BC Real Estate Trading Services Course Agency Relationships & Disclosure 4 — Questions and Answers
Question 1: Under RESA, 'trading services' in BC includes which of the following?
- Providing property management services only
- Showing property, presenting offers, and negotiating on behalf of buyers or sellers (Correct answer)
- Only listing properties on MLS
- Managing strata corporations
Correct answer: Showing property, presenting offers, and negotiating on behalf of buyers or sellers
RESA defines trading services broadly to include showing property, writing and presenting offers, negotiating terms, and other activities done on behalf of a buyer or seller for compensation.
Question 2: In BC, the 'duty of confidentiality' means a licensee must:
- Never discuss the property with anyone
- Not disclose the client's confidential information to third parties without consent (Correct answer)
- Keep all property defects confidential from buyers
- Avoid discussing commission with clients
Correct answer: Not disclose the client's confidential information to third parties without consent
The duty of confidentiality requires the licensee to protect the client's personal, financial, and negotiating information from disclosure to third parties without the client's consent.
Question 3: In BC, which of the following best describes the 'duty of accounting'?
- Preparing financial statements for the brokerage
- Accounting to the client for all monies received on their behalf and keeping these in trust (Correct answer)
- Filing income tax returns for clients
- Calculating the Property Transfer Tax for buyers
Correct answer: Accounting to the client for all monies received on their behalf and keeping these in trust
The duty of accounting requires an agent to account for all money received on behalf of a client, hold it in trust, and provide a full accounting of all funds received and disbursed.
Question 4: Under BCFSA rules, if a buyer asks a seller's agent whether the seller will accept less than the listed price, the agent should:
- Tell the buyer the seller's minimum price if they know it
- Decline to disclose the seller's confidential information and suggest the buyer make an offer (Correct answer)
- Refer the buyer to another agent
- Contact BCFSA for guidance before answering
Correct answer: Decline to disclose the seller's confidential information and suggest the buyer make an offer
A seller's agent owes the seller a duty of confidentiality. They cannot disclose the seller's minimum acceptable price or other confidential negotiating information to the buyer.
Question 5: In BC, a listing agreement grants the brokerage which type of authority over the seller's property?
- Absolute authority to accept any offer
- Authority to market the property and present offers on behalf of the seller within agreed terms (Correct answer)
- Authority to modify the listing price without consent
- Authority to transfer title at closing
Correct answer: Authority to market the property and present offers on behalf of the seller within agreed terms
A listing agreement grants the brokerage authority to market the property and present offers on the seller's behalf. It does not grant authority to accept offers — only the seller can accept.
Question 6: Under RESA, which of the following can result in discipline or licence cancellation for a BC licensee?
- Recommending a home inspector to a buyer
- Misappropriating client funds held in trust (Correct answer)
- Working overtime to sell a property
- Representing multiple sellers in different transactions
Correct answer: Misappropriating client funds held in trust
Misappropriating client trust funds is one of the most serious violations under RESA and can result in immediate licence cancellation, fines, and referral to law enforcement.
BC Real Estate Trading Services Course Agency Relationships & Disclosure 4
Under RESA, 'trading services' in BC includes which of the following?