chapter 2 Flashcards
brokerages are seperated by…
location
so you might work for remax, but remax surrey and remax langley are two different things
what is the level above the brokerage?
managing broker
who owns the listing or the buyer that the real estate agent brings to the table, the agent or the brokerage?
the brokerage
who is a managing broker?
a licensee who is responsible for the brokerage, has control, and conducts & supervises agents
what are the responsibilities or the managing broker
managing a brokerage
exercises rights conferred on the brokerage
control and conduct of the brokerages real estate
supervision of its relate licensees
can a brokerage fire an agent
yes!
do you need to be Canadian to become a licensed managing broker?
no
can you work for multiple brokerages
no, can only work for one brokerage at a time
are you allowed to accept gifts from clients
no, it has to be given to the brokerage who can then give it to you if they want, otherwise considered secret profit which you are not allowed to do
the requirement in BC that a real estate agent must possess a license is set out by
- the common law
- the federal law
- provincial statute
- the real estate council of BC
- provincial statute
what are the 3 real estate services (under the RESA?)
- trading services: selling/buying, open houses, finding properties(this is what real estate agents do)
- rental property management services: collecting rents, negotiating, making payments, collecting strata fees
- strata management services: managing on behalf on the owner (making payments, negotiating, supervising contractors, managing tenant matters)
services are provided on behalf of your brokerage(clients, buyers, sellers, belong to your office)
which of the following are the three categories of real estate services, as defined in the real estate service act?
- licensing services, brokeerage services, agency services
- rental property management services, strata management services, trading services
- strata management services, trading services, brokerage services
- brokerage services, trading sercies, licensing services
- rental property management services, strata management services, trading services
which of the following are general guidlines the real estate council of BC follows with respect to teams and team names
a. licensed team members can be licensed by different brokerages
b. licensed team members must advise the council in writing, when any team member leaves the team
c. no team name will be approved that is identical to an existing, approved team name
d. unlicensed team members who appear in the team advertising do not have to be identified as unlicensed
1. only and A and C are true
2. only A and D are true
3. Only B and C are true
4. Only B,C and D are true
- Only B and C are true
b. licensed team members must advise the council in writing, when any team member leaves the team
c. no team name will be approved that is identical to an existing, approved team name
according to the RESA and regulations, which of the following statements is true?
- an individual may commence trading in real estate immediately after receiving proof of passing the real estate licensing exam
- all staff employed by a real estate brokerage must be registered with the real estate council
- an individual may be registered independently as a real estate representative without being employed by a a registered real estate brokerage
- a real estate representative is employed by his or her brokerage to trade in real estate in the brokerages name, on behalf of the brokerages clients
- a real estate representative is employed by his or her brokerage to trade in real estate in the brokerages name, on behalf of the brokerages clients
note, for answer 2, not all people that work at brokerage are agents, some are admin staff and they are not required to register with the real estate council
to qualify for a managing brokers license in B.C., a person must meet which of the following requirements?
- submit personal financial statements for each licensee they intend to hire
- be of good reputation
- three years license experience in British Columbia
- all of the above are requirements for a managing brokers license
- be of good reputation
- managing broker only needs 2 years of experience as we know
which of the following is NOT a real estate service under the real estate service act
- constructing a commercial office building in prince George for an owner who lives in b.c.
- collecting rents from tenants in a residential building in Burnaby for an owner who lives in Singapore
- selling a Penticton property for an owner who lives in Victoria
- assisting in the sales of a condominium unit located in Vancouver but owned by a person who lives in Calgary
- constructing a commercial office building in prince George for an owner who lives in b.c.
this is not real estate, it is property development
who’s duty is it to enforce the code of ethics
- british columbia real estate association
- local real estate boards
- real estate council of bc
- real estate council of british columbia
- local real estate boards
Catherine’s husband Joe has just been notified he has only a few months left to live. Joe has instructed his lawyer to create a life estate for Catherine on the ranch they share. Upon Catherine’s death, fee simple to the property is to go to his daughter Bonnie from a former marriage. In legal terms Bonnie’s interest is known as:
- that of a reversioner
- the remainderman
- ratification
- inheritor
- the remainderman
- Under the Torrens system, the principle of indefeasibility means:
- there is no need to investigate how the registered owner’s name got on title if a person is dealing with the registered owner in good faith.
- In BC, a person’s name may be omitted by using “in trust” instead.
- It is not necessary to give the registrar at land title prior notice to registering a fee simple interest.
- It is the purchaser’s responsibility to learn of all unregistered interests.
- there is no need to investigate how the registered owner’s name got on title if a person is dealing with the registered owner in good faith.
- Charlie, Chief Account and Operations Manager of Chemical Free Tar Sands Inc. has just received an e-mail from the company president in Edmonton instructing him to release pent up gases being held in air tight chambers at their Kelowna gas plant. The president, himself a chemist, is well aware that the gases are highly toxic. However, he has assured Charlie that the gases are harmless and will quickly dissipate especially if they are released at midnight when there will be less people around to breathe in the fumes. Unfortunately, not all the fumes
immediately burst out of the chamber when Charlie opened the release valve. Some of the gases stayed around and slowly drifted over onto Sanchez’s avocado plantation killing all the trees and destroying the crop.
Of the following which is TRUE?
- The courts will uphold Sanchez’s claim of trespass against Chemical Free Tar Sands Inc.
- The courts will uphold Sanchez’s claim of negligence against Chemical Free Tar Sands Inc.
- The courts will uphold Sanchez’s claim of nuisance against Chemical Free Tar Sands Inc.
- The courts will uphold Sanchez’s claim against Chemical Free Tar Sands Inc. based on the Occupiers Liability Act
- The courts will uphold Sanchez’s claim of negligence against Chemical Free Tar Sands Inc.
- Todd has a mailbox business that he leases from the Bentall Centre. Marcia, has rented the back room from Todd for 9 years to do her tailoring business. They
have an oral agreement that Marcia will only be on the premises after 6 pm on week days. Todd has been collecting $500 a month rent from Marcia. Todd has sold his business and needs to know what his legal obligations are to Marcia. You advise Todd that: - Six months notice is reasonable notice according to the Commercial Tenancy Act.
- Marcia is out of luck because she did not have a legal written agreement filed at Land Titles as a tenant.
- Marcia only has a license with Todd to conduct her business which is not enforceable and Todd owes her no compensation.
- The Real Estate Services Act requires Todd to compensate Marcia for 2 months rent.
- Marcia only has a license with Todd to conduct her business which is not enforceable and Todd owes her no compensation.
If a fee simple owner has lost their contractual right to redeem their mortgage:
the mortgage property must be vacated at the lender’s discretion.
the lender becomes the fee simple owner of the property.
there still exists an equitable right to redeem.
the mortgage becomes due and payable at a higher rate of interest.
there still exists an equitable right to redeem.
How would you explain what an assessment notice is?
The total taxes due and payable on a property.
The annual notice sent out once a year to homeowners setting the date for the assessor’s visit to appraise their property.
It is an extract from the assessment roll in regards to a particular property.
It is the amount the property owner is assessed each year for roads and municipal utilities in their subdivision.
It is an extract from the assessment roll in regards to a particular property.
- You are set to inherit Granny’s house in Cranbrook, but upon visiting the place you discover that when you open the front door you are in the master bedroom. This is an example of:
In today’s market a serious design deficiency and a good reason purchasers would not buy.
In appraisal terms this is known as functional depreciation.
A patent defect.
All the answers above are valid.
In appraisal terms this is known as functional depreciation.
under the regulations to the RESA certain categories of presons are exempted from the licensing requirements contain in the act. which of the following is NOT covered by an expemption under section 2.
- an executive with hudson bay company selling a neighbors hoouse for a flat fee
- an individual providing a property inspection
- accountaints in relation to the purchase and sales of a business
- a full time salaried employee of mega land company selling houses in a 3000 house tract developed by mega land company
- an executive with hudson bay company selling a neighbors hoouse for a flat fee
notice the other 3 options are not people that are real estate license
according to the real estate service act, which statement is false?
- a brokerage must have a managing broker
- when using a license, the real estate council may impose restrictions of the licensees license
- an individual may be registered independantly as a real estate representative without being employed by a real estate brokerage
- a real estate representative is engaged by his or her brokerage to trade in real estate services in the brokerages name, of the brokerage clients
- an individual may be registered independantly as a real estate representative without being employed by a real estate brokerage
real estate act aims:
to ensure that real estate licensees are reasonably competent
to ensure the real estate licensees are of good reputation
to disclipline and where neccessary, re educate real estate licensees if they breach the provisions of the act
real estate foundation is in charge of
real estate law reform
which of the following is NOT a power or duty of the real estate council
- levy fees on all license inn order to meet the councils expensies
- holding disciplinary hearings
- collecting premiums and assesements form licensees on behalf of the real estate errors and ommisions insurance corporation
- undertaking and carrying out real estate law remore to promote the interests of real estate proffesionals
- undertaking and carrying out real estate law reform to promote the interests of real estate professionals
the real estate foundation is responsible for law reform!!!
which of the following is FALSE regarding the real estate council’s power to investigate?
- investigate a licensee if they suspected that he or she has contravened any of the rules
- conduct an investigation to determine whether a licensee has committed a crime before becoming a licensee
- permission from the court before a beginning investigation
- investigation into licensee conduct whether or not it has breached the restriciton or condition of a license
- permission from the court before a beginning investigation
the real estate errors and omissions insurance corporation documents that set out the insurance coverage and exclusions for real estate licensees in bc as known as the
- insurance rider
- indemnity plan
- insurance contract
- features sheet
- indemnity plan
bcrea(british columbia real estate association) voluntary organization that gives us?
the MLS (where we list propertys and do research)
the Real estate council is NOT responsible for which one of the following
- holding hearings to investigate the conduct of licensees
- making bylaws that establish the information required on a license application
- enforcing the provisions of the code of ethics
- providing for an educational programs for licensees
- enforcing the provisions of the code of ethics
bcrea(mom) board does the code of ethics!!
which of the following among the duties and powers of the real estate council?
- establishing a fun for the use of the real estate foundation
- supervising the educational qualification of the licensees
- undertaking public education on real estate law reform
- advancing the interest of real estate licensees
- supervising the educational qualification of the licensees
what is REDMA and what do they do
real estate development marketing act
they must disclose everything bylaws etc involved with a property before buyer signs contract
assuming a real estate developer is not exempt from the disclosure statement requirements under the real estate development and marketing act, which of the following obligations must the developer fulfill
- the developer must provide a copy of the disclosure statements to both the superintendant of real estate agents
- the developer must inform the purchaser of his right to rescind the purchase agreement by serving written notice on he developer within 30 days after the date of the purchase agreement
- the developer must have the purcahse price of a development property approved by the superintendent of REA estate before entering into a purchase agreement
- the developer must fullfill all of the above obligations
- the developer must provide a copy of the disclosure statements to both the superintendant of real estate agents
answer 2 and 3 are false!!
