Lesson 6 Test

Question 1

Which of the following is the BEST description of the relationship between professionalism and ethics?

(1) Ethics is a crucial element of the larger concept of professionalism.
(2) Ethics is a core concept in the Real Estate Services Act, while professionalism is not.
(3) One can be both unprofessional and ethical at the same time.
(4) Professionalism and ethics are the exact same thing.

Answer 1

1

Question 2

Which type of misconduct, as described in the Real Estate Services Act, focuses more on the overall professionalism of a licensee, over and above technical compliance with legislation and the Rules
made under the Real Estate Services Act?

(1) Professional misconduct
(2) Lapse of character
(3) Breach of civility
(4) Conduct unbecoming a licensee

Answer 2

4

Question 3

Which of the following is one of an individual licensee’s roles in building and maintaining trust in the real estate profession?

(1) Acting in accordance with broader ethical principles
(2) Establishing strong practice standards for licensees
(3) Creating education initiatives and opportunities
(4) Setting stringent standards to enter and remain in the profession

Answer 3

1

Question 4

What is the “Headline Test”?

(1) A test that clients of a licensee can use to determine whether the licensee’s actions were professional
(2) A test that the Real Estate Council of British Columbia uses to determine whether a licensee has
committed professional misconduct
(3) A test that licensees can use to evaluate whether a decision or action aligns with their overall professionalism, that considers how they would feel if their decision or action were to appear as a headline of a newspaper or news site
(4) A test that is set out in the Rules made under the Real Estate Services Act that licensees must follow in their fulfilment of their duties to clients

Answer 4

3

Question 5

Which of the following is NOT an area of law where duties owed by licensees to their clients arise?

(1) Contract law
(2) Agency law
(3) Public law
(4) Tort law

Answer 5

3

Question 6

Ava is representing Gerome in the sale of his property. Ava receives an offer for Gerome’s property that is $100,000 below the listing price. Gerome tells Ava that he wants to accept the offer. Rather than informing the buyer of this fact, Ava tells the buyer that Gerome will not accept anything less than
$85,000 under the list price. She does this because she truly believes that the buyer will be willing to pay more, which is better for Gerome, and she wants him to be completely satisfied with her representation of him.

Which of the following duties, set out in the Rules made under the Real Estate
Services Act, has been breached?

(1) The duty to maintain confidentiality
(2) The duty to use reasonable efforts to discover relevant facts
(3) The duty to avoid conflicts of interest
(4) The duty to follow lawful instructions

Answer 6

4

Question 7

Jiaxin is assisting Harvey in the sale of his property. Jiaxin receives an offer for Harvey’s property from a good friend of hers; however, she does not mention her relationship to Harvey when she presents
the offer to him. Jiaxin has likely breached all of the following duties, set out by the Rules made under the Real Estate Services Act,

EXCEPT the duty to:
(1) maintain confidentiality
(2) act in the client’s best interests
(3) disclose conflicts of interests
(4) disclose all known material information

Answer 7

1

Question 8

Licensees who accept clients involved in transactions outside of their area of expertise primarily risk breaching:

(1) the duty of full disclosure.
(2) the duty to obey lawful instructions.
(3) the duty to act with reasonable care and skill.
(4) the duty of confidentiality.

Answer 8

3

Question 9

Kamal, a licensee, is faced with an ethical dilemma relating to something that one of his clients is
asking him to do. As part of his thinking about the dilemma, Kamal writes down the names of everyone that would be impacted by any decision he makes to resolve the dilemma.

Which step of the Framework for Ethical Decision Making is Kamal applying?

(1) Identify the stakeholders
(2) Consider the situation and identify the potential ethical issues
(3) Evaluate each alternative in terms of ethical consequences
(4) Specify feasible alternatives for evaluation

Answer 9

1

Question 10

Which of the following is NOT an explicit obligation found directly in the Rules under the Real Estate Services Act?

(1) Maintaining the confidentiality of your client’s information
(2) Advising your clients to seek independent professional advice on matters outside of your expertise
(3) Doing unto others as you would have them do unto you
(4) Acting in the client’s best interests

Answer 10

3

Question 11

In most cases, where should licensees first report an instance of misconduct observed within their brokerage?

(1) To the Real Estate Council of British Columbia
(2) To their managing broker
(3) To the Real Estate Errors and Omissions Insurance Corporation
(4) To their real estate board

Answer 11

2

Question 12

Which ethical duty in the Rules made under the Real Estate Services Act imposes a responsibility to non-clients upon licensees?

(1) The duty to use reasonable efforts to discover relevant facts
(2) The duty to act with honesty and reasonable care and skill
(3) The duty to disclose all known material information
(4) The duty to have written service agreements

Answer 12

2

Question 13

The final step of the Framework for Ethical Decision Making is to:

(1) evaluate each alternative in terms of ethical consequences.
(2) specify feasible alternatives for evaluation.
(3) make and justify your choice.
(4) identify the stakeholders.

Question 14

Evelyn is a new licensee in the Vancouver area who has an extensive network due to her previous career.
She has been flooded with business, to the point that she is feeling overwhelmed. In this
situation, what professional duty is MOST at risk of being breached?

(1) The duty to only act within the scope of authority given by the client
(2) The duty of confidentiality
(3) The duty to act with reasonable care and skill
(4) The duty to disclose all known material information

Answer 14

3

Question 15

Licensees demonstrate integrity by having accountability for their actions by:

(1) exhibiting professional courtesy to fellow licensees.
(2) not disclosing a client’s personal information, bottom line, or motivation without authorization.
(3) reporting their own mistakes to their managing broker.
(4) providing clients with information on how to get additional expertise/advice when needed.

Answer 15

3

Question 16

Which of the following is an exception to the professional duty to maintain the confidentiality of a client’s information?

(1) The licensee is required by law to disclose the information
(2) The licensee only discloses the confidential information to another person orally (rather than in
writing)
(3) The licensee feels that disclosure is in the best interests of the client
(4) The licensee discloses the confidential information by an honest mistake

Answer 16

1

Question 17

Which of the following is NOT an example of a conflict of interest in the real estate industry?

(1) A buyer’s agent is acting for two couples who are both looking for very similar residential
properties in the same area, and they both have expressed interest in the same property.
(2) A commercial agent has been offered sizable referral fees by a renovation company specializing in office space renovations in exchange for recommending clients who have recently purchased
office space through the commercial agent.
(3) A listing agent’s client is not in a hurry to sell and wants to be patient to wait for an offer at or
near the asking price, but the listing agent is hoping to sell more quickly in order to get the deal wrapped up before his vacation begins.
(4) A licensee purchases property for themselves from an unrepresented seller.

Answer 17

4

Question 18

Which of the following is TRUE with respect to the duty to report?

(1) In all cases, a licensee should first report misconduct to their managing broker.
(2) The duty to report reflects the idea that the integrity and reputation of the real estate industry is a shared responsibility between the regulators and licensees.
(3) The general duty to report is a unique duty to real estate licensees, not shared by other professions.
(4) The Real Estate Council of British Columbia will not assist licensees in deciding whether they should report certain misconduct, as this is the responsibility of the licensee to decide.

Answer 18

2

Question 19

You are a licensee who has been hired to list a property for a seller who is about to leave town for a vacation. The seller sternly tells you in writing that she wants to relax on her vacation and does not want to be contacted about any offers for her property until she is back in town in seven days. On the
second day of her vacation, you receive a very strong offer for her property that is only open for acceptance for 24 hours.

Which of the following is TRUE?

(1) Because the offer will expire before the seller returns from vacation, you must contact her to communicate the offer.
(2) This situation demonstrates the fact that, sometimes, a licensee’s duties under the
Rules conflict with each other.
(3) Not communicating the offer to the seller immediately is a serious breach of the duty to avoid conflicts of interest.
(4) Telling the buyer’s agent that the seller instructed you not to present her with any offers until
she returns from her vacation is a clear breach of the duty of disclosure.

Answer 19

2

Question 20

John owns a condominium in Kitsilano that he is looking to sell. Despite being an inexperienced licensee working on your first sale, John has agreed to list the property with you. Soon after the property is listed, you show the townhouse to Jennifer, an unrepresented prospective purchaser.
Jennifer loves the townhouse and wants to submit an offer right away. Jennifer informs you that the funds for the purchase are currently held in a complicated blind trust managed by an offshore corporate trustee. She says not to worry and that with your help, the financing can be arranged within a week. Based on your understanding of your ethical obligations, what should you do before a contract of purchase and sale is drafted?

(1) Delay the sale so that you can learn more about this type of financing, in order to act in the best interests of your client
(2) Refuse to present the offer to John, as it would be a risky transaction for him
(3) Recommend to Jennifer that she should officially contract you to be her agent, so that she is better protected in this transaction
(4) Seek assistance from a colleague or decline to act for John, in order to meet your duty to advise your client to seek independent professional advice on matters outside your expertise