Chapter 2 - The Real Estate Services Act (RESA) Flashcards
What is the purpose of RESA ?
Ensure those offering real estate services meet certain minimum reasonable competency requirements in order to obtain a licence;
* setting out certain standards to ensure that licensees conduct themselves appropriately while
licensed; and
* appointing a regulator, BCFSA, and empowering the Superintendent (from within BCFSA), to
perform key regulatory functions under RESA.
Define the real estate services?
Rental property management services, strata management services, or trading services.
What is the strata corporation?
Legal entity created by the
deposit of a strata plan in the
land title office. The corporation’s
responsibilities are set out in the
Strata Property Act and include the
duty to manage, repair, maintain,
and insure common property and
common assets
What is the trading services?
Activities related to
purchase and sale transactions
lease transactions
assignment of lease
contract of purchase
What is an agency?
A relationship in which one person (the
“agent”) is authorized by another person
(the “principal”) to act on their behalf in
dealing with third parties
Who is a fiduciary?
Person who holds a position of
trust with respect to someone else
and is obliged to act solely
in the other person’s benefit.
What is the BC Financial Services Authority?
Crown regulatory agency that has the
regulatory responsibility over British Columbia’s financial services sector, including real estate services, real estate development marketing, mortgage brokerage, credit unions, pension plans, and trust and insurance companies.
Who is the Superintendent of Real Estate
Chief executive officer of the BC
Financial Services Authority who possesses certain powers, and must fulfill specific duties, under the Real Estate Services Act.
What is the Real Estate Errors and Omissions Insurance Corporation?
A affordable method of protecting licensees from financial loss due to errors and omissions.
What is the Real Estate Compensation Fund Corporation responsible for?
The board of directors is responsible for administering the Compensation Fund Corporation.
What is the brokerage?
A Licensee (often corporate) on
behalf of which other licensees
must provide real estate services
What is a managing broker?
The licensee responsible for a
brokerage, and who is responsible
for exercising the rights conferred
on the brokerage, as well as for
the performance of the duties
imposed on the brokerage by its
licence. In addition, the managing
broker is responsible for the control
and conduct of the brokerage’s
real estate business, including the
supervision of its related licensees
What is an associate broker?
A licensee who meets the educational
and experience requirements to
be a managing broker, but who is
providing real estate services under the
supervision of a managing broker
Who is a representative?
A licensee providing real estate services
under the supervision of a managing broker
What is a personal real estate corporation?
A corporation licensed under the Real
Estate Services Act that may be used
by a licensee through which they
provide real estate services
How do teams work?
Some licensees within a single brokerage operate as teams, where members of the team typically share information
with respect to the various persons to whom they provide real estate services. Teams can be made up
of only licensees, or of a combination of licensees and non-licensees (e.g., unlicensed assistants). New licensees
without an established client base or referral network are often attracted to join a team because they are
able to work closely with the more experienced licensees on their team and become involved in transactions
that they would likely not be exposed to as a new licensee working alone.
What are the Qualifications for a Licence?
1.The applicant must be of good reputation and be suitable to be licensed at the level and in the
category for which the applicant is applying.
2. If the applicant is an individual, the applicant must:
a. be at least 19 years of age; and
b. meet the educational and experience requirements established in the Rules.
3. If the applicant is a partnership or corporation, its partners or directors and officers, as the case may
be, must be of good reputation.
4. The applicant must not have been:
a. refused a licence or have been disciplined under real estate, insurance, mortgage broker, or
securities legislation in British Columbia or another jurisdiction;
b. disciplined by a professional body; or
c. convicted of an offence,
for a reason that reveals the applicant as unfit to be a licensee
What are some trading services?
trading services” means any of the following services provided to or on behalf of a party to a trade in real estate:
(a) advising on the appropriate price for the real estate;
(b) making representations about the real estate;
(c) finding the real estate for a party to acquire;
(d) finding a party to acquire the real estate;
(e) showing the real estate;
(f ) negotiating the price of the real estate or the terms of the trade in real estate;
(g) presenting offers to dispose of or acquire the real estate;
(h) receiving deposit money paid in respect of the real estate
What is a trust account?
An account where money is deposited by
one for the benefit of another. The money is
devoted to a particular purpose and cannot
or should not be diverted for other purposes
What is a consent order?
An order made by BCFSA against
a licensee in cases of professional
misconduct or conduct unbecoming
a licensee where the licensee has
consented to the order rather than
disputed the notice of hearing.
What is an urgent order?
An order made by BCFSA against
a licensee in cases of professional
misconduct or conduct unbecoming a
licensee in situations where it would
be detrimental to the public interest to
proceed through the traditional route
of completing a full investigation or
holding a discipline hearing
What is the Real Estate Development Marketing Act (“REDMA”)?
Regulates the marketing within British Columbia of
“development units” in a “development property”.
REDMA is directed at developers who develop and market various types of real estate developments, called the “development property”. Development properties include subdivisions, strata properties, cooperatives,
time shares, and other shared interests in land or residential leasehold complexes
What is a Subdivisions?
REDMA defines a “subdivision” as land that is divided into lots or parcels, other than under the Strata
Property Act. Therefore, a subdivided lot in a development property is a development unit. As a result, unless
exempted from the requirements of REDMA, a developer must comply with all of the marketing requirements
of REDMA before a subdivided lot can be marketed for sale or lease.
What is a Strata Lot?
A strata lot can be either a strata lot in a stratified building or a bare land strata lot. Strata lots are created
under the Strata Property Act and fall under the requirements of REDMA. A developer must not market a
strata lot unless either:
1. a strata plan (or a bare land strata plan) has been deposited in the land title office; or
2. a building permit (or an approving officer’s preliminary approval) has been issued in relation to the
strata lot.
What is a Leasehold Unit?
REDMA includes leasehold units in a residential leasehold complex as a development unit. A residential
leasehold complex is a complex containing one or more buildings capable of being used for leasehold residential
purposes. Buildings comprised of strata lots, cooperative interests, and shared interests in land are
excluded from the definition of residential leasehold complex.
The sale of leasehold units in British Columbia has sometimes taken the form of the sale of life leases,
which are generally marketed to seniors.
What is the disclosure statement?
(in development)
A document prepared by the
developer of a subdivision
to ensure that investors or
purchasers have adequate
information upon which to
base a purchasing decision
