BC Real Estate Trading Services Course Contract Law 2

Question 1

What is a 'counter-offer' in BC real estate and what is its legal effect?

Accepted Answer

A rejection of the original offer combined with a new proposal, which the other party may accept, reject, or counter

Answer

A request for more information about the property

Answer

An automatic extension of the original offer

Answer

A verbal agreement to negotiate further

Question 2

What is the 'Property Disclosure Statement' (PDS) in BC real estate?

Accepted Answer

A voluntary form completed by the seller disclosing known defects and material facts about the property, which does not replace the buyer's duty to inspect

Answer

A mandatory government form listing all defects

Answer

A form completed by the buyer listing their requirements

Answer

A document prepared by the home inspector

Question 3

Under BC law, what is the buyer's right of 'rescission' in a presale (new development) contract?

Accepted Answer

Buyers have a 7-day cooling-off period during which they can rescind the contract without penalty

Answer

Buyers have no right to cancel presale contracts

Answer

Buyers can rescind at any time before construction begins

Answer

Buyers can only rescind if the developer agrees

Question 4

What is 'specific performance' as a remedy in BC real estate disputes?

Accepted Answer

A court order requiring the defaulting party to complete the transaction as agreed, rather than paying monetary damages

Answer

A requirement for the real estate agent to improve their service

Answer

A penalty imposed by BCFSA for professional misconduct

Answer

A requirement to redo a property inspection

Question 5

What is the effect of a 'time is of the essence' clause in a BC real estate contract?

Accepted Answer

It means that deadlines specified in the contract are strictly enforceable and failure to meet them may constitute a breach

Answer

It means the contract must be completed as quickly as possible

Answer

It is a standard clause with no special legal significance

Answer

It only applies to the subject removal date, not the completion date

Question 6

What are 'representations and warranties' in a real estate purchase contract?

Accepted Answer

Statements of fact (representations) and promises about the property's condition (warranties) that survive closing and may give rise to claims if false

Answer

Marketing materials provided by the seller's agent

Answer

The terms of the mortgage agreement

Answer

Government certificates confirming the property's condition