BC Real Estate Trading Services Course Real Estate Law & Contracts 2

Question 1

A contract for the sale of land in BC is unenforceable unless it is:

Accepted Answer

In writing and signed by the party to be charged

Answer

Under the Law and Equity Act BC (incorporating the Statute of Frauds), contracts for the sale of land must be in writing and signed by the party against whom enforcement is sought.

Question 2

In BC, 'time is of the essence' in a real estate contract means:

Accepted Answer

All dates and deadlines in the contract are strict and must be met exactly

Answer

When 'time is of the essence' is included, all time limits in the contract are strict conditions. Missing a deadline (e.g., completion date) can entitle the other party to treat the contract as breached.

Question 3

Which of the following is NOT a requirement for a valid contract in BC?

Accepted Answer

Registration at Land Title Office

Answer

A valid contract requires offer and acceptance, consideration, capacity, and legal purpose. Registration at the Land Title Office is a step in completing the conveyance, not a requirement for contract validity.

Question 4

Under RESA, a brokerage that fails to maintain a trust account for client funds may face:

Accepted Answer

Licence suspension or cancellation and fines

Answer

RESA requires brokerages to maintain trust accounts for client funds. Failure to do so is a serious breach that can result in licence suspension, cancellation, and significant administrative penalties.

Question 5

In BC, what does 'caveat emptor' mean in the context of real estate transactions?

Accepted Answer

The buyer purchases at their own risk and must investigate the property

Answer

Caveat emptor ('buyer beware') means the buyer is responsible for investigating the property. However, this principle is modified by the seller's duty to disclose known latent defects.

BC Real Estate Practice Test

BC Real Estate Practice Test

BC Real Estate Trading Services Course Real Estate Law & Contracts 2