industry.
2. Participation in the legislative processes affecting the real estate industry.
3. Ongoing reassessment of commission rates according to changes within the real estate industry.
4. Maintaining Multiple Listing Services for use by their memebers.

Answer 2

3. Ongoing reassessment of commission rates according to changes within the real estate industry.

Question 3

After purchasing her fourth car, Diana decides it is time to build a new garage. Although not a construction professional, Diana is handy with tools and decides to design and build the garage herself. after many months and at great expense, Diana finishes her work and invites her next-door neighbour Andrew over to admire her new pink barn-shaped garage. Andrew thinks the garage is unsightly and demands that Diana tear it down. Diana, of course, refuses. That night, Andrew his car through Diana’s garage and destroys her months of hard work. Diana sues Andrew. She succeeds and the court awards her $80,000 in damages. Andrew feels the decision of the court is unfair. He refuses to pay Diana one cent. Diana may take which one of the following steps?

1. Diana can send a writ of execution to Andrew and then personally seize and sell enough of his property to pay the judgement.
2. Diana can apply to have a garnishing order served on Andrew’s employer ordering the employer to pay all Andrew’s wages directly paid out to her.
3. Diana can register her judgement in the land title office and apply to the court for a judicial sale of Andrew’s property, and after payment of prior charges, the proceeds will go towards paying the judgement to Diana.
4. Diana may do all of the above.

Answer 3

3. Diana can register her judgement in the land title office and apply to the court for a judicial sale of Andrew’s property, and after payment of prior charges, the proceeds will go towards paying the judgement to Diana.

Question 4

An examination for discovery:

1. usually takes place before the notice of civil claim is filed so that a person can ascertain whether a cause of action exists.
2. may be a major factor in the settlement of a dispute.
3. takes place before a judge, with all parties giving evidence under oath.
4. involves all of the above

Answer 4

2. may be a major factor in the settlement of a dispute.

Question 5

Xavier has successfully sued Yolanda in provincial Supreme Court. The court has ordered Yolanda to pay court costs. Which of the following statements is FALSE?

1. Court costs are always awarded against unsuccessful litigants like Yolanda.
2. Court costs will cover some of Xavier’s legal fees.
3. If the provincial Court of Appeal allowed an appeal by Yolanda, Xavier might have to pay the court costs of both courts.

Answer 5

1. Court costs are always awarded against unsuccessful litigants like Yolanda.

Question 6

During which one of the stages of the trial process does the defendant present the plaintiff with a response to civil claim denying some or all of the claims set out in the plaintiff’s notice of civil claim?

1. Pleadings
2. Discovery
3. Commencing the action
4. Trial

Answer 6

1. Pleadings

Question 7

Which of the following is true about the principle of stare decisis?

A. It has been eliminated by statue.

B. It provides a way for the law to develop.

C. It helps ensure consistency in court decisions.

D. Courts are only bound by decisions of courts that are the same level or higher.

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

Answer 7

3. B, C, and D only

Question 8

Which of the following statements is correct?

1. In all provinces, private disputes are settled under the common law system.
2. Although originally separate, common law and equity now together form the “common law”.
3. Litigants can choose whether they want their case decided in an equitable or common law court.
4. Private law always involves a government actor.

Answer 8

2. Although originally separate, common law and equity now together form the “common law”.

Question 9

Which of the following would be prohibited by the Canadian Charter of Rights and Freedoms?

1. The City of Halifax passing a bylaw which discriminates on the basis of religion.
2. A sole proprietor refusing to hire an old lady due to her age and disability.
3. A corporation refusing to do business with a United States customer.
4. A club refusing to allow women in the car.

Answer 9

1. The City of Halifax passing a bylaw which discriminates on the basis of religion.

Note - the Canadian Charter of Rights and Freedoms applies to Federal jurisdiction with the Human Rights Code applying to Private Businesses or Clubs.

Question 10

In Canada:

1. the federal government can bring in legislation which overrules provincial legislation.
2. the provincial governments can bring in legislation which overrules the federal government.
3. if there is a dispute as to which government can legislate in an area, the courts can determine which government has jurisdiction over the matter.
4. the courts can override the federal constitution.

Answer 10

3. if there is a dispute as to which government can legislate in an area, the courts can determine which government has jurisdiction over the matter.

Question 11

Which of the following statements is false?

1. A major concern of a provincial Real Estate Act is protection of the public.
2. Most provinces provide optional insurance for real estate sales licensees.
3. A senior licensee in most provinces is called either an agent or a broker.
4. The Canadian Real Estate Association cannot take a licensee to court (start an action) in a criminal matter.

Answer 11

2. Most provinces provide optional insurance for real estate sales licensees.

Question 12

Who is responsible for arbitrating disputes between members of a Real Estate Board?

1. The Canadian Real Estate Association
2. The Superintendent of Real Estate
3. The Real Estate Board
4. The real estate agencies involved in the dispute

Answer 12

3. The Real Estate Board

Question 13

Which of the following statements concerning the equitable jurisdiction of the court is/are TRUE?

A. The rules of equity developed as a response to the rigidity of the common law in England.

B. Where the rules of equity and common law conflict, the court will apply the common law rule.

C. Equitable remedies are available to parties in a court action as a right, regardless of their conduct.

D. Specific performance, injunctions and legal damages are three types of equitable remedies.

1. A, B and D only
2. B and C only
3. A only
4. All of the above statements are true

Answer 13

3. A only

Question 14

Which one of the following statements is FALSE?

1. The doctrine of precedent provides uniformity to the common law system.
2. The Supreme Court of Canada is not required to hear all appeals.
3. A provincial Supreme Court may exercise both common law and equitable jurisdiction.
4. An appeal by a taxpayer to reduce a tax assessment would fall within the sphere of private law.

Answer 14

4. An appeal by a taxpayer to reduce a tax assessment would fall within the sphere of private law.

Question 15

If a plaintiff wishes to start a court action:

A. they must ensure they have brought the claim within the limitation period.

B. court costs may be awarded against them if they reject a reasonable offer to settle from the defendant.

C. they must commence the action in the correct court.

D. they will be required to prepare written pleadings for a civil case.

Which of the statements above are TRUE?

1. A and B only
2. C and D only
3. B, C and D only
4. All of the statements are true.

Answer 15

4. All of the statements are true.

Question 16

Which of the following is NOT a possible meaning of the term “common law”?

1. The law created by the courts as opposed to statute law.
2. The principles derived from the common law courts in England as opposed to the principles derived from the courts of Chancery.
3. The laws created by the federal government in accordance with its power under the Constitution.
4. The system of law which relies upon the principle of stare decisis for its development.

Answer 16

3. The laws created by the federal government in accordance with its power under the Constitution.

Question 17

In Canada, the power to make laws is divided between the federal and provincial levels of government. Which of the following have been assigned to the federal government?

A. Jurisdiction over designing the new twenty dollar bill.

B. Jurisdiction over the regulation of banking.

C. Jurisdiction over matters affecting private property and the power to delegate some provincial authority to a third level of government.

D. Jurisdiction over the military.

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

Answer 17

2. A, B and D only

Question 18

When a judge “distinguishes” a case on its facts, this means:

1. the judge decides that facts crucial to a former decision are not present in the case at hand and does not follow the former decision.
2. the judge formally reports the case before him or her because it is a crucial decision.
3. the judge follows a former decision because the same facts exist in the case which is being decided.
4. None of the above.

Answer 18

1. the judge decides that facts crucial to a former decision are not present in the case at hand and does not follow the former decision.

Question 19

Where there is statue law regarding a particular legal issue:

1. case law on point is binding due to stare decisis.
2. a judge may choose not to interpret and apply the statue.
3. the statue law will typically be enforced over the previously applicable case law.
4. a judge will only enforce the sections of the statute that are aligned with prevailing case law.

Answer 19

3. the statue law will typically be enforced over the previously applicable case law.

Question 20

When commencing a lawsuit in Small Claims Court, the plaintiff may originate the action in the jurisdiction where:

1. either the plaintiff resides of the defendant resides.
2. the plaintiff resides.
3. either the cause of action arose or the defendant resides.
4. either the plaintiff resides or the cause of action arose.

Answer 20

3. either the cause of action arose or the defendant resides.