Assignment 1

Question 1

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 their case no further than the BC Court of Appeal, unless leave to appeal to the Supreme Court of Canada is granted.

Answer 1

Correct Answer: 4

Statement (A) is incorrect because appeals from the Small Claims Court are heard in the BC Supreme Court.

Statement (B) is
incorrect because evidence is not reheard at the BC Court of Appeal; only matters of law are considered.

Statement (C) is incorrect because, while Small Claims Courts have jurisdiction to hear cases involving monetary amounts up to $35,000, the
Supreme Court has jurisdiction to hear cases involving any amount, including cases for claims of $35,000 or less.

Therefore, the correct solution is Option (4): D only.

Question 2

Question 3

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.

Answer 2

Correct Answer: 4

A disclosure statement must be in the form required by BCFSA but it need not contain a certificate from a lawyer. The other
options are all true.

Question 3

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

Answer 3

Correct Answer: 4

A judgment creditor may apply to court for a judicial sale of the land. Registering a judgment against land does not prevent the subsequent sale of the land; garnishment is only available against a portion of a judgment debtor’s wages; and, seizure and sales is not personally effected by a private judgment creditor, but rather through the sheriff’s office

Question 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

Answer 4

Correct Answer: 4
A judgment creditor may apply to court for a judicial sale of the land. Registering a judgment against land does not prevent the
subsequent sale of the land; garnishment is only available against a portion of a judgment debtor’s wages; and, seizure and sales
is not personally effected by a private judgment creditor, but rather through the sheriff’s office

Question 5

Question 7
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.

Answer 5

Correct Answer: 2
Answer 4 is incorrect because an examination for discovery is different from a discovery of documents. Discovery of documents
is the process under which each party is required to provide all relevant documents to the other party. Examination for discovery
is a “mini-trial” that takes place between the parties to the dispute and their lawyers. Each party can examine the opposite party
under oath, and the evidence is recorded by a court reporter.

Question 6

Question 10
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.

Answer 6

Correct Answer: 1

Court costs do not automatically get awarded against the losing party, but rather, are awarded at the discretion of the court and may be awarded to either party. Court costs are meant to partially reimburse the legal expenses of the party to whom they are awarded; therefore, they are not the same as legal fees. Court costs discourage people from bringing or defending weak cases before the courts.

Question 7

Question 11

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.

Answer 7

Correct Answer: 3

Option (1) is incorrect because the municipal governments derive their power from the provincial governments, not from the
federal government.

Option (2) is not applicable as this is a municipal matter governed by the relevant legislation.

Finally, and of particular importance to you as a future real estate licensee, ignorance of the law is never a defence.

Question 8

Question 12
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.

Answer 8

Correct Answer: 3
Under the Real Estate Services Act, decisions of BCFSA can be appealed to the Financial Services Tribunal. To appeal a decision, a party must send notice of appeal to the Tribunal within 30 days of the date of the decision.

Question 9

Question 13

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 provision’s of the Act.
4. All of the above are aims of the Real Estate Services Act.

Answer 9

Correct Answer: 4

The overall purpose of the Act is to protect the public and this is achieved in two ways.

First, the Act ensures that people wanting to enter the real estate profession (that is, to obtain a real estate licence) must have particular knowledge and be of good character.

Second, to ensure that the licensees remain competent, the Act provides disciplinary options to BCFSA for a licensee’s failure to live up to certain standards of performance and ethics. These options include the possibility of an order to take further education or training.

Question 10

Question 14

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

Answer 10

Correct Answer: 2
In discovery, more specifically, examination for discovery, each party is examined under oath by the opposing party (or their
counsel).

Question 11

Question 15

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.

Answer 11

Option (2) is false because the Indemnity Plan will cover a licensee’s liability up to a limit of $1 million.

Option (3) is false because
the Real Estate Errors and Omissions Insurance Corporation has the right to settle a claim without the consent of the licensee.

Option (4) is false because the Indemnity Plan does not provide coverage for any fines, sanctions, or penalties imposed on a
licensee by BCFSA.

Question 12

Question 16
Where a licensee receives a deposit on account of a trade in real estate under the Real Estate Services Act and puts it into a trust account, it may be withdrawn before completion for which one of the following reasons?

1. To pay for general office expenses of the brokerage
2. To pay the money into court under section 33 of the Real Estate Services Act
3. To discharge a lien against the brokerage that has been filed by the client involved in the trade
4. To cover any expenses incurred on behalf of the brokerage’s principal

Answer 12

Correct Answer: 2

The Real Estate Services Act requires licensees to deliver to their brokerage all money held or received from, for or on behalf of a principal in relation to real estate services. This money must be promptly paid into a brokerage trust account and may only be withdrawn in certain circumstances, including if the money is withdrawn to pay into court under section 33.

Options (1), (3) and
(4) are not valid reasons to withdraw trust account money before completion of a trade in real estate

Question 13

Question 17

Which of the following transactions involving a developer of residential subdivisions located in British Columbia does NOT require
a disclosure statement under the Real Estate Development Marketing Act?

1. The strata lots in a ten unit strata building located in a municipality are being sold individually.
2. Fifteen lots of 35 hectares each in a subdivision located outside a municipality are being sold individually.
3. All 5 strata lots of a development property located outside a municipality are being sold in a single transaction.
4. A bank intends to individually resell to the residential market 20 of 25 lots in a subdivision after repossessing the lots when the developer filed in bankruptcy.

Answer 13

Correct Answer: 3

The Real Estate Development Marketing Act requires a developer to prepare a disclosure statement prior to selling lots in a subdivision. A bank acquiring a bankrupt developer’s rights would also be a “developer” as defined by the Act. The regulations exempt certain transactions from the disclosure requirements including where all units in a development property are sold in a
single transaction.

Question 14

Question 19

With respect to the real estate organizations in British Columbia, which of the following is FALSE?

1. The key purpose of the Real Estate Compensation Fund Corporation is to provide compensation to those who have suffered a loss in relation to money held by a licensee being misappropriated or otherwise stolen.
2. The British Columbia Real Estate Association is made up of local real estate boards which represent various
   geographic areas in British Columbia.
3. The Real Estate Foundation of British Columbia receives some of its funding from the interest payable on real estate brokerage trust accounts.
4. The British Columbia Real Estate Association offers a professional designation, known as the “RI” designation, to members who meet the educational and experience standards set by the Association.

Answer 14

Correct Answer: 4

It is the Real Estate Institute of British Columbia, not the British Columbia Real Estate Association, who awards the “RI”
designation to members who meet the educational and experience standards set by the Institute.

Therefore, Option (4) is a false
statement and is the correct answer to this question

Question 15

Question 20

Which of the following would NOT qualify as a real estate service that could be subject to the requirements of the Real Estate Services Act?

1. Finding real estate for a party to acquire
2. Collecting rents or security deposits for the use of real estate
3. Collecting strata fees on behalf of a strata corporation
4. All of the above could be real estate services and subject to the requirements of the Real Estate Services Act.

Answer 15

Correct Answer: 4

All of the options describe real estate services that could be subject to the requirements of the Real Estate Services Act