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TRADING SERVICES > RETS / CHAPTER 2 / PART 1 > Flashcards

RETS / CHAPTER 2 / PART 1 Flashcards

1
Q

The purpose of the Real Estate Services Act is to protect the public by . . . [List 3]

A

[1] setting minimum reasonable competency

[2] setting standards of conduct

[3] appointing a regulator, BCFSA, and empowering the Superintendent (from within BCFSA), to perform key regulatory functions under RESA.

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2
Q

A purchaser may rescind the purchase agreement by serving written notice of the rescission on the developer within _____ days

A

ANSWER: SEVEN

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3
Q

Real estate services is defined by the Act as . . . [List 3]

A

[1] rental property management services,

[2] strata management services, or

[3] trading services.

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4
Q

True or False?

Showing real estate is considered a “Trading Service”?

A

Answer: True

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5
Q

True or False?

Receiving deposit money paid in respect of the real estate is considered a “Trading Service”

A

Answer: True

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6
Q

Complete the Sentence

The _ _ _ _ is authorized to suspend or cancel a licence.

A

Answer:

The British Columbia Financial Services Authority (BCFSA) is authorized to suspend or cancel a license.

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7
Q

True or False

Collecting rents or security deposits for the use of the real estate is a “Trading Service”?

A

Answer: False

Collecting rents is a Rental Management Service, requiring a license.

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8
Q

Complete the Sentence

Employees of the _____ to a real estate transaction are permitted to conduct Real Estate Services without having to obtain a license?

A

Answer: Principal

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9
Q

True or False?

Individuals who provide appraisals, or property inspections are required to obtain the an Appraisal License?

A

Answer: False

Note: There is no licensing requirements for appraisers or property inspectors.

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10
Q

Is the construction of a commercial office building considered a real estate service?

A

**Answer:

No**

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11
Q

True or False?

A practising lawyer, in respect of real estate services provided in the course of the person’s practice is exempt from the requirements of the Real Estate Services Act?

A

Answer: True

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12
Q

True or False?

An unlicensed assistant may host an open house?

A

Answer: False

Hosting an open house requires a license.

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13
Q

**True or False?

An unlicensed assistant may renew a listing contract on behalf of the agent.**

A

**Answer: False

That activity requires a license.**

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14
Q

**True or False?

An unlicensed assistant may unlock a property to let prospective buyers enter.**

A

Answer: True

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15
Q

**True or False?

An unlicensed assistant may witness signatures?**

A

Answer: True

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16
Q

QUICK NOTE / Section 5-6 of RESA prohibits licensees from making a PROMISE to acquire, or resell or otherwise dispose of, the real estate or any other real estate;

UNLESS at the time the licensee makes the promise, he or she gives a signed statement containing the details of the promise to the person to whom it is made, and including the signature of any other party involved in the promise.

A

QUICK NOTE / Section 5-6 of RESA prohibits licensees from making a PROMISE to acquire, or resell or otherwise dispose of, the real estate or any other real estate;

UNLESS at the time the licensee makes the promise, he or she gives a signed statement containing the details of the promise to the person to whom it is made, and including the signature of any other party involved in the promise.

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17
Q

List the 3 objectives of the Real Estate Council?

A

[1] Administering the Real Estate Services Act

[2] Advancing competency of licensees

[3] Protecting the public interest in relation to the conduct and integrity of its licensees.

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18
Q

**Complete the Sentence:

The _ _ _ _ is responsible for issuing and renewing all licences under the Real Estate Services Act.**

A

Answer:

The Real Estate Council is responsible for issuing and renewing all licences under the Real Estate Services Act.

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19
Q

**Complete the Sentence:

The Real Estate Council is made up of __ (#) members, __ (#) of whom are elected by licensees and __ (#) members who are appointed by the Lieutenant Governor in Council**

A

**Answer:

The Real Estate Council is made up of 16 members, 13 of whom are elected by licensees and three members who are appointed by the Lieutenant Governor in Council**

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20
Q

**Complete the Sentence

The _____ receives the interest payable on all brokerage trust accounts held in savings institutions except separate trust accounts maintained for specific clients.​**

A

**Answer:

The Real Estate Foundation receives the interest payable on all brokerage trust accounts held in savings institutions except separate trust accounts maintained for specific clients.**

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21
Q

**Complete the Sentence

The pupose of the ______ is to carry out professional education, real estate law reform, and real estate research**

A

**Answer:

Real Estate Foundation**

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22
Q

**Complete the Sentence

The _____ Corporation was created as an affordable method of protecting licensees from financial loss due to errors and omissions.**

A

**Answer:

The E&O Insurance Corporation was created as an affordable method of protecting licensees from financial loss due to errors and omissions.**

23
Q

**True or False

Errors and Omissions Insurance is compulsory?**

A

Answer: True

24
Q

**This organization:

[1] Is NOT created by the Real Estate Services Act
[2] Represents the interests of real estate boards and Realtors,
[3] Develops continuing education courses.**

A

**Answer:

The British Columbia Real Estate Association (BCREA).**

25
Q

**Complete the Sentence

A _ _ _ _is a licensee on behalf of which other licensees must provide real estate services.**

A

**Answer:

A brokerage is a licensee on behalf of which other licensees must provide real estate services.**

26
Q

**Complete the Sentence

A brokerage must have a _ _ _ .**

A

**Answer:

A brokerage must have a managing broker**

27
Q

Complete the Sentence:

A brokerage may only provide real estate services that are permitted by _ _ _ .

A

**Answer:

A brokerage may only provide real estate services that are permitted by the licence of a managing broker who is licensed to the brokerage.**

28
Q

**True or False?

Generally, a managing broker may only be licensed in relation to one brokerage?**

A

Answer: True

29
Q

Complete the Sentence:

The real estate services that a _ _ _ _ is permitted to provide determine the real estate services that the _ _ _ that employs the managing broker may provide.

A

Answer:

The real estate services that a MANAGING BROKER is permitted to provide determine the real estate services that the BROKERAGE that employs the managing broker may provide.

30
Q

**A brokerage must, within 120 days after the end of each fiscal year of the brokerage, file with the Council:

[List 3]**

A

[1] financial statements

[2] accountant’s report

[3] brokerage activity report.

31
Q

**True or False?

The licensee must not enter into an agency relationship unless he or she can render a skilled and conscientious service to the principal.**

A

**Answer:

True**

32
Q

**Notes / Real Estate Services Act / Rule 5-10

The licensee must make clear for which party he or she is acting and not receive compensation from more than one party except with the full knowledge and consent of all parties to the transaction.**

A

**Notes / Real Estate Services Act / Rule 5-10

The licensee must make clear for which party he or she is acting and not receive compensation from more than one party except with the full knowledge and consent of all parties to the transaction.**

33
Q

What must happen when a signed acceptance of an offer is received by a licensee?

A

As soon as a licensee has obtained a signed acceptance of an offer to acquire or dispose of real estate, he or she must promptly deliver a copy of this signed acceptance to each of the parties to the trade in real estate, as well as to the related brokerage of the licensee.

34
Q

**TRUE OR FALSE?

When applying for a managing broker’s license, the applicant must submit his/her personal financial statements.**

A

**Answer: That statement is false.
When applying for a managing broker license, the applicant will need to have achieved the required educational and experience requirements.

There is NO requirement to submit financial statements for a managing broker’s license.**

35
Q

**True or False

The Real Estate Council collects premiums on behalf of the Real Estate Errors and Insurance Corporation?**

A

Answer: True

36
Q

**Complete the Sentence

A licensee must not ____ any party to an agreement for a trade in real estate to break the agreement for the purpose of entering into an agreement with another party.**

A

**Answer:

A licensee must not INDUCE any party to an agreement for a trade in real estate to break the agreement for the purpose of entering into an agreement with another party.**

37
Q

**True or False?

The Real Estate Council is made up of civil servants from the Government of BC?**

A

**Answer:

False.

The Real Estate Council is made up of licensees, brokers and lay people.**

38
Q

**True or False?

To qualify for a managing broker’s license in BC a person must have three years of licensed experience in BC?**

A

**Answer:

That statement is FALSE.

Previous experience in B.C. - In order for an individual to be licensed for the first time as a managing broker or associate broker, the applicant must have been providing real estate services as a licensee for at least TWO YEARS during the 5 years before the date of the application.**

39
Q

QUICK NOTE / In order to be licensed for the first time as a MANAGING BROKER or ASSOCIATE BROKER, the licensee must have been providing real estate services as a licensee in a Canadian province or Yukon for at least TWO YEARS during the five years before the date of the application.

A

QUICK NOTE / In order to be licensed for the first time as a MANAGING BROKER or ASSOCIATE BROKER, the licensee must have been providing real estate services as a licensee in a Canadian province or Yukon for at least TWO YEARS during the five years before the date of the application.

40
Q

**True or False?

To qualify for a managing broker’s license the applicant must be at least 18.**

A

**Answer: FALSE

The applicant must be at least 19 years old.

Please note other requirements:

[1] The applicant must be of good reputation.
[2] Applicants must meet the educational and experience requirements.**

41
Q

Constructing a commercial office is considered a “real estate service”

A

ANSWER: FALSE

42
Q

This is the unmaking, or an undoing of the contract from the beginning, as opposed to a termination.

A

ANSWER: RECISSION

43
Q

QUICK NOTE / A purchaser may rescind the purchase agreement by serving written notice of the rescission on the developer within seven days after the later of:

1. the date that the purchase agreement was made; or

2. the date that the developer obtained a written statement from the purchaser, acknowledging that the purchaser has had an opportunity to read the disclosure statement.

A

QUICK NOTE / A purchaser may rescind the purchase agreement by serving written notice of the rescission on the developer within seven days after the later of:

1. the date that the purchase agreement was made; or

2. the date that the developer obtained a written statement from the purchaser, acknowledging that the purchaser has had an opportunity to read the disclosure statement.

44
Q

QUICK NOTE / Development property means any of the following:
5 or more subdivision lots in a subdivision
5 or more bare land strata lots
5 or more strata lots in a stratified building;

A

QUICK NOTE / Development property means any of the following:
5 or more subdivision lots in a subdivision
5 or more bare land strata lots
5 or more strata lots in a stratified building;

45
Q

QUICK NOTE / Development property means any of the following:

2 or more cooperative interests
5 or more time share interests
2 or more shared interests in land in the same parcel or parcels of land; or
5 or more leasehold units

A

QUICK NOTE / Development property means any of the following:

2 or more cooperative interests
5 or more time share interests
2 or more shared interests in land in the same parcel or parcels of land; or
5 or more leasehold units

46
Q

TRUE OR FALSE? A developer who markets a development property in a single transaction is exempt from the marketing requirements

A

ANSWER: TRUE

47
Q

COMPLETE THE SENTENCE / A “development unit” is defined in REDMA to mean _ _ _ _ _ _

A

ANSWER / A “development unit” is defined in REDMA to mean a subdivision lot, bare land strata lot, strata lot, cooperative interest, time share interest, a shared interest in land or a leasehold unit, provided they are located in a development property.

48
Q

TRUE OR FALSE? The Real Estate Council is made up of the BC Real Estate Boards?

A

ANSWER: FALSE

49
Q

TRUE OR FALSE? The Real Estate Council may discipline a licensee by suspending the licensee from the Multiple Listing Service.

A

ANSWER: FALSE

50
Q

FILL IN THE BLANK: The _________________ can refuse to issue or renew a licence. If the Council determines that the licensee is not suitable to be licensed

A

ANSWER: THE REAL ESTATE COUNCIL

51
Q

QUICK NOTE / The best example of a “stakeholder” is a person who holds money until the outcome of a bet is known. Such a person does not hold it on behalf of one of the parties - a stakeholder is the “middleman”.

A

QUICK NOTE / The best example of a “stakeholder” is a person who holds money until the outcome of a bet is known. Such a person does not hold it on behalf of one of the parties - a stakeholder is the “middleman”.

52
Q

QUICK NOTE /

Because the brokerage holds the deposit as a stakeholder, a seller cannot successfully demand payment of the deposit to him or her before the transaction is completed, nor can a buyer successfully demand the return of the deposit if he or she does not want to proceed with the transaction.

A

QUICK NOTE /

Because the brokerage holds the deposit as a stakeholder, a seller cannot successfully demand payment of the deposit to him or her before the transaction is completed, nor can a buyer successfully demand the return of the deposit if he or she does not want to proceed with the transaction.​

53
Q

List and explain 3 rental property management services

A

(a) trading services in relation to the rental of the real estate;

(b) collecting rents or security deposits for the use of the real estate;

  • *(c) managing the real estate on behalf of the owner by:**
  • *(i) making payments to third parties;**
  • *(ii) negotiating or entering into contracts;**
  • *(iii) supervising employees or contractors hired or engaged by the owner; or**
  • *(iv) managing landlord and tenant matters.**
54
Q

Role of the managing broker?

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**

TRADING SERVICES (12 decks)

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