Test Lesson 1 Flashcards
After buying her fourth car, Jessie decides that it is time to build a new garage. Although she is not a
professional, she is handy with tools and decides to design and build the garage herself. Once the
garage is built, Jessie invites her neighbour, Steve, to her house to view her new garage. Steve thinks
that the garage is unsightly and demands that she tear it down. Jessie, of course, refuses. That night,
Steve drives his car through the garage, destroying months of hard work. Jessie successfully sues Steve
and obtains an award of $80,000 for damages. Steve feels that the decision of the court is unfair and
refuses to pay it. Which of the following steps may Jessie take?
(1) Jessie can send a writ of execution to Steve and then personally seize and sell enough of his
property to pay the judgment.
(2) Jessie can apply to have a garnishing order served on Steve’s employer, ordering the employer to
pay all of his wages into the court. She can then apply to have all of the money paid out to her.
(3) Jessie can register her judgment in the land title office against Steve’s title and apply to the land
title registrar for a judicial sale of Steve’s property; after the payment of prior charges on title, the
proceeds will go towards paying the judgment.
(4) Jessie may do none of the above.
4
Which of the following statements respecting aspects of the British Columbia civil court system would
be considered accurate?
A. The next step for a disappointed litigant in a small claims dispute would be to appeal the small
claims court decision to the BC Court of Appeal.
B. A matter brought before the BC Court of Appeal will be settled by a decision delivered by the
majority of the judges after they have listened again to all of the evidence.
C. A BC Supreme Court judge can only hear cases involving amounts over $35,000.
D. A litigant can bring his or her case no further than the BC Court of Appeal, unless leave to appeal
to the Supreme Court of Canada is granted.
(1) All of the above
(2) B and C only
(3) C and D only
(4) D only
4
Which of the following statements concerning disclosure statements in British Columbia is FALSE?
(1) A disclosure statement must be provided by a developer to a buyer where an offer of sale or lease
relates to a time share interest in a development unit.
(2) A disclosure statement must indicate that the purchaser has the right to rescind the purchase
agreement by serving written notice of the rescission on the developer.
(3) A disclosure statement must be in the form and include the content required by the British
Columbia Financial Services Authority.
(4) One of the supporting documents which must accompany the disclosure statement is a
certificate from a lawyer who is a member of the Law Society of British Columbia confirming
that a true copy of the disclosure statement will be delivered to the prospective purchaser or
lessee.
4
Elaine obtained a judgment against Jerry for $35,000. Several months have passed and Jerry continues
to refuse to pay Elaine anything. Which of the following steps is open to Elaine to enforce the
judgment?
A. Elaine may register the judgment as a charge on Jerry’s land; this would prevent any sale of it
from completing because title to the property could not be transferred until the judgment was
satisfied.
B. Elaine may apply to have a garnishing order served on Jerry’s employer, ordering the employer
to pay all of Jerry’s wages into court; Elaine could then apply to have that money paid out to her.
C. Elaine may send a writ of execution to Jerry and then personally seize and sell enough of his
assets to satisfy the judgment.
D. Elaine may register her judgment in the land title office and apply to the court for a judicial sale
of Jerry’s property, the proceeds of which would go towards paying off the judgment, following
payment of prior charges.
(1) All of the above
(2) A and B only
(3) C and D only
(4) D only
4
Which of the following statements is FALSE with respect to the British Columbia Financial Services
Authority (BCFSA)?
(1) BCFSA has the authority to develop and amend the REALTOR® Code respecting ethical
standards.
(2) In fulfilling its duties under the Real Estate Services Act, BCFSA may refuse to issue a license to
an unqualified applicant.
(3) As part of determining whether an applicant for a licence is of a “good reputation”, BCFSA
requires applicants to submit an original criminal record check.
(4) One of BCFSA’s powers is to impose administrative penalties on licensees who have contravened
the Real Estate Services Act
1
Which of the following statements is TRUE?
A. The provincial government has exclusive responsibility for such areas as the administration of
justice within the province, criminal matters, and education.
B. The federal government has exclusive responsibility over marriage and divorce, postal services
and civil rights.
C. The residual power to legislate over areas not specifically covered in the constitution is left with
the municipal governments.
D. Where the common law does not provide an answer to a legal question, the courts must then
refer to statute law for guidance.
(1) A, B, and C only
(2) A and B only
(3) All of the above
(4) None of the above
4
An examination for discovery:
(1) usually takes place before the notice of civil claim is filed so that a person can ascertain whether
a cause of action exists.
(2) may be a major factor in the settlement of a dispute.
(3) takes place before a judge, with all parties giving evidence under oath.
(4) is the process under which each party is required to provide all relevant documents to the other
party.
2
Deepak has just obtained his representative level licence for real estate trading services. Which of the
following is TRUE?
(1) As part of obtaining his representative level licence, Deepak was required to have worked in the
real estate sales industry for at least two years during the five years before the date of his
application.
(2) Deepak’s key responsibilities under the Rules include ensuring that the trust accounts and
records of the brokerage are maintained in accordance with the Real Estate Services Act and the
Real Estate Services Rules.
(3) Key responsibilities placed on Deepak include the duty to keep his managing broker informed of
the business activities he performs on behalf of the brokerage and the duty to promptly respond
to any inquiry addressed to him by his managing broker.
(4) Deepak is permitted to work with other licensees in a team, even if those other licensees are
licensed in relation to different brokerages, but only if the managing brokers of the brokerages
involved agree.
3
Under the Real Estate Services Act, disciplinary action against a licensee normally begins with an
investigation by the British Columbia Financial Services Authority (BCFSA). Which of the following
statements concerning an investigation to determine if disciplinary action should be taken against a
licensee is TRUE?
A. BCFSA may conduct an investigation to determine whether a licensee may have committed
professional misconduct or conduct unbecoming a licensee.
B. BCFSA can conduct an investigation only at the request of the Superintendent of Real Estate.
C. At any time during business hours, BCFSA can inspect the records that are located on the
business premises of a licensee.
D. BCFSA may only conduct an investigation if it has received a written complaint.
(1) A, B, and C only
(2) A and C only
(3) B and D only
(4) All of the above
2
Xavier has successfully sued Yolanda in the Supreme Court of British Columbia. The court has
ordered Yolanda to pay court costs. Which of the following statements is FALSE?
(1) Court costs are always awarded against unsuccessful litigants like Yolanda.
(2) Court costs will only cover some of Xavier’s legal fees.
(3) Court costs are not the same as legal fees.
(4) In general, the possibility of being ordered to pay court costs helps to discourage people from
bringing weak cases before the courts.
1
Joshua wishes to operate a corner store out of the basement of his Richmond home. However, he is not
sure if this would be against the law nor is he sure of who would be responsible for laws governing
this situation. When Joshua questions his lawyer, she makes the following correct response.
(1) The matter would be governed by a zoning bylaw created by municipal authorities who derive
their power from the federal government.
(2) The matter is governed by the law dealing with equitable rights which puts fairness above all
else.
(3) Joshua must deal with municipal authorities, a third level of government which derives its
powers from the provincial government.
(4) Joshua should go ahead with his plans as ignorance of the law is a valid defence to any legal
action.
3
Which of the following statements is TRUE?
(1) An appeal of the British Columbia Financial Services Authority’s (BCFSA’s) decision to discipline
a licensee will be heard by the Commercial Appeals Commission.
(2) An appeal of BCFSA’s decision to discipline a licensee will be heard by the British Columbia
Court of Appeal.
(3) An appeal of BCFSA’s decision to discipline a licensee will be heard by the Financial Services
Tribunal.
(4) A licensee must send notice within 60 days of the decision in order to appeal a decision of
BCFSA.
3
Which of the following is an aim of the Real Estate Services Act?
(1) The Real Estate Services Act aims to ensure that real estate licensees are reasonably competent in
providing real estate services.
(2) The Real Estate Services Act aims to ensure that real estate licensees are of good reputation.
(3) The Real Estate Services Act aims to discipline and, where necessary, re-educate real estate
licensees if they breach the provisions of the Act.
(4) All of the above are aims of the Real Estate Services Act.Which of the following is an aim of the Real Estate Services Act?
4
During which one of the stages of the trial process does the plaintiff (or their counsel) examine the
opposing party under oath?
(1) Pleadings
(2) Discovery
(3) Judgment
(4) Execution
2
Which of the following is TRUE with respect to the Real Estate Errors and Omissions Indemnity Plan?
(1) The key purposes of the Indemnity Plan are to provide an affordable method of protecting
licensees from financial loss due to errors and omissions and reduce the risk that a consumer
suffering a loss as the result of a licensee’s error(s) or omission(s) will receive no compensation
due to the licensee’s lack of funds.
(2) The Indemnity Plan will cover a licensee’s liability up to a limit of $2 million.
(3) The Indemnity Plan requires the Real Estate Errors and Omissions Insurance Corporation to
obtain the consent of the licensee in order to settle a claim involving that licensee.
(4) The Indemnity Plan will cover disciplinary fines imposed by BCFSA up to a limit of $1 million.
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