Assignment 6

Question 1

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

Correct Answer: 1

Option (1) is correct because ethics is a key component of the concept of professionalism.

Option (2) is incorrect because
professionalism and ethics are both core concepts in the Real Estate Services Act.

Option (3) is incorrect because if a person is
unprofessional, they are likely also acting unethically.

Option (4) is incorrect because ethics is the group of morals that govern a person’s behaviour, while professionalism refers to the overall competence of a professional, which includes ethics.

Question 2

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 Real Estate Services Rules?

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

Answer 2

Correct Answer: 4

Option (4) is correct because conduct unbecoming a licensee is conduct that is contrary to the interests of the public; undermines public confidence; or brings the real estate industry into disrepute. This is above and beyond technical compliance with legislation and the Real Estate Services Rules (the “Rules”).

Option (1) is incorrect because professional misconduct is concerned with technical compliance with legislation and the Rules.

Options (2) and (3) are incorrect because lapse of character and breach of civility are not types of misconduct explicitly mentioned by the Real Estate Services Act

Question 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 3

Correct Answer: 3

Option (3) is correct because public law is the law related to the relationship between individuals and the government. It does not govern the relationship between a licensee and their client.

Options (1), (2), and (4) are incorrect because they are areas of law where duties owed by licensees to their clients arise

Question 4

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 their vacation begins.
4. A licensee purchases property for themselves from an unrepresented seller.

Answer 4

Correct Answer: 4

Option (4) is correct because a licensee who purchases a property for themselves from an unrepresented seller has a duty to disclose their status as a licensee, but does not have a conflict of interest.

Option (1) is incorrect because a licensee who has two clients interested in the same property cannot act in the best interests of both clients, so there is a conflict of interest.

Option (2) is incorrect because a licensee who will receive remuneration for recommending a specific company is in a conflict of interest as they may value receiving the referral fee more than acting in the best interests of their client.

Option (3) is incorrect because a licensee who wants to sell a client’s property quickly is in a conflict of interest, as they may advise their client to take a lower offer instead of waiting for one closer to the asking price

Question 5

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 British Columbia Financial Services Authority will not assist licensees in deciding whether they should report certain
   misconduct, as this is the responsibility of the licensee to decide.

Answer 5

Correct Answer: 2

Option (2) is correct because the duty to report reflects the fact that maintaining the integrity of the real estate profession is the shared responsibility of the British Columbia Financial Services Authority (BCFSA), and members of the profession. The shared duty to report helps to hold every member of the profession to the highest standards.

Option (1) is incorrect because while licensees should generally report incidents of misconduct to their managing broker, if they are concerned about how their managing broker is handling an instance of misconduct, or it is their managing broker who committed the professional misconduct, they should report directly to BCFSA.

Option (3) is incorrect because the general duty to report is shared amongst
other professions, including lawyers, chartered professional accountants, and health care professionals. Option (4) is incorrect because if a licensee is unsure of whether to report misconduct, they may consult with BCFSA for further guidance about the conduct observed.

Question 6

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 they want to relax on their vacation and do not want to be contacted about any offers for their property until they are back in town in seven days. On the second day of their vacation, you receive a very strong offer for their 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 them 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 them with any offers until they return from their
   vacation is a clear breach of the duty of disclosure.

Answer 6

Correct Answer: 2

Option (2) is correct because, in this situation, you are obeying the client’s lawful instructions by not contacting her while she is on vacation, and there is no conflict with the duty to present offers in a timely manner, as your client has specifically instructed you not to contact her. However, you may not be acting in the client’s best interest by not presenting the offer to her.

Option (1) is incorrect because the client has clearly communicated that she is not to be disturbed while on vacation, so you should not communicate the offer to her.

Option (3) is incorrect because there is no conflict of interest present in this scenario.

Option (4) is incorrect because the duty of disclosure relates to what a licensee discloses to a client, not what a licensee discloses to a third party.