BC Real Estate Trading Services Course Ethics and Professional Standards 2

Question 1

What are a licensee's obligations regarding anti-money laundering (AML) in BC real estate?

Accepted Answer

Licensees must verify client identity, keep records, report suspicious transactions to FINTRAC, and follow brokerage compliance procedures

Answer

AML rules do not apply to real estate transactions

Answer

Only the lawyer handles AML requirements

Answer

AML obligations only apply to cash transactions over $100,000

Question 2

What disciplinary actions can BCFSA take against a licensee who violates professional standards?

Accepted Answer

Impose conditions on the licence, suspend or cancel the licence, require remedial education, and impose discipline penalties up to $500,000

Answer

Only issue a verbal warning

Answer

Only revoke the licence for criminal offences

Answer

BCFSA cannot take action — only the courts can discipline licensees

Question 3

A client tells their real estate licensee that they plan to grow cannabis illegally in the property they are purchasing. What should the licensee do?

Accepted Answer

Decline to continue the representation, as assisting in an illegal activity would violate the licensee's professional obligations and the law

Answer

Keep it confidential as part of client confidentiality

Answer

Report it to the police immediately without telling the client

Answer

Proceed with the transaction but document the conversation

Question 4

What is 'informed consent' in the context of BC real estate practice?

Accepted Answer

A client's agreement to a specific course of action after the licensee has fully disclosed all relevant information, risks, and alternatives

Answer

Signing the contract of purchase and sale

Answer

The seller's agreement to list the property

Answer

A verbal agreement between buyer and seller

Question 5

A licensee discovers their client's property has undisclosed latent defects. The client instructs them not to disclose this to potential buyers. What should the licensee do?

Accepted Answer

Advise the client of their legal obligation to disclose, and if the client refuses, the licensee must withdraw from the listing rather than participate in concealment

Answer

Follow the client's instructions since duty to client comes first

Answer

Disclose the defects without telling the client

Answer

Add a general disclaimer to the listing

Question 6

What are a licensee's obligations regarding personal real estate transactions in BC?

Accepted Answer

They must disclose their status as a licensee when buying or selling property for their own account, and comply with all applicable rules regarding conflicts of interest

Answer

They can buy and sell freely without any disclosure

Answer

They are prohibited from buying or selling property for themselves

Answer

They only need to disclose if they are buying from another licensee