BC Real Estate Trading Services Course Agency and Disclosures 2

Question 1

A buyer's agent who also represents the seller in the same transaction is acting as a:

Accepted Answer

Dual agent

Answer

When one licensee represents both the buyer and the seller in the same transaction, this is called dual agency. In BC, dual agency requires written informed consent from both parties.

Question 2

Which disclosure document must a BC licensee provide to a buyer at the first opportunity?

Accepted Answer

Working with a REALTOR disclosure

Answer

The 'Working with a REALTOR' disclosure (now called the 'Disclosure of Representation in Trading Services') must be provided to a buyer at the earliest opportunity to explain the nature of the agency relationship.

Question 3

A real estate licensee owes fiduciary duties ONLY to their:

Accepted Answer

Client (the party they represent)

Answer

Fiduciary duties — including loyalty, confidentiality, obedience, disclosure, and accountability — are owed only to the licensee's client, not to the opposing party.

Question 4

Under BC's Real Estate Services Act, a 'client' is best defined as:

Accepted Answer

A person who has entered into a service agreement with a brokerage

Answer

Under RESA, a client is a person who has entered into a service agreement (agency agreement) with a brokerage for trading services, establishing a formal agency relationship.

Question 5

Which of the following is an example of an agent's duty of confidentiality being breached?

Accepted Answer

Revealing to the buyer that the seller will accept less than the asking price

Answer

Revealing the seller's motivation or willingness to accept less than asking price is confidential information — disclosing it to the buyer breaches the agent's duty of confidentiality to their seller-client.

BC Real Estate Practice Test

BC Real Estate Practice Test

BC Real Estate Trading Services Course Agency and Disclosures 2