Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Real Estate Licence > mock 7 > Flashcards

mock 7 Flashcards

1
Q

You have a partially completed appraisal report that you need to fill in. The subject property has 4 bedrooms and 4 bathrooms. The house next door is similar in all respects except for the number of bathrooms and the number of bedrooms. The comparable sold for $221,000 and has 3 bedrooms and 3 bathrooms. If the market value of a bedroom s $4,000 and the market value of a bathroom is $5,700, the adjusted sale price for this comparable is:

  1. $230,700
  2. $211,300
  3. $219,300
  4. $222,700
A
  1. $230,700
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Erica has just sold her 5 acre lot to Carmen, a local developer. The lot is currently occupied by a 65 year old house and is located in a single family residence zone. Carmen plans to tear down the existing house and build a 42 unit condominium project in its place. She is aware that she will have to prepare rezoning applications. Which of the following statements are FALSE?

A. If a municipality rezones the lot according to Carmen’s application, it will not be liable for damages arising from the decrease in property values in the surrounding areas that may result.

B. The council, in addition to voting in favour of Carmen’s rezoning proposal, may take the approval conditional on a number of requirements from Carmen, such as paying for the improvements of existing roads surrounding the lot.

C. Public hearings for rezoning bylaws are rare, and in most cases, all activities are conducted through written proceedings.

D. Any rezoning bylaw will be given two readings or public hearings, where a majority of zoning staff members must vote in favour of the bylaw.

  1. Only C and D are false
  2. Only B and D are false
  3. Only A and C are false
  4. All of the above statements are false
A
  1. Only C and D are false
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Which of the following statements comparing stratas and cooperatives is FALSE?

  1. Unlike strata ownership, cooperative ownership does not bestow any Fee Simple title to the cooperative’s owner’s unit.
  2. The requirement for a disclosure statement may apply to both stratas and cooperatives.
  3. Cooperatives are generally easier to sell than stratas.
  4. Where an existing building is being converted to either strata or a not-profit cooperative, the existing tenants covered by the protections afforded by the Residential Tenancy Act.
A
  1. Cooperatives are generally easier to sell than stratas.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

You have come across a property that possesses latent value. What method of appraisal would be most appropriate to appraise the subject property?

  1. The cost method
  2. The comparison method
  3. The income method
  4. The residual method
A
  1. The residual method
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Which of the following items are found in a house and considered to be chattels.
A. New laminated flooring in the downstairs rooms and hallways:

B. A fridge in the garage

C. Wood for the fireplace

D. A rose bush in the front of the house

  1. A and C only
  2. B and C only
  3. B and D only
  4. C and D only
A
  1. B and C only
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

You have a partially completed appraisal report that you need to fill in. The 2,300 square foot subject property has 4 bedrooms. The house next door is similar in all respects except for the number of bedrooms and square footage. The 2,200 square foot comparable sold for $321,000 and has 3 bedrooms. If the market value of a bedroom is $3,200 and above an 1,800 sq. ft. benchmark, each 100 sq. ft. is worth $5,000, the adjusted sale price for this comparable is:

  1. $329,200
  2. $312,800
  3. $323,700
  4. $318,300
A
  1. $329,200
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

As a borrower of mortgage funds, which of the following rates would you choose ?

A. 3.95% per annum, compounded monthly

B. 4.25% per annum, compounded annually

C. 4% per annum, compounded semi-annually

  1. Rate A
  2. Rate B
  3. Rate C
  4. . Impossible to determine
A
  1. Rate A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Which of the following statements made during a recent discussion about ownership is TRUE?
A. A corporation is subject to income tax, unlike a partnership.

B. Only shareholders are entitled to manage a corporation in accordance with the Consumer Protection Act.

C. A corporation whose shares are traded on a stock exchange is referred to as a private company.

D. Individuals who acquire shares in a company do not own the assets of the company.

  1. Only statements A and D are true
  2. Only statements A, B and C are true
  3. Only statements B and D are true.
  4. A, B C and D are true.
A
  1. Only statements A and D are true
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Which of the following acts would engage a category of law that is considered “public law”?

  1. Breaching a warranty in a contract
  2. Negligence
  3. Evading taxes
  4. Filing for divorce
A
  1. Evading taxes
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Which if the following criteria are used by negotiation experts in determining the effectiveness of negotiations?

  1. Efficiency, preservation of the relationship, a zero-sum game
  2. Distributive results, preservation of the relationship, minimal wasted resources
  3. False authority, efficiency, a zero-sum game
  4. Efficiency, satisfaction of both parties, minimum wasted resources
A
  1. Efficiency, satisfaction of both parties, minimum wasted resources
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Which of the following statements comparing cooperatives and condominiums is TRUE?

  1. Both condominiums and cooperatives are created by filing a plan in the land title office.
  2. Both condominiums and cooperatives must provide each buyer with a disclosure statement.
  3. Buyers of coops will generally find it easier to finance their purchase than will buyers of cooperatives.
  4. Both owners of condominiums and owners of cooperatives are equally free to sell their units to whomever they wish.
A
  1. Both condominiums and cooperatives must provide each buyer with a disclosure statement.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Which of the following is TRUE where a comparable is sold subject to vendor-supplied mortgage at an interest rate lower than the current market value?

  1. The comparable property may never be used as evidence of market value.
  2. The comparable sale price must be adjusted downward
  3. The comparable price may only be used as evidence of market value
  4. The comparable sale price must be adjusted upward.
A
  1. The comparable sale price must be adjusted downward
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Consider the following interests in land. Which of he above interests in land require a dominant and a servient tenement?
A. Life estates

B. Easements

C. Freehold estates

D. Profits a prendre

  1. B only
  2. A and C only
  3. B, C and D only
  4. All of the above
A
  1. B only
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

The term in the mortgage agreement that brings the maturity date of the loan forward in the borrower defaults, so that the outstanding balance is immediately due and payable in 3 months known as:

  1. Acceleration clause
  2. Time clause
  3. Omnibus clause
  4. Sales Clause
A
  1. Acceleration clause
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

As defined by the promotional mix, which of the following represents face-to-case communication with a potential customer?

  1. Personal selling
  2. Public relations
  3. Sale promotion
  4. Publicity`
A
  1. Personal selling
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Under the Environmental Management Act, a mortgage lender may be liable for the remediation of a contaminated site if the lender:

  1. participates only in purely financial matters related to the site.
  2. insists on environmental conditions within a security agreement.
  3. becomes the registered owner of the site.
  4. appoints a person to inspect a contaminated site to determine future actions to take.
A
  1. becomes the registered owner of the site.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Eric and Mandy own a unit in Poppyland Place, a beautiful strata development. They bought the unit 5 years ago and have rented it out to Ms. Johnson, who continues to occupy the unit. Mandy has recently passed away, and her will gifted her interest in the unit to her son Melvin. Melvin has now contacted Eric and is demanding that he be paid one half of the unit price. Which of the following statements are FALSE?

A. Upon Mandy’s death, the entire interest remains with the surviving joint tenant Eric.

B. By gifting her interest in the unit to Melvin, Mandy severed the joint tenancy.

C. Melvin and Eric now own the unit as tenants in common.

D. Melvin and Eric own the unit as joint tenants.

  1. Only A is false
  2. Only D is false
  3. Only A and D are false
  4. Only B, C and D are false.
A
  1. Only B, C and D are false.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Which of the following statements regarding generally accounting principles are TRUE?
A. The materiality principle holds that changes to accounting principles should only be made when the change results in providing more relevant and useful information then user of the financial statements.

B. The consistency principle is closely aligned to the cost principle because the best way to ensure objectivity in accounting transactions is to record the amount of consideration given up at the date of the transaction.

C. To conform with the cost principle, it is not appropriate to record the assets as what it might be considered its fair market value, the asset should be recorded at the time that the enterprise paid for it.

D. The matching principle requires the accrual basis of accounting, that is, expenses are always recorded when incurred, which is not necessarily when they are paid.

  1. Only statements A and D are true
  2. Only statements C and D are true
  3. Only statements A and B are true
  4. Only statements B and C are true.
A
  1. Only statements C and D are true
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

A mortgage loan with a face value of $475,000 is arranged through a mortgage broker. A commission of $7,250, appraisal fees of $425, as well as survey and legal fees of $600 will be deducted from the face value before the funds are advanced to the borrower. Calculate the cost of funds advanced to the borrower, expressed as an effective annual rate, if the loan is written at 5% per annum, compounded semi-annually, with monthly payments over a 25 -year amortization and a 5 year term.

  1. 5.344991%
  2. 5.368395%
  3. 5.502478%
  4. 6.954952%
A
  1. 5.502478%
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

A purchaser has properly received, read and acknowledged reading the Disclosure statement relating to a development unit in BC that she wishes to buy and enters into a purchase agreement for that development unit and … Development Marketing Act has occurred. When may she serve notice to change her mind about the Purchase agreement?
(This question is not quite complete – once the exact wording is determined, it will be updated).

  1. Never, unless the disclosure statement contains a misrepresentation with respect to the development property and / or unit.
  2. No later then 7 days from the date of the purchase agreement
  3. No later than six months for the date of the purchase agreement.
  4. At any time prior to receiving title to the development unit.
A
  1. No later then 7 days from the date of the purchase agreement
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

An arrangement where a lender makes payments to a borrower over the term of the mortgage which is paid back at the end of the term is referred to as:

  1. an interim blanket mortgage.
  2. a vendor take-back mortgage.
  3. bridge financing.
  4. a reverse annuity mortgage.
A
  1. a reverse annuity mortgage.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

An investor is willing to sell his house for $296,000. He demands 24 monthly payments and payment of the outstanding balance in the amount of $275,000 with the 24th payment. He wishes to earn an effective annual rate of 10% on his money. What is the monthly payment required?

  1. $3,157.76
  2. $3,166.37
  3. $3,212.42
  4. $3,260.71
A
  1. $3,157.76
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Which one of the following items will NOT be found on the Balance Sheet of a corporation?

  1. Retained earnings to date
  2. Names of the corporation shareholders
  3. Original cost of the property owned by the corporation
  4. Number of the shares issued
A
  1. Names of the corporation shareholders
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

One of the reasons that the Commercial Act appears to be more favorable to landlords than the Residential Tenancy Act is because under the former commercial landlords, unlike residential landlords:

  1. May only collect a security deposits that is equal to or less than-one-half of one month’s rent.
  2. May not exercise the common law remedy of distress.
  3. Do not have to mitigate damages when a tenant abandons a property.
  4. May interfere with a tenant’s reasonable quiet enjoyment of a property.
A
  1. Do not have to mitigate damages when a tenant abandons a property.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Which of the following statements is FALSE regarding the Real Estate Council powers to investigate a licensee?

  1. The Real Estate Council may investigate a licensee if it is suspected that he or she has contravened any previsions of the Act, Regulations or Rules.
  2. The Real Estate Council may conduct an investigation to determine whether a licensee has committed professional misconduct or conduct unbecoming a licensee.
  3. The Real Estate Council must obtain permission from the court before beginning an investigation.
  4. Real Estate Council can conduct an investigation into a licensee’s conduct whether he has or not if have received a complaint.
A
  1. The Real Estate Council must obtain permission from the court before beginning an investigation.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Which of the following is NOT a fiduciary duty that an agent owes to his principal:

  1. The duty of loyalty
  2. The duty to exercise reasonable care and skill
  3. The duty to carry out the lawful instructions of the principal
  4. The duty to indemnify the principal
A
  1. The duty to indemnify the principal
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

The immobility of real property means that land is subject to external influences from the neighboring properties known as:

  1. externalities
  2. latent influencing factors
  3. immobilities.
  4. extrinsic factors
A
  1. externalities
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

George and Andrew who are the fest friends, are drafting a contract to document the facts that G with purchase Andrew’s house. The house is worth approximately $100,000. Consider the following amounts, items and services.
A. $1 in American currency

B. G’s vintage car, which A has always wanted, worth $90,000

C. A case of beer G. gave Andrew last week

D. A promise from G. to repair Andrew’s computer next week.

Which of the above amounts, items and services could G. use as consideration to make the contract enforceable?

  1. B only
  2. A and B only
  3. A, B and D only
  4. All of the above.
A
  1. A, B and D only
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Which type of tenancy automatically renews itself on the last day of the term for a further term if the same duration?

  1. A periodic tenancy
  2. A joint tenancy
  3. A tenancy at will
  4. A fixed tenancy.
A
  1. A periodic tenancy
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

In using the cost method of appraisal, the MAJOR difficulty is experienced in calculating:

  1. Incurable physical depreciation
  2. Curable functional depreciation
  3. Curable physical depreciation
  4. Replacement cost of the building as new.
A
  1. Incurable physical depreciation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What type of house has a steep shingled roof, peaked turrets, heavy chimneys, an asymmetrical façade, porches, brick cladding, and cookie cutter trim?

  1. West Coast Contemporary Style
  2. Georgian style
  3. Victorian style of house
  4. Classical style
A
  1. Victorian style of house
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Which of the following statements regarding immobility and durability of land is FALSE?

  1. The immobility or real estate as a commodity allows it to be moved to a better market.
  2. The physical durability of real property means that it has value as an investment and a source of shelter.
    3 When considering durability of structure, it is important to distinguish between economical life and physical life of the structure.
  3. Immobility is responsible for the local nature of real property markets.
A
  1. The immobility or real estate as a commodity allows it to be moved to a better market.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Which of the following is a TRUE statement regarding the Code of Ethics ?

  1. The Code stresses that a REALTOR’s highest duty of care is owed to his or her client regardless of the nature of the client’s instructions.
  2. The Code is a document that each REALTOR may or may not choose to adopt in his or her practice.
  3. The Code acts as an alternative to the Canadian Real Estate Association’s Standards of Business Practice.
  4. The Code includes the Golden Rule “Do unto others as you would have them do unto you”.
A
  1. The Code includes the Golden Rule “Do unto others as you would have them do unto you”.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

At lunch one Sunday afternoon, Frank and Stefanie orally agreed that S. will lease Frank’s ski cabin for 4 years. With respect to section 59 if the Law and Equity Act which states the general requirement that contracts dealing with real estate should be in writing. Which one of the fallowing is TRUE?

  1. Section 59 of the Law and Equity Act exempts leases with a term less then 5 years from the writing requirement.
  2. Section 59 of the Law and Equity Act is inapplicable because it deals with transfers of real estate rather than the leasing of real estate.
  3. Since there is no written record of the lease, the lease is void.
  4. If Frank pays to help S. move his belongings and attends S.’s house-warming party on the property, it is likely that the lease, despite not being in writing, will be enforceable against Frank’s conduct is consistent with a contract being made.
A
  1. If Frank pays to help S. move his belongings and attends S.’s house-warming party on the property, it is likely that the lease, despite not being in writing, will be enforceable against Frank’s conduct is consistent with a contract being made.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

The anchoring effect is best described as:

  1. A sociological theory that predicts that the longer someone occupied a property, the higher the price he or she will seek upon deciding to sell it.
  2. A psychological phenomenon whereby the first number quoted in a negotiation causes the rest of the negotiation to be based on that number.
  3. A market force that causes the median price of a good fall when there is a declining market for that good
  4. An economic factor that decreases demand for real estate services ds die to an-increase in interest rates.
A
  1. A psychological phenomenon whereby the first number quoted in a negotiation causes the rest of the negotiation to be based on that number.
36
Q

To obtain a mortgage broker licence in BC, a person must meet which of the following requirements:

  1. must have experience in BC
  2. must be of good reputation
  3. must submit financial statements
  4. must meet the requirements for a managing broker’s licence.
A
  1. must be of good reputation
37
Q

Which of the following lenders are NOT impacted by the stress test borrower qualification rule for
uninsured mortgages implemented in January 2018?

  1. Trust companies
  2. Chartered banks
  3. Credit Unions
  4. Federally regulated financial institutions
A
  1. Credit Unions
38
Q

Which of the following items will NOT appear on the buyer’s statements of adjustment:

  1. Cash proceeds of sale
  2. Purchase price
  3. Property transfer tax
  4. Balance due to complete
A
  1. Cash proceeds of sale
39
Q

An offer is released or expires when one or more of the following occurs:

A. The offeror decides to revoke his or her oral offer and mails a written revocation to the offeree before acceptance.

B. No time limit is specified in the offer but a reasonable time has passed without acceptance by the offeree.

C. The offeror dies or becomes insane before the offeree accepts the offer.

D. An offer is revoked be the offeror and the revocation is communicated to the offeree before acceptance.

  1. All of the above statements are true
  2. Only A, B and C are true
  3. Only A and B are true
  4. Only B, C and D are true
A
  1. Only B, C and D are true
40
Q

D. has an agency contract with W. that allows W to buy cars on D.’s behalf. Specifically the contract only authorized W to buy collector cars that were made before 1960. One day, W. finds a rare car made in the 1980’s that D. mentioning he would like to own, so W. buys the car on D’s behalf. The Vendor agrees and the sale and a contract is signed. D’s so pleased with the purchase that he immediately elects to complete the contract upon hearing the news from W. In this situation, W.’s authority to buy the car was created by:

  1. Ratification
  2. Implication
  3. An express contract
  4. Estoppel
A
  1. Ratification
41
Q

Which of the following statements are FALSE in regards to Trespass?

  1. A trespasser’s actions must be intentional.
  2. A trespasser’s actions cannot be indirect
  3. A trespasser’s actions do not have to result damage
  4. A trespasser’s actions must occur repeatedly
A
  1. A trespasser’s actions must occur repeatedly
42
Q

Which of the following statements regarding the Multiple Listing Services (MLS) is TRUE?

  1. The MLS website focuses on industry issues, trends and financing.
  2. When a property is listed for sale, the MLS website is the only place that listing information can be obtained.
  3. The MLS website allows trading services representations to generate the most common forms and contracts in the real estate market.
  4. Local real estate boards manage the listing information for properties listed on the MLS in their geographic area, however the accuracy of the information is the responsibility of the licensee.
A
  1. Local real estate boards manage the listing information for properties listed on the MLS in their geographic area, however the accuracy of the information is the responsibility of the licensee.
43
Q

Which of the following statements regarding the stress test borrower qualification rule for uninsured mortgages is TRUE?

  1. The mortgage qualifying rate is always based on an additional 2% above the mortgage’s negotiated contract rate.
  2. The stress test mortgage qualifying rate is also known as the benchmark interest rate.
  3. The Financial Institutions Commission of BC established the stress test requirements for all new mortgages from federally chartered institutions.
  4. The stress test qualification rules only apply to mortgages from credit unions.
A
  1. The stress test mortgage qualifying rate is also known as the benchmark interest rate.
44
Q

When mortgage payments on fully amortized loans are rounded up to the next higher ten dollars:

  1. The final payment necessary to repay the loan will be the same as the regular payments.
  2. The number of payments required may decline in addition to reducing the size of the final payment.
  3. The final payment necessary to repay the loan will be larger than the regular payments.
  4. The number of payments required will always stay the same due to the loan term and the final payment will also be the same as the regular payments.
A
  1. The number of payments required may decline in addition to reducing the size of the final payment.
45
Q

Your client plans to pay $400,000 for a vacant lot, which he feels will sell in the end of 4 years for $545,000. Assuming that these are the only cash flows for this investment, what yield expressed as a nominal rate with monthly compounding will your client earn?

  1. 11.660105%
  2. 7.884476%
  3. 7.758001%
  4. 8.039889%
A
  1. 7.758001%
46
Q

In the comparative method of appraisal, it is MOST important that the subject building and the comparable buildings be:

  1. similar with respect to factors that have a major influence on buyers and sellers.
  2. free from ant mortgages on title.
  3. of the same general architectural style.
  4. constructed by either average or above average work workmanship.
A
  1. similar with respect to factors that have a major influence on buyers and sellers.
47
Q

An investor has decided to established a bank account in order to accumulate sufficient funds at the end of 5 years to purchase a vacant lot. If the account pays interest at 6% per annum, compounded annually, and the investor makes deposits of $15,000 at the end of each year, how much capital will she have accumulated at the end of 5 years?

  1. $104,629.78
  2. $84,556.39
  3. $75,773.70
  4. $63,185.46
A
  1. $84,556.39
48
Q

Who owns a common property of a strata corporation?

  1. Each strata lot owner owns a proportionate share of the common property based on his unit entitlement.
  2. The strata council, whose responsibility is to manage the common property in the best interests of the strata lot owners.
  3. Each strata lot owner owns an equal share of the common property.
  4. The strata manager, as a trustee for the individual strata lot owners.
A
  1. Each strata lot owner owns a proportionate share of the common property based on his unit entitlement.
49
Q

What notice is required for a Special General Strata meeting:

  1. to give at least 30 days written notice in advance of every general meeting.
  2. 20 days verbal should be sufficient
  3. 20% shares in strata entitles you to demand in writing that the strata corporation hold a special general meeting to consider a resolution or other matter.
  4. none of the answers listed give the required notice
A
  1. 20% shares in strata entitles you to demand in writing that the strata corporation hold a special general meeting to consider a resolution or other matter.
50
Q

You are talking to your friend about green construction and she seems to be confused about third party certification. In order to help, you explain to her that when someone says LEED, they are referring to:

  1. The Lender for Environmental Education Designation third party certification program.
  2. The Leadership in Energetic Efficiency Design third party certification program.
  3. The Leader in Environmental and Ergonomic Design third party certification program.
  4. The Leadership in Energy and Environmental Design third party certification program.
A
  1. The Leadership in Energy and Environmental Design third party certification program.
51
Q

Jason is looking to sell his downtown apartment unit, enters into a multiple listing agreement with Pam, a licensee at S. Realty. Which one of the following statements is FALSE?

  1. Jason is free to sign multiple listing agreements with a number of licensees, and the licensee that effects the sale will be entitled to the commission as stated in his or her Multiple listing agreement.
  2. Other real estate licensees may assist Pam is selling Jason’s place.
  3. If a selling agent approaches Jason with a purchase and he completes a contract of Purchase and sale without Pam’s assistance or knowledge, Jason will still be liable for a commission to Pam.
  4. A multiple listing agreement is different from the ordinary exclusive listing because the contract requires that the listing be distributed to all of the members of the real estate board.
A
  1. Jason is free to sign multiple listing agreements with a number of licensees, and the licensee that effects the sale will be entitled to the commission as stated in his or her Multiple listing agreement.
52
Q

Which of the following statements regarding the stress test borrower qualification rule for uninsured mortgages is FALSE?

  1. The mortgage qualifying rate is based on the greater of the Bank of Canada’s 5-year benchmark rate and 2% above the mortgage‘s negotiated contract rate.
  2. The Financial Institutions Commission of BC established the stress test requirements for all new mortgages from federally charted institutions.
  3. The stress test mortgage qualifying rate is also known as the benchmark interest rate.
  4. The stress test qualification rules only apply to mortgages from federally charted institutions.
A
  1. The Financial Institutions Commission of BC established the stress test requirements for all new mortgages from federally charted institutions.
53
Q

A borrower has arranged a loan of $285,000 at an interest rate of 5% per annum, compounded semi-annually with payments set as $2,157 per month. What is the period necessary to amortize the loan?

  1. Exactly 191.280574401 years
  2. Exactly 240 months
  3. Approximately 13 years
  4. Approximately 16 years
A
  1. Approximately 16 years
54
Q

Which of the following statutes affect the real estate property taxation in BC
A. Income Tax Act

B. Assessment Act

C. School Act

D. Seized Property Management Act

  1. B only
  2. A and C only
  3. B and C only
  4. A, B and D only
A
  1. B and C only
55
Q

A mortgage loan has a face value of $300,000, an interest rate of J2 = 4%, an amortization period of 25 years, a term of 5 years, and an option to make accelerated biweekly payments, rounded up to the next highest dollar. If this option is exercised, what is the outstanding balance owing at the end of the 5-year term?

  1. $317,935.02
  2. $232,928.17
  3. $311,500.07
  4. $252,210.35
A
  1. $252,210.35
56
Q

The requirement in BC that a real estate agent must possess a license is set out by:

  1. The common Law
  2. Federal legislation
  3. Provincial statute
  4. The Real Estate Council of BC
A
  1. Provincial statute
57
Q

Your client owns a small office building and has applied for a loan at the bank. The property has an annual net operating income of $117,000 and has a lending value of $500,000. The bank uses a 1.17 debt coverage ratio and will allow a maximum loan-to-value ratio of 70%. Mortgage rates are J1= 5% for fully amortized loans and a 4 year term and annual payments. What is the maximum 4 year loan your client will be entitled to from the bank, rounded to the next higher dollar?

  1. $350,000
  2. $322,987
  3. $354,596
  4. $414,877
A
  1. $350,000
58
Q

When will BC Assessment mail assessment notices to property owners:

  1. sometimes in July
  2. the end of October
  3. the end of December
  4. sometimes in March
A
  1. the end of December
59
Q

. Which of the following scenarios would result in he termination of an agency relationship?

  1. An oral revocation of the agency relationship by the principal.
  2. An oral revocation of the agency relationship by the agent.
  3. The death, insanity or bankruptcy of the principal or the agent.
  4. All of the above.
A
  1. All of the above.
60
Q

Anna is a real estate licensee who is hosting an open house. Immediately prior to the open house, the sellers of the house told her that they are in the middle of repairing a front step but need to have the open house immediately, therefore, the step will not be completely repaired in time for the open house. The sellers will not be present during the showing and Anna only has access to the house for the duration of the open house. Anna did not put on a sign warning visitors of the step, and a guest was injured on the step during the open house. Which of the following statements are TRUE?

  1. Anna would not be liable for breach of the Occupiers Liability Act as a broken step is not dangerous enough to require a warning to visitors.
  2. Anna would not be liable to breach of the Occupiers Liability Act because she was not an occupier of the premises when the visitor was injured.
  3. Anna may be liable for breach of the Occupiers Liability Act as she was an agent of the sellers and they empowered her to fulfill their duties under the Act.
  4. Anna would not be liable for breach of the Occupiers Liability Act because the visitors willingly assumed the risks of injury when entering the house during open house.
A
  1. Anna would not be liable to breach of the Occupiers Liability Act because she was not an occupier of the premises when the visitor was injured.
61
Q

A mortgage loan has a face value of $370,000, an interest rate of J2 = 5.5%, an amortization period of 20 years, a term of 3 years, and an option to make accelerated biweekly payments, rounded up to the next highest dollar. If this option is exercised, what is the outstanding balance owing at the end of the 3-year term?

  1. $232,928.17
  2. $311,500.07
  3. $328,192.44
  4. $317,935.02
A
  1. $328,192.44
62
Q

Which of the following is TRUE with respect to the Contaminated Sites Registry (CSR) in BC?

  1. The CSR is part of the land title registration system in BC
  2. The CSR was established by the Land Title Act
  3. It is more likely that a commercial property will be in the CSR than a residential property.
  4. CSR searches must be done by visiting the CSR office in Victoria, BC
A
  1. It is more likely that a commercial property will be in the CSR than a residential property.
63
Q

Section 52 of the Competition Act states that false or misleading advertising in a criminal offence. Which of the following statements are FALSE?

A. Section 52 requires that a representation to the public be false or misleading in any respect.

B. Section 52 covers only those representations made in writing, as oral representations cannot be proven in a court law.

C. To determine weather a given representation is false or misleading, a court is required to assess the general impression conveyed by the representation as well as its literal meaning.

D. The only penalty for those who breach section 52 is fines, which can be several thousands of dollars.

  1. Only C is false
  2. Only A and B are false.
  3. Only A, B and D are false
  4. All of the above are false
A
  1. Only A, B and D are false
64
Q

A landlord provides a tenant notice or termination under the following scenarios:
A. A residential tenant causes damage to the landlord’s property by taking part in an illegal activity.

B. A residential tenant fails to pay rent

C. A residential landlord wants to convert the tenant’s premises into a suite for his elderly mother.

Which of the following scenario(s) require(s) the SHORTEST notice period?

  1. Scenario A
  2. Scenario B
  3. Scenario C
  4. Both A and B
A
  1. Scenario B
65
Q

Given the following information, calculate the cash proceeds to Vansessa , the seller from Peter, the buyer
Price: $200,000
Deposit to brokerage: $15,000
Financing: 1st mortgage of $92,000 to be assumed
2nd mortgage of $34,000 has been arranged
Taxes: Unpaid and overdue in the amount of $1,095. A penalty owing of $105.These will be paid by the conveyancer.
Commission: 5% of the sale price
Adjustment, completion: August 31st
Conveyancing fees: $1,000
Note: assume that is NOT a leap year.

  1. $97,166.00
  2. $96,169.00
  3. $97,169.00
  4. $82,169.00
A
  1. $97,169.00
66
Q

Lara, Patrick’s agent, has an express authority to enter into a contract with Tom on Patrick’s behalf. However, since Lara did not disclose to Tom that she is was acting as an agent for Patrick:

  1. No contract can exist because there is no disclosure.
  2. Only Lara may sue Tom to enforce the contract.
  3. Patrick may sue Lara to enforce the contract.
  4. Tom may sue either Lara or Patrick to enforce the contract.
A
  1. Tom may sue either Lara or Patrick to enforce the contract.
67
Q

You have a partially completed appraisal report that you need to fill in. The subject property has 4 bedrooms and 5 bathrooms. The house next door is similar in all respects except for the number of bedrooms and bathrooms. It sold for $321,000 and has 3 bedrooms and 4 bathrooms. If the market value of a bedroom is $3,200 and the market value of a bathroom is $5,700, this comparable will have to be adjusted for bedrooms and bathrooms by:

  1. +$3,200 and –$5,700 respectively.
  2. +$3,200 and +$5,700 respectively.
  3. $0 and –$6,400 respectively.
  4. –$3,200 and +$6,400 respectively.
A
  1. +$3,200 and +$5,700 respectively.
68
Q

Which of the following is an offence under the Competition Act?

  1. Failure to disclose a conflict of interest
  2. Charging an excessive rate of interest
  3. Agreements in restraint of trade
  4. Committing mortgage fraud
A
  1. Agreements in restraint of trade
69
Q

Which of the following are among the duties and powers of the Real Estate Council?

  1. Establishing a fund for the use of the Real Estate Foundation.
  2. Lobbying for real estate law reform on behalf of the real estate industry.
  3. Advancing the knowledge, skill and competency of licenses.
  4. Protecting licenses from financial loss due to errors and omissions.
A
  1. Advancing the knowledge, skill and competency of licenses.
70
Q

When attempting to determine whether a particular agreement has created a license or a lease, the best method is to:

  1. Check what classification the agreement was registered as in the Land Title office.
  2. Apply the test for a lease as set out in the Residential Tenancy Act
  3. Use the agreement, the surrounding circumstances and the purpose behind the agreement to determine the intention of the agreement.
  4. Look at the formal title and heading of the agreement for either license type or lease type legal language.
A
  1. Use the agreement, the surrounding circumstances and the purpose behind the agreement to determine the intention of the agreement.
71
Q

Which of the following statements is/are TRUE?
A. The three most common exterior door materials are rubber, metal and plastic.
B. Glassfibre batt is the most common type of wall insulation and is rated according to “R-value”
C. When the opening position of a window is hinged on the top and it opens outward , its is known as a casement window.
D. Manufactured vinyl siding is popular because of its low cost and ability to maintain its finish.

  1. A and D only
  2. B and C only
  3. B and D only
  4. A, B and D only
A
  1. B and D only
72
Q

Which of the following statements regarding mortgages is TRUE?

  1. An acceleration clause allows the lender to accelerate the expiry of the term of the mortgage and demand repayment of the entire loan amount, provided that the borrower is given three months’ notice.
  2. Upon the execution of the mortgage contract, the lender is required to advance the total amount of the mortgage immediately, regardless of the terms of the mortgage.
  3. Under the Property Law Act, a lender cannot require the borrower to obtain the advance consent of the lender before making any alterations or improvements of the property.
  4. The mortgage contract, in addition to the common law, provides the lender with a number of options and remedies to pursue when the borrower defaults on the mortgage. It is up to the lender to choose the remedy it feels is most advantageous on the circumstances.
A
  1. The mortgage contract, in addition to the common law, provides the lender with a number of options and remedies to pursue when the borrower defaults on the mortgage. It is up to the lender to choose the remedy it feels is most advantageous on the circumstances.
73
Q

You have a partially completed appraisal report that you need to fill in. The 2,500 square foot subject property has an alarm system. The house next door is similar in all respects except for the square footage and alarm system. The 2,700 square foot comparable sold for $236,500 and does not have an alarm system. If the market value of an alarm system is $4,500 and, above a 2,000 sq. ft. benchmark, each 100 sq. ft. is worth $6,000, this comparable will have to be adjusted for an alarm system and square footage by:

  1. $0 and -$6,000 respectively.
  2. -$4,500 and +$6,000 respectively.
  3. $0 and +$12,000 respectively.
  4. +$4,500 and -$12,000 respectively.
A
  1. +$4,500 and -$12,000 respectively.
74
Q

Your client has been offered an investment opportunity that will pay her 40 quarterly payments of $1,700 and a lump sum of $12,000 at the end of 40 quarterly payments. If the interest rates are 5% per annum, compounded monthly, what is the maximum she should pay for the investment?

  1. $60,490.04
  2. $59,330.79
  3. $73,325.14
  4. $39,658.87
A
  1. $60,490.04
75
Q

A loan of $350,000 is accepted, comprised of a cash down payment of $75,000 and a mortgage loan of $275,000 at 5%, per annum, compounded semiannually. The mortgage has an amortization of 25 years, 3 year term and calls for monthly payments rounded up to the next higher dollar. Market rates for similar mortgages are currently 7.5% per annum, compounded semi-annually. What is the market value of the offer?

  1. $330,090.87
  2. $334,493.08
  3. $331,690.44
  4. $332,554.99
A
  1. $332,554.99
76
Q

Which of the following is NOT an appraisal approach to value?

  1. The income approach
  2. The redevelopment approach
  3. The direct comparison approach
  4. The cost approach
A
  1. The redevelopment approach
77
Q

The Local Government Act permits a council to enact certain bylaws relevant to planning. Which of the following areas is NOT directly regulated by local government?

  1. Zoning regulations
  2. Public health
  3. Subdivision regulation
  4. Building regulation
A
  1. Public health
78
Q

You have a partially completed appraisal report that you need to fill in. The 2,600 square foot subject property has 4 bathrooms. The house next door is similar in all respects except for the number of bathrooms and square footage. It sold for $234,000 and was adjusted +$5,700 for bathrooms and -$10,000 for square footage. If the market value of a bathroom is $5,700 and above a 1,900 sq. ft. benchmark, each 100 sq. ft. is worth $5,000, it can be concluded that this comparable has:

  1. 3 bathrooms and 2,800 square feet.
  2. 5 bathrooms and 2,400 square feet.
  3. 4 bathrooms and 2,400 square feet.
  4. 3 bathrooms and 2,600 square feet.
A
  1. 3 bathrooms and 2,800 square feet.
79
Q

Which of the following statements are FALSE?
A. The BC Supreme Court acts as a trial court only

B. An appeal from Small Claims Court is to the BC Court of Appeal.

C. The Supreme Court of Canada is the highest appellate court in Canada.

D. The BC Supreme Court is the highest trial level court in this province.

  1. Only A and B
  2. Only C and D
  3. Only A and C
  4. Only B and D
A
  1. Only A and B
80
Q

Which of the following is NOT a unity required to create a joint tenancy?

  1. title
  2. interest
  3. possession
  4. disposal
A
  1. disposal
81
Q

Which of the following is a type of municipal government?

  1. Towns
  2. Communities
  3. Improvement districts
  4. Regional districts
A
  1. Towns
82
Q

In mortgage lending, the interest adjustment period is:

  1. One period after date on which the first payment is due on.
  2. Any period of twelve consecutive months chosen by a business as a period.
  3. The period o time agreed to by both parties to a real estate transaction to do adjustment of property taxes, rent, interest, and other terms.
  4. The period of time between the date that funds are advanced and the first payment period.
A
  1. The period of time between the date that funds are advanced and the first payment period.
83
Q

You have a partially completed appraisal report that you need to fill in. The 2,000 square foot subject property has 4 bathrooms. The house next door is similar in all respects except for the number of bathrooms and square footage. The 2,100 square foot comparable sold for $326,500 and has 3 bathrooms.

If the market value of a bathroom is $2,700 and above an 1,800 sq. ft. benchmark, each 100 sq. ft. is worth $5,000, this comparable will have to be adjusted for bathrooms and square footage by:

  1. –$2,700 and +$5,000 respectively.
  2. +$5,000 and –$2,700 respectively.
  3. +$2,700 and -$5,000 respectively.
  4. +$5,400 and +$2,700 respectively.
A
  1. +$2,700 and -$5,000 respectively.
84
Q

Your Client bought a house two years ago, at which time he arranged a $210,000 mortgage. This loan was written at a nominal rate of 6.5% per annum, compounded semi-annually, with a ten year term and amortization period. Payment to be made monthly. He received an offer to buy his house for $50,000 cash and assumption of his existing mortgage. If current interest rates are 8% per annum, compounded semi-annually, for eight year term loans, what is the market value of the offer ?

  1. $268,023.90
  2. $218,023.90
  3. $246,890.11
  4. $218,812.85
A
  1. $218,812.85
85
Q

BC statute regulates the way private sector organizations to disclose personal information?

  1. Private information and Disclosure Act
  2. Private Sector Secure Protection Act
  3. Private Privacy Collection Act
  4. Private Information Protection Act
A
  1. Private Information Protection Act
86
Q

How much should an investor be willing to pay for a property that she expects to sell for $525,000 in six years if she desires a yield of J2= 5%?

  1. $391,763.08
  2. $512,195.12
  3. $390,366.84
  4. $452,705.85
A
  1. $390,366.84
87
Q

You are trying to calculate the market value of an income-producing property . In order to determine the market value, however, you must find the yield of several comparable properties and determine a market capitalization rate. The following information is for the recent sale of a similar income-producing property:

Selling Price_________________$864,000

Gross Potential Revenue ________$100,000 per annum

Operation Expenses____________$22,750 per annum

Market Vacancy Rate___________4%

What is the yield on the sale of the comparable property?

  1. 8.11722%
  2. 8.47801%
  3. 9.98964%
  4. 8.94097%
A
  1. 8.47801%

Real Estate Licence (11 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions