BC Real Estate Trading Services Course Real Estate Law & Contracts 4

Question 1

In BC, which document transfers ownership of land from seller to buyer?

Accepted Answer

Form A Freehold Transfer

Answer

In BC, a Form A Freehold Transfer is the standard Land Title Office form used to transfer registered ownership of freehold land from the seller to the buyer.

Question 2

A counter-offer in a BC real estate transaction has the legal effect of:

Accepted Answer

Rejecting the original offer and creating a new offer

Answer

A counter-offer legally rejects the original offer and replaces it with a new offer on different terms. The original offer no longer exists and cannot be accepted after a counter-offer is made.

Question 3

Under RESA in BC, a licensee must complete annual continuing education requirements in order to:

Accepted Answer

Renew their licence

Answer

RESA requires licensees to complete prescribed continuing education as a condition of licence renewal. Failure to complete CE can result in the licence not being renewed.

Question 4

Which of the following best describes 'consideration' in a BC real estate contract?

Accepted Answer

Something of value exchanged by each party to support the contract

Answer

Consideration is something of value (money, promise, services) given by each party to a contract. In real estate, the buyer's consideration is the purchase price and the seller's is the promise to convey title.

Question 5

Under BC law, a person who is declared mentally incapable of managing their affairs cannot:

Accepted Answer

Enter into a binding contract for the sale of real estate

Answer

Legal capacity is required to enter into contracts. A person declared mentally incapable lacks the capacity to enter into a binding contract, including contracts for the sale of real estate.

BC Real Estate Practice Test

BC Real Estate Practice Test

BC Real Estate Trading Services Course Real Estate Law & Contracts 4