Chapters 10 & 12

Question 1

What is a Principal in common law?

Answer 1

The person for whom an agent has contracted to act for, and for whose benefit the agent is required to perform and make decisions.

Question 2

What is Warranty of Authority?

Answer 2

An agent’s promise or guarantee to third parties that his/her actions are within the scope of authority given by the principal.

Question 3

True or False: An agent’s duties to the principal under common law are purely contractual.

Answer 3

False

Question 4

What type of nature do an agent’s duties and responsibilities to the principal have?

Answer 4

Fiduciary nature

Question 5

Fill in the blank: An agent is required to uphold a duty of _______ to the principal.

Answer 5

loyalty

Question 6

What must an agent maintain alongside loyalty to the principal?

Answer 6

Confidentiality

Question 7

What does FULL disclosure refer to in the context of an agent’s responsibilities?

Answer 7

The requirement to disclose information to the principal beyond what is expected in the RESA.

Question 8

What is the significance of RESA in real estate agency in BC?

Answer 8

It outlines certain disclosures required of agents.

Question 9

Provide an example of Warranty of Authority.

Answer 9

When Buyers’ Agent is dealing with the Seller.