BC Real Estate Trading Services Course Ethics and Professional Standards

Question 1

Under RESA, what is a real estate licensee's primary duty?

Accepted Answer

To act in the best interests of the client while treating all parties honestly and with reasonable care and skill

Answer

To maximize the sale price for their client

Answer

To complete the transaction as quickly as possible

Answer

To earn the highest possible commission

Question 2

What is 'dual agency' and what are its restrictions in BC?

Accepted Answer

When one licensee represents both the buyer and seller in the same transaction, which is now prohibited in BC

Answer

When two agents work together on a transaction

Answer

When an agent represents two buyers bidding on the same property

Answer

When a brokerage has offices in two cities

Question 3

What are a BC real estate licensee's obligations regarding the disclosure of material facts?

Accepted Answer

Disclose all known material facts that could affect a reasonable buyer's decision, including latent defects known to the licensee

Answer

Only disclose information specifically requested by the buyer

Answer

Only disclose information listed on the MLS listing

Answer

Only disclose positive information about the property

Question 4

What must a real estate licensee do with a deposit received from a buyer?

Accepted Answer

Place it in the brokerage's trust account in accordance with RESA and the brokerage's policies, within the prescribed time

Answer

Deposit it into their personal bank account

Answer

Hold the cash in the office safe until closing

Answer

Give it directly to the seller

Question 5

What constitutes 'conflict of interest' for a real estate licensee in BC?

Accepted Answer

Any situation where the licensee's personal interests, or interests of another client, compete with the interests of the client they are serving

Answer

Having a personal dislike for the other party

Answer

Working for a competing brokerage

Answer

Selling a property in a neighbourhood where they live

Question 6

What is 'phantom' or 'shadow' bidding and why is it prohibited?

Accepted Answer

Creating fictitious offers to drive up the price or pressure a buyer into making a higher offer, which is fraudulent and violates RESA

Answer

Submitting a bid online rather than in person

Answer

Bidding on a property through a corporation rather than personally

Answer

Submitting an offer after the listing has expired