Lesson 3 Test Flashcards
Swarna, a real estate licensee, held an open house one weekend at her vendor’s home. Another licensee, Janis, brought a purchaser to inspect the house. During their tour of the house, Swarna noticed a banana peel on the floor.
Which one of the following statements is TRUE?
(1) Since persons attending the open house are adults, neither Swarna nor the vendor need concern themselves about this “unexpected danger”.
(2) If the purchaser slips on the peel, both Swarna and Janis could be liable under the Occupiers
Liability Act.
(3) Swarna has a statutory duty under the Occupiers Liability Act to immediately remove the
banana peel which is a potential danger to all visitors to the house.
(4) None of the above
3
Which of the following constitutes trespass?
A. Charles sells magazines from door to door. When he approaches the Jones’ house, he sees a “No Soliciting” sign on the gate but goes up to the door anyway.
B. In order to avoid a mud puddle, Julie leaves the sidewalk and makes a small circle onto
Marilyn’s property.
C. When he was hiking in the park, Williams lost his bearings and wandered around for hours.
Without realizing it, he wandered onto Graham’s land.
D. Joyce was asked by the owner to leave the local store, which she did as quickly as possible.
(1) All of the above
(2) A, B, and C only
(3) A and B only
(4) C only
2
Sandra attended an open house held by Adele, the listing representative, at a lovely Tudor Style home. Sandra loved the house but the price was at the very limit of her budget, so she wanted to be certain
there would be no major repairs necessary to the house. She explained her concerns to Adele who immediately said, “Don’t worry, this house is as solid as the rock of Gibraltar, it is in A-1 mechanical shape!” Six months after Sandra bought the house, the foundation on one side collapsed involving
$15,000 worth of repairs to make the house habitable.
Which of the following statements is/are TRUE?
A. Adele cannot be liable to Sandra because Adele was the agent of the vendor and not the agent of
the purchaser.
B. Adele’s comments to Sandra involved opinions and not statements of fact and therefore no liability for negligent misrepresentation can be imposed on Adele.
C. On the basis of the facts in this problem, Adele may very likely be liable to Sandra for negligent
misrepresentation.
D. If Adele had told Sandra that she should not rely on Adele’s opinion because Adele did not have
knowledge of the condition of the house, then Sandra could not hold Adele liable for negligent
misrepresentation.
(1) A, B, and D only
(2) C and D only
(3) C only
(4) B and D only
2
Which of the following constitutes a trespass?
A. John enters the corner grocery store owned and operated by Fred. After John accidentally tips over a carton of fruit, Fred asks John to leave. John apologizes for his mistake and continues to shop.
B. Kevin parachutes out of a plane. Unfortunately, Kevin misses his target field and lands on the roof of Fred’s corner grocery store.
C. Cathy lives next door to Fred. On Cathy’s land is an old water tower that she has negligently let
deteriorate into disrepair. Finally, the water tower collapses, falling directly onto Fred’s store
and damaging the roof.
D. Steven, a baseball player, hits a ball so hard that it leaves the baseball stadium and lands
harmlessly on the front steps of Fred’s store.
(1) B and D only
(2) A and C only
(3) A, B, and D only
(4) All of the above
3
Eli was anxious to sell his house because he knew it was badly infested with termites. Sydney expressed an interest in buying the property after inspecting it but before making an offer, she asked Eli whether there were any problems she should know about. Eli, elated at the thought of getting the termite-infested home off his hands, assured Sydney that the structure was sound and free of any
defects. Sydney subsequently bought the house and within one month discovered that the damage caused by the termites had seriously threatened its structural soundness, requiring thousands of dollars’ worth of repair work.
Which of the following statements is TRUE?
(1) Sydney can sue Eli under both tort and contract law.
(2) Eli cannot be held liable for his misrepresentation because he is not a professional real estate
licensee.
(3) As there was no special relationship between Eli and Sydney giving rise to a duty of care, Eli cannot be held liable.
(4) Sydney’s remedies are limited to those provided for under contract law.
1
Interested in constructing a Piano Hall of Fame, Schroeder inspected a 10 acre piece of property which was listed for sale by the owner. After looking over the property, he sought the advice of his friend Lucy who was a real estate licensee. Lucy stated that the area would be an excellent location for a
tourist attraction, but advised Schroeder not to rely on her opinion, as she was unsure about the development restrictions applicable in the area. Without checking any further into the matter, Schroeder promptly bought the property for the express purpose of the building the Hall of Fame; he
subsequently learned that the land was located in an agricultural land freeze area and could not be
developed for the purpose of a tourist attraction.
Which of the following statements is TRUE?
(1) Lucy owed no duty of care to Schroeder because she was only giving advice as a friend.
(2) Lucy’s qualification of her statement effectively released her from any liability.
(3) Schroeder can reasonably sue Lucy for negligent misrepresentation because she had a duty, as a
professional in the area, to take all reasonable care that the information she supplied to him was
correct.
(4) Schroeder cannot sue Lucy for negligent misrepresentation because there was no contractual
relationship between them
2
Licensees have been found to be negligent in which of the following situations?
A. A licensee does not verify information in the listing agreement
B. A licensee fails to conduct a title search of the listed property
C. A licensee fails to recommend to the purchaser that the purchaser insert a “subject to financing” clause in an offer to purchase
D. A licensee fails to disclose material facts to the vendor about the purchaser’s ability to buy the
property
(1) A, C, and D only
(2) A, B, and C only
(3) B and D only
(4) All of the above
4
Emilia lives in a house which she has leased from Johan while he is on an exchange program in Finland. Recently, Anika, a boarder in the house, noticed that their neighbour, Sloppy Joe, had entered the property to repair a hole in the fence through which his dog had a habit of escaping. After
the repairs were made, a pile of lumber, some tools, and a can of nails remained on the property leased by Emilia. While the presence of these objects has caused no damage to the property, Anika finds them unsightly and has asked for your opinion.
Which of the following is/are correct?
A. Johan, as owner of the property, can bring an action in trespass against Joe for wrongfully
entering the property and leaving the objects behind.
B. Emilia will most likely succeed in a trespass action against Sloppy Joe for the wrongful placing of
the materials on the land she has leased.
C. Anika, as a boarder, has a right to bring an action in trespass against Joe.
D. Because Joe’s actions had a legitimate purpose, he is not liable in trespass.
(1) A, B, and C only
(2) A only
(3) B only
(4) D only
3
Indicate which of the following disciplinary actions might occur when a real estate licensee has breached a provision of the Real Estate Services Act or the Regulations or Rules, or has breached the Code of Ethics and Standards of Business Practices.
A. The licensee may be required to pay the costs of any hearing of the real estate board.
B. His or her licence may be cancelled by the Real Estate Council of BC.
C. The real estate board of which the licensee is a member may expel the licensee from the board.
D. The real estate board of which the licensee is a member may suspend his or her licence.
(1) All of the above
(2) A, B, and C only
(3) B and D only
(4) C and D only
2
A landlord owned acreage which she leased to a tenant to use as an explosives testing site. The landlord’s neighbour operated a turkey farm on the property adjacent to the acreage. As a result of the explosions taking place at the tenant’s site, every year for three years the neighbour’s turkeys became
distraught and died.
Which of the following statements are TRUE?
A. The tenant is responsible for the nuisance and will be liable to the neighbour for his losses.
B. The landlord is not liable for nuisance because she has no control over what the tenant does on the leased property.
C. The landlord is liable to the neighbour in nuisance because she leased the property to the tenant
for a purpose which would necessarily cause a nuisance to the neighbour.
D. The landlord cannot be responsible for the nuisance created by the tenant because the landlord
is not the occupier of the acreage.
(1) C and D only
(2) A and C only
(3) A and B only
(4) B and D only
2
Which of the following is TRUE with respect to suspicious transactions under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act?
(1) The threshold for reporting a suspicious transaction is “reasonable grounds to believe”.
(2) Suspicious Transaction Reports must filed within 30 days of meeting the threshold for the filing of a Suspicious Transaction Report.
(3) Suspicious Transaction Reports must be submitted electronically to the Real Estate Council of
British Columbia.
(4) Potential red flags that could initiate suspicion or indicate that something may be unusual
without reasonable explanation are known as money laundering/terrorist financing (“ML/TF”)
indicators.
4
Carmela has an absolute hatred for visible electric service wires. She is only willing to live in a house that has underground service wiring. She goes to an open house being held by Beatrice and tells Beatrice that she likes the house very much, but is quite disturbed by the electrical wires, which are
particularly visible from the family room and kitchen windows. Beatrice informs Carmela that the city encourages homeowners to move their wires underground as part of its beautification project by paying half the cost, and that the charges to Carmela would therefore be minimal. Carmela buys the
house and is horrified when she learns from the city clerk that the entire cost of burying the wires must be borne by her and that the cost could exceed $5,000.
Which of the following statements is
TRUE?
(1) Carmela has no right to sue Beatrice because she was only giving her opinion and did not tell
Carmela that she could rely on it.
(2) If Beatrice made her statement to Carmela knowing that it was false, then she would be liable for
damages for deceit.
(3) For a “special relationship” giving rise to a duty of care to exist, it is necessary for there to be a
contractual relationship between the parties.
(4) All of the above statements are true.
2
Jane moved to a rural area home and installed a hot tub in the side yard. She filled the tub with water in anticipation of using it. Her property was, however, invaded by hundreds of bees apparently
seeking water.
As a result of these bees, Jane and her friends and family cannot safely use the hot tub
or the side yard from April to September of each year. Silver Maple Apiaries, a licensed honey farm, is located in the area. Silver Maple places its bee hives on the property it leases from Gus who is Jane’s
neighbour. Jane is now suing both Gus and Silver Maple.
Which one of the following is TRUE?
(1) Because Silver Maple is licensed to raise and keep bees, it is not liable to Jane.
(2) Because Silver Maple leases the land from Gus, it is liable to Jane under the Occupiers Liability
Act.
(3) Gus is liable to Jane in trespass.
(4) Silver Maple may be liable to Jane under the tort of private nuisance.
4
Francesca built an Olympic-size swimming pool in her back garden. All the children in her neighbourhood began to come over and swim in the pool, often without asking permission and on occasions when Francesca was not at home. Francesca then built an 8 foot solid wood fence around the pool which she kept padlocked except when she was using the pool. One day while Francesca was
at work Willard, a 9 year old boy, climbed over the fence and while diving off the side of the pool, slipped and hit his head on the edge of the pool, suffering a serious concussion.
Which of the following statements is/are FALSE?
A. By building a tall fence and locking it Francesca probably fulfilled her duty to child-trespassers under the BC Occupiers Liability Act.
B. The law may require a higher standard of care when the occupier is aware that children maybe entering the premises.
C. Francesca was negligent in not ensuring that it was impossible for an unauthorized person such as Willard to gain access to the pool.
D. If Francesca were not the owner of the property, but only a tenant, she could not be liable under
the Occupiers Liability Act.
(1) A only
(2) A and D only
(3) C and D only
(4) A, B, and D only
3
Which of the following statements about occupiers liability is TRUE?
(1) The definition of an “occupier” in the Occupiers Liability Act includes people who may have temporary control over the premises.
(2) The Occupiers Liability Act preserves the common law where the standard of care is owed is based on the category of visitor.
(3) The Occupiers Liability Act specifies the different standards of care that are required in different circumstances.
(4) The Occupiers Liability Act relieves occupiers of other higher standards of care that may be imposed on the occupier by other statutes
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