Chapter 2 Real Estate Services Act

Question 1

3. Which of the following is NOT a “real estate service” under the Real Estate Services Act?
   (1) Constructing a commercial office building in Prince George for an owner who lives in British
   Columbia
   (2) Collecting rents from tenants in a residential building in Burnaby for an owner who lives in
   Singapore
   (3) Selling a Penticton property for an owner who lives in Victoria
   (4) Assisting in the sale of a condominium unit located in Vancouver but owned by a person who lives
   in Calgary

Answer 1

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Question 2

Chadwick is the listing licensee for a house. According to the Real Estate Services Rules, Chadwick does
NOT need to provide his client, the seller, with a Disclosure of Interest in Trade form if the party making
the offer to purchase the house is:
(1) a corporation in which Chadwick holds 20% of the shares.
(2) Chadwick’s wife.
(3) Chadwick himself.
(4) Chadwick’s friend and tennis partner.

Answer 2

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Question 3

To qualify for a managing broker’s licence in British Columbia, a person must meet which of the
following requirements?
(1) Submit personal financial statements for each licensee they intend to hire
(2) Have provided real estate services within a Canadian province or the Yukon for two out of the five
years preceding the application
(3) Have three years’ licensed experience in British Columbia
(4) Be at least 29 years of age

Answer 3

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Question 4

Which of the following is NOT a power or duty of the BCFSA?
(1) Receiving licensing applications relating to real estate services
(2) Carrying out investigations and disciplinary functions in relation to licensees
(3) Making orders against unlicensed persons who provide real estate services without a licence
(4) Lobbying the provincial government to protect the interests of real estate professionals

Answer 4

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Question 5

A brokerage must maintain at least one account in a bank, trust company, or credit union designated as a
trust account into which the brokerage must put, upon receipt, all monies received for or on behalf of a
client. The Real Estate Services Act only permits the brokerage to withdraw money from such an account
under certain circumstances. Which one of the following is NOT one of them?
(1) Money paid to or in accordance with the instructions of the principal to whose credit the money was
deposited
(2) Money intended as remuneration for a licensee and that has been earned in accordance with the
Rules
(3) Money paid into the trust account by mistake
(4) Money required for payment of a brokerage’s business expenses

Answer 5

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Question 6

Which one of the following is NOT a qualification for a trading services representative’s licence in British
Columbia?
(1) Must have a minimum of three references from currently licensed managing or associate brokers
(2) Must have attained the age of 19 years
(3) Must be of good reputation
(4) Must have met the educational and experience requirements established by the Real Estate Services
Rules

Answer 6

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Question 7

A person appointed by a partnership or corporation that is licensed as a brokerage, to represent it for all
purposes under the Real Estate Services Act is referred to as:
(1) a brokerage.
(2) an associate broker.
(3) a managing broker.
(4) a director.

Answer 7

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Question 8

A person appointed by a partnership or corporation that is licensed as a brokerage, to represent it for all
purposes under the Real Estate Services Act is referred to as:
(1) a brokerage.
(2) an associate broker.
(3) a managing broker.
(4) a director.

Answer 8

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Question 9

Which of the following is required in order for a trading services representative to maintain their licence?
(1) The representative must be employed by an active brokerage at all times.
(2) The representative must be licensed as a personal real estate corporation.
(3) Each year, the representative must file a certificate signed by a chartered accountant certifying that
the representative’s books and records required by the Real Estate Services Act have been
maintained.
(4) The representative must file at least one real estate transaction with the British Columbia Financial
Services Authority each year.

Answer 9

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Question 10

Once a licensee has obtained a signed acceptance from Allan of an offer to sell real estate owned by Bob
and Carol jointly, the Real Estate Services Act requires the delivery of a copy of the agreement to:
(1) Allan and Bob.
(2) Allan, Bob, and Carol.
(3) Bob.
(4) Carol.

Answer 10

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Question 11

The relationship between a brokerage and its related licensees is recognized and reinforced by certain
provisions of the Real Estate Services Act (“RESA”). According to RESA:
(1) when a licensee advertises real estate on behalf of a client, the brokerage’s name must be displayed
in a prominent way.
(2) a licensee is entitled to advertise real estate on behalf of a client without the name of the listing
brokerage appearing in the advertisement, providing the licensee’s name is displayed in a
prominent way.
(3) when a property is listed by the seller’s brokerage and the buyer is represented by a different
brokerage, both the seller’s agent and the buyer’s agent are paid their commission directly from the
seller’s brokerage.
(4) real estate brokerages that charge only desk fees and pay 100% of the commission to their
representatives are not responsible for the actions of the representatives.

Answer 11

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Question 12

Which statute requires that a brokerage keep at least one trust account in a savings institution in British
Columbia?
(1) The Real Estate Services Act
(2) The British Columbia Property Manager’s Act
(3) The Bonding Act
(4) The Bank Act

Answer 12

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Question 13

A “real estate service” under the Real Estate Services Act includes:
(1) finding a party to acquire real estate.
(2) collecting rents or security deposits for the use of real estate.
(3) advising on the appropriate price for real estate.
(4) all of the above.

Answer 13

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Question 14

To qualify for a managing broker’s licence in British Columbia, a person must meet which of the
following requirements?
(1) Submit personal financial statements for each licensee they intend to hire
(2) Have provided real estate services within British Columbia or an equivalent jurisdiction for 2 out of
the 5 years preceding the application
(3) Have 3 years’ licensed experience in British Columbia
(4) All of the above

Answer 14

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Question 15

Alan recently assisted Peter in the sale of Peter’s house. What are the legal consequences of his doing so?
(1) Unless he is licensed, Alan has breached the Real Estate Services Act.
(2) If Alan is unlicensed, but performed the service without receiving or expecting any money or
reward, he has done nothing wrong.
(3) As long as Alan was not involved in the writing of the contract of purchase and sale, he may act for
Peter and receive money for it.
(4) If Alan is unlicensed, but he is Peter’s brother, Peter can pay him for the work and no breach has
occurred.

Answer 15

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Question 16

Where a licensee is personally involved in a real estate sale, which of the following is NOT a part of the
disclosure requirements under the Real Estate Services Act?
(1) The licensee must disclose that they, or an associated company or partnership, are purchasing the
property on their own behalf.
(2) The licensee must disclose that they, or an associated company or partnership, are selling their own
property.
(3) The licensee must disclose any other properties currently under consideration by the licensee.
(4) The licensee must make the required disclosure in writing, in the required form, prior to entering
into any agreement.

Answer 16

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Question 17

A real estate broker has listed a property for sale at a listing price of $100,000. The commission is agreed to
be based on the difference between the listed price and the actual sale price. The agreement is:
(1) contrary to the Real Estate Services Act.
(2) lawful if the agreement is reduced to writing and signed by both parties.
(3) specifically provided for as acceptable under the regulations to the Real Estate Services Act.
(4) lawful if the buyer agrees.

Answer 17

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Question 18

Under the Regulations to the Real Estate Services Act, certain categories of persons are exempted from the
licensing requirements contained in the Act. Which of the following is NOT covered by an exemption?
(1) A business executive selling a neighbour’s house for a flat fee
(2) An individual providing a property inspection
(3) Accountants in relation to the purchase and sale of a business
(4) A full-time salaried employee of Mega Land Company selling houses in a 3,000 house tract
developed by Mega Land Company

Answer 18

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Question 19

When a real estate licensee manages rental real estate owned by herself, the licensee:
(1) is exempt from the application of the Real Estate Services Act (RESA) if they provide rental property
management services under the name of their related brokerage.
(2) is always subject to RESA and the associated Real Estate Services Rules.
(3) should include the name of their related brokerage in any advertisements.
(4) must disclose to potential tenants that although they are licensed under RESA, they are not acting as
a licensee in this case and are not regulated under RESA in relation to the rental real estate.

Answer 19

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Question 20

Which of the following statements about trust accounts under the Real Estate Services Act is FALSE?
(1) A brokerage must have a trust account for each client.
(2) All client funds must be placed in a trust account as soon as they are received by the brokerage.
(3) Money paid by mistake into trust may be withdrawn from the trust account.
(4) Money paid for expenses incurred on behalf of a client and according to the client’s instructions
may be withdrawn from the trust account.

Answer 20

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Question 21

The Real Estate Services Act does NOT:
(1) set out sales procedures that must be followed by all licensees in order to keep their licences.
(2) empower the Superintendent of Real Estate to carry out key functions with respect to real estate
licensing.
(3) provide for subdivision regulation by requiring all developers to supply a disclosure statement.
(4) require that all representatives and brokerages be licensed.

Answer 21

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Question 22

According to the Real Estate Services Act and Real Estate Services Regulations, which of the following
statements is TRUE?
(1) An individual may commence trading in real estate immediately after receiving proof of passing the
real estate licensing exam.
(2) All staff employed by a real estate brokerage must be registered with the British Columbia Financial
Services Authority.
(3) An individual may be registered independently as a real estate representative without being
employed by a registered real estate brokerage.
(4) A real estate representative is employed by their brokerage to trade in real estate in the brokerage’s
name, on behalf of the brokerage’s clients.

Answer 22

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Question 23

Under the Real Estate Services Act, where a licensee desires to buy real property or an interest in it for
themselves, or for a company of which the licensee is a shareholder, director, or officer, or for a
partnership of which the licensee is a partner, which of the following must the licensee disclose in writing
to the seller prior to the agreement?
(1) That they are a licensee acquiring the real estate for themselves, or for the corporation or
partnership
(2) The amount of remuneration the licensee expects to receive based on the transaction
(3) The name of the person to whom the disclosure is made
(4) A licensee is required to disclose all of the above.

Answer 23

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