BC Real Estate Trading Services Course Real Estate Law & Contracts 3

Question 1

In BC, if a seller fails to complete a valid contract of purchase and sale, the buyer's remedies include:

Accepted Answer

Specific performance or damages

Answer

When a seller breaches a valid real estate contract in BC, the buyer can seek specific performance (court order to complete the sale) or damages for loss suffered.

Question 2

Under RESA, the managing broker of a brokerage is responsible for:

Accepted Answer

Supervising the trading activities of licensees under the brokerage

Answer

Under RESA, the managing broker bears responsibility for supervising all trading services activities of licensees employed by or associated with the brokerage.

Question 3

A Contract of Purchase and Sale in BC becomes binding when:

Accepted Answer

Both parties have signed and the acceptance has been communicated to the offeror

Answer

A contract is formed when there is offer, acceptance, and communication of that acceptance to the offeror. Simply signing is not enough — the acceptance must be communicated.

Question 4

Which of the following clauses in a BC purchase contract allows the buyer to exit if they cannot arrange financing?

Accepted Answer

Subject to financing clause

Answer

A 'subject to financing' clause makes the contract conditional on the buyer obtaining satisfactory financing. If financing is not obtained by the subject removal date, the buyer can void the contract.

Question 5

In BC, the Property Disclosure Statement (PDS) is:

Accepted Answer

A voluntary disclosure document where sellers disclose known facts about the property

Answer

The Property Disclosure Statement in BC is a voluntary (not legally mandated) form where sellers disclose known facts about the property's condition. Sellers can refuse to provide it, but agents must advise buyers of its absence.

BC Real Estate Practice Test

BC Real Estate Practice Test

BC Real Estate Trading Services Course Real Estate Law & Contracts 3