BC Real Estate Trading Services Course Agency Relationships & Disclosure 2

Question 1

Which of the following describes 'multiple representation' (dual agency) in BC real estate?

Accepted Answer

One licensee or brokerage representing both the buyer and seller in the same transaction

Answer

Multiple representation (dual agency) occurs when the same licensee or brokerage represents both the buyer and the seller in the same transaction, creating a potential conflict of interest.

Question 2

Under BCFSA rules, a licensee providing limited dual agency services must NOT:

Accepted Answer

Disclose the buyer's maximum price to the seller without consent

Answer

In limited dual agency, the licensee must not disclose confidential information such as the buyer's maximum price or the seller's minimum acceptable price without the respective party's consent.

Question 3

In BC, a 'fiduciary duty' in real estate agency is best described as:

Accepted Answer

A duty of utmost good faith requiring the agent to put the client's interests above their own

Answer

A fiduciary duty is the highest duty recognized in law, requiring the agent (fiduciary) to act with utmost good faith, loyalty, and in the best interests of the client (principal), above their own interests.

Question 4

Under RESA, a licensee acting as a buyer's agent who learns the seller is in financial distress should:

Accepted Answer

Disclose this to their buyer client as it is material information

Answer

A buyer's agent must disclose all material information to their buyer client, including the seller's financial distress, as it could affect negotiating strategy and the transaction outcome.

Question 5

When does an agency relationship between a licensee and client typically end in BC?

Accepted Answer

Upon completion of the transaction, expiry of the listing, or by mutual agreement

Answer

Agency ends when the transaction is completed, the listing or buyer representation agreement expires, or by mutual consent of the parties. It can also end if either party dies or the purpose becomes impossible.

BC Real Estate Practice Test

BC Real Estate Practice Test

BC Real Estate Trading Services Course Agency Relationships & Disclosure 2