Chapter 9 Random

Question 1

Which of the following is a TRUE statement regarding a real estate licensee’s duty to ascertain the facts respecting a client’s real estate transaction?

A. A licensee should be knowledgeable, among other things, about price levels in the real property market, general economic trends, and changes to zoning bylaws.
B. A licensee will not be liable for a breach of his or her duty to ascertain the facts if the breach resulted from a client providing incorrect information.
C. The duty placed on a licensee is “strict” — meaning that any fact overlooked by a licensee will result in a breach of the licensee’s duty, even if the licensee acted in the manner of a reasonably prudent broker in similar circumstances.
D. Online access to the land title registry has removed most excuses for a licensee’s failure to perform a title search.

(1) Only A, C and D are true.
(2) Only A is true.
(3) Only A and D are true.
(4) Only A and B are true.

Answer 1

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Question 2

Which of the following situations does NOT involve the breach of a duty owed by a licensee to a client?

(1) Leigh, a trading services representative, discloses a client’s bargaining position to that client’s competitor. Leigh thought it would be okay to do so because the transaction took place five years before.
(2) Bob receives six similar offers to purchase the house of his client, the Simpsons. He decides not to waste the Simpsons’ time, so he only presents them with the four best offers.
(3) Susan represents Navco Developments in its purchase of houses in Vancouver. Susan also represents Abco Inc. — a competitor of Navco — in Abco’s acquisition of properties in the Cariboo.
(4) Ward is a real estate licensee in Prince Rupert who deals solely with residential properties. One of his present clients expresses an interest in purchasing a warehouse and office complex for a business to be opened in Vancouver. Ward offers to fly down to Vancouver, at the expense of the client, in order to locate and negotiate the purchase. The cli

Answer 2

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Question 3

Lisa, a real estate licensee, accepts a listing at a much higher price than market conditions warrant. Back at the office, another licencee, Dave, suggests that since the seller’s interests are best served by making a sale, Lisa should advertise the property at a more reasonable price than that specified by the Seller. Which of the following Articles or Interpretations of the Standards of Business Practice has Dave overlooked in suggesting this course of action to Lisa?

(1) Article 12, Interpretation 12.2: A REALTOR® shall not provide an Opinion of Value if it is outside the REALTOR®’s field of expertise to do so unless this fact is disclosed in writing to the Client or assistance is obtained from another Person who has experience in this area.
(2) Article 25: The business of a REALTOR® shall be conducted so as to avoid controversies with other REALTORS®.
(3) Article 13: Interpretation 13.2: The advertised or offered price shall not be other than that which was agreed upon in writing with the Seller.
(4) None of the above applies to the situation described.

Answer 3

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Question 4

shelayna is a listing agent for daves property. the property has a large tree in the back yard which dave told shelayna he will be removing before the property sold. dave has a busy week at work and has asked shelayna not to present any offers to him until the week is over. shelayna shows the property to kioko who says that the large tree will be perfect for a tire swing. shelayna does not mention that the tree will be removed. kioko makes a full price offer on the property
and shelayna delays telling dave about the offer until the end of the week. what proffesional duty has shelayna breached.

1. the duty to act honestly
2. the duty to communicate all offers in a timely manner
3. the duty to advise her clients to seek independent proffesional advice
4. shelayna has not breached any proffessional duties

Answer 4

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Question 5

a conflict of interest is a situation where there is a ______, risk that the agent’s representation of a client would be negatively affected by the agents own interest or by the agents duties to another current client, a former client, or a third party

1. substantial
2. unavoidable
3. documented
4. trivial

Answer 5

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Question 6

which of the following is a common law source of duties to clients

1. the real estate services act
2. the real estate services regulation
3. agency/fiduciary law
4. the real estate services rules

Answer 6

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