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TRADING SERVICES > RETS / CHAPTER 11 > Flashcards

RETS / CHAPTER 11 Flashcards

1
Q

TRUE OR FALSE: A contract of purchase and sale can always be assigned?

A

ANSWER: FALSE

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2
Q

TRUE OR FALSE? According to the Competition Act representations in print, oral, and digital form, including those posted to social media websites, are all subject to the Act.

A

ANSWER: TRUE

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3
Q

COMPETE THE SENTENCE: An amendment to a contract of purchase and sale is not legally binding on the vendor and purchaser until _ _ _ _

A

An amendment to a contract of purchase and sale is not legally binding on the vendor and purchaser until finalized in writing and signed by all parties to the original contract.

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4
Q

A _______ ___________ [two word answer] refers to an event or state of affairs that is required before something else will occur.

A

ANSWER: CONDITION PRECEDENT

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5
Q

TRUE OR FALSE? According to common law contracts do not have to be in writing?

A

ANSWER: TRUE

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6
Q

TRUE OR FALSE? In MOST CASES contracts dealing with real estate must be in writing in order to be enforceable.

A

ANSWER: TRUE

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7
Q

TRUE OR FALSE? Section 59 of the Law and Equity Act DOES NOT apply to leases of land less than 5 years.

A

ANSWER: FALSE
S59 does not apply to a lease of land for a term of 3 years or less

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8
Q

A(n) _________ _____________ (two word answer) is a contract between the vendor and a real estate brokerage.

A

ANSWER: listing agreement

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9
Q

______ ______ (two word answer) eliminates the conflict that previously arose when two licensees in the same brokerage represented both the seller and the buyer in a transaction .

A

ANSWER: Designated Agency

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10
Q

TRUE OR FALSE? The purchaser is not a party to the listing agreement

A

ANSWER: True

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11
Q

FILL IN THE BLANK: The _ _ _ _ _ _ _ is a federal statute designed to eliminate privately imposed restraints on trade and encourage competition.

A

ANSWER: COMPETITION ACT

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12
Q

Fill In The Blank: The Competition Act, prohibits the making of a representation to the public, in any form whatsoever, that is false or misleading in a _______ ________

A

ANSWER: MATERIAL RESPECT

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13
Q

TRUE OR FALSE? Where a purchaser has been found who met the terms of the listing the licensee has discharged his or her obligation under the listing agreement and in most cases would be entitled to a commission.

A

ANSWER: TRUE

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14
Q

COMPLETE THE SENTENCE: To trigger the vendor’s obligation to pay the commission, the licensee must _ _ _ _ _

A

Licensee must produce a purchaser whose offer strictly complies with the terms of the listing agreement.

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15
Q

**QUICK NOTE: RESTRAINT OF TRADE

a breach of section 45 of the Act would include

  • fix specific OR minimum commission rates
  • allocate territories or customers
  • fix the “split” between listing and selling licensees
  • prohibit the advertising of commission rates**
A

**QUICK NOTE: RESTRAINT OF TRADE

a breach of section 45 of the Act would include

  • fix specific OR minimum commission rates
  • allocate territories or customers
  • fix the “split” between listing and selling licensees
  • prohibit the advertising of commission rates**
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16
Q

To determine whether the representation is “false or misleading in a material respect” the courts will employ a two-step test. Outline the two step test.

A

[1] Court will consider both the literal meaning and the “general impression”

[2] Court will determine whether this impression is misleading in a material respect​

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17
Q

QUICK NOTE / MISLEADING ADVERTISING The requirement that the representation be false in a material respect refers to the extent that the representation influenced the person to whom it was made in deciding whether or not to purchase the product or service.

A

QUICK NOTE / MISLEADING ADVERTISING The requirement that the representation be false in a material respect refers to the extent that the representation influenced the person to whom it was made in deciding whether or not to purchase the product or service.

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18
Q

**QUICK NOTE: SECTION 76 OF COMP ACT

Section 76 of the Competition Act makes it a civil offence to discourage the reduction of prices, place upward pressure on prices, or discriminate against someone because of their low pricing policy, by means of threat, promise or agreement.**

A

**QUICK NOTE: SECTION 76 OF COMP ACT

Section 76 of the Competition Act makes it a civil offence to discourage the reduction of prices, place upward pressure on prices, or discriminate against someone because of their low pricing policy, by means of threat, promise or agreement.**

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19
Q

_____ ________ requires organizations to create internal processes to handle inquiries, complaints and requests from people for access to their own information.

A

ANSWER: PRIVACY LEGISLATION

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20
Q

This is a condition in a contract which calls for the happening of some event, or performance of some act, before the agreement becomes binding on the parties.

A

ANSWER: CONDITION PRECEDENT

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21
Q

TRUE OR FALSE? A completed statement of adjustment must accompany the Purchase and Sale Agreement.

A

ANSWER: FALSE

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22
Q

The features that must be stated with certainty on a Contract of Purchase and Sale are the three P’S _____, ______, _____.

A

ANSWER: the parties, the property and the price.

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23
Q

TRUE OR FALSE? A “subject to clause” is a condition precedent.

A

ANSWER: TRUE

24
Q

TRUE OR FALSE? Unless a deposit is paid when an offer to purchase is made, there is not a binding contract for purchase and sale.

A

ANSWER: FALSE

25
Q

TRUE OR FALSE? The purchaser of a listing may offer the exact terms and price that a vendor is seeking, but the vendor does not have to accept the offer?

A

ANSWER: TRUE

26
Q

This is a fundamental term of a contract, a breach of which allows the injured party to terminate the contract and/or sue for damages or specific performance.

A

ANSWER: CONDITION

27
Q

True or False? A person may be found guilty under the Competition Act even though every part of an advertisement is literally true but the general overall impression is misleading

A

ANSWER: TRUE

28
Q

Licensees hold deposits as a __________.

A

ANSWER: STAKEHOLDER

29
Q

TRUE OR FALSE? A binding contract for purchase and sale cannot be made unless a deposit is made with the offer.

A

ANSWER: FALSE

30
Q

A _ _ _ _ is a promise that forms part of the contract.

A

ANSWER: TERM

31
Q

TRUE OR FALSE? A contract respecting land can never be enforced against a party who has not signed it.

A

ANSWER: FALSE

32
Q

This is a subsidiary term of a contract, a breach of which allows the injured party to sue for damages but does not allow him or her to terminate the contract

A

ANSWER: WARRANTY

33
Q

What are the remedies for breach of condition?

A

ANSWER: innocent party can treat the contract at an end and, if certain criteria are met, and may sue for damages.

34
Q

TRUE OR FALSE? A binding contract for purchase and sale cannot be made unless a deposit is made with the offer.

A

ANSWER: FALSE

35
Q

FILL IN THE BLANK: The standard contract treats the deposit provision as a _ _ _ _ since the buyer’s failure to comply with the deposit requirements entitles the seller to terminate the contract.

A

ANSWER: CONDITION

36
Q

COMPLETE THE SENTENCE: Caution must be used when changes are made to an accepted offer of purchase and sale, as the change may be interpreted as a _ _ _ _

A

ANSWER: as a breach of the existing contract.

37
Q

This occurs when one party to an existing contract hands off the contract’s obligations and benefits to another party.

A

ANSWER: ASSIGNMENT OF THE CONTRACT

38
Q

TRUE OR FALSE? There is no binding contract unless a deposit is paid when the offer is made.

A

ANSWER: False

39
Q

This is a clause contained in a contract for purchase or resale of land which allows a party to invoke a time period in which a condition precedent must be removed.

A failure to remove the condition precedent within the time period would result in the termination of the contract

A

ANSWER: Time Clause

40
Q

COMPLETE THE SENTENCE: A licensee who seeks an amendment on behalf of a party must first confirm _ _ _ _ _

A

ANSWER: A licensee who seeks an amendment on behalf of a party must first confirm with the other parties that any discussions about the proposed change will not terminate the existing contract.

41
Q

QUICK NOTE: AMENDING A CONTRACT OF PURCHASE & SALE

Every party to the agreement must expressly approve any amendment to it. Once all parties have agreed on the exact nature of the amendment, it must be put into writing and signed by all parties to the original contract of purchase and sale.

A

QUICK NOTE: AMENDING A CONTRACT OF PURCHASE & SALE

Every party to the agreement must expressly approve any amendment to it. Once all parties have agreed on the exact nature of the amendment, it must be put into writing and signed by all parties to the original contract of purchase and sale.

42
Q

COMPLETE THE SENTENCE:A contract of purchase and sale may be assigned provided _ _ _ _

A

An assignment is permissible provided that the assignment does not prejudice the rights of the vendor and the contract does not prohibit assignment.

43
Q

True or False? Commission rates must be stipulated in the contract of purchase & sale?

A

ANSWER: FALSE

44
Q

What remedies are available to a vendor where a purchaser refuses to perform?

A

ANSWER: specific performance and/or damages

45
Q

TRUE OR FALSE? A “representation to the public” would include any print, radio or television advertising, but would not include oral representations made privately to an individual purchaser.

A

ANSWER: FALSE

46
Q

QUICK NOTE / the forms of advertising covered by section 52 are extremely broad, including representations “by any means whatsoever”. This means that representations in print, oral, and digital form, including those posted to social media websites, are all subject to the Act. Licensees must be careful to ensure that the literal meaning and the general impression conveyed by all representations.

A

QUICK NOTE / the forms of advertising covered by section 52 are extremely broad, including representations “by any means whatsoever”. This means that representations in print, oral, and digital form, including those posted to social media websites, are all subject to the Act. Licensees must be careful to ensure that the literal meaning and the general impression conveyed by all representations.

47
Q

TRUE OR FALSE / A contract respecting land must be in writing or it is void.

A

ANSWER: FALSE

48
Q

TRUE OR FALSE? A contract of purchase and sale is a binding contract if properly drafted.

A

ANSWER: TRUE

49
Q

TRUE OR FALSE? The rate of commission payable is NOT required on a contract of purchase and sale?

A

ANSWER: TRUE

50
Q

TRUE OR FALSE? The completed statements of adjustment is required to create an enforceable contract of purchase and sale?

A

ANSWER: FALSE

51
Q

TRUE OR FALSE? When completing a listing contract, a licensee should rely on all of the information provided by the vendor.

A

ANSWER: FALSE

52
Q

Explain how a licensee should obtain the information required to complete a listing agreement?

A

It is essential that the listing contract accurately describes the property and is signed by all of the owners.

Licensee should independently check information with the appropriate authority where possible.

53
Q

COMPLETE THE SENTENCE / A time clause is a clause that gives the _______ the right to demand that the _________ remove a condition precedent earlier than at first expected.

A

A time clause is a clause that gives the vendor the right to demand that the purchaser remove a condition precedent earlier than at first expected.

54
Q

QUICK NOTE / The right to invoke a time clause arises only upon the vendor receiving another offer after entering the original contract of purchase and sale. If there is a 72-hour clause in the original contract of purchase and sale, the vendor can notify the purchaser to remove the condition precedent within the next 72 hours or the contract terminates. The time period does not have to be 72 hours; a different period may be negotiated.

A

QUICK NOTE / The right to invoke a time clause arises only upon the vendor receiving another offer after entering the original contract of purchase and sale. If there is a 72-hour clause in the original contract of purchase and sale, the vendor can notify the purchaser to remove the condition precedent within the next 72 hours or the contract terminates. The time period does not have to be 72 hours; a different period may be negotiated.

55
Q

COMPLETE THE SENTENCE: A vendor refuses to sign a subject removal form to strike out a condition precedent from a contract of purchase and sale. Assuming that the condition was made exclusively for the benefit of the purchaser, the agreement is ____________.

A

ANSWER: BINDING

56
Q

COMPLETE THE SENTENCE: When the licensee receives a deposit in a typical real estate transaction the licensee holds it as _____________.

A

ANSWER: a steakholder

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