Real Estate Law & Contracts Flashcards
6 cards from real BC Real Estate Trading Services Course practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Real Estate Law & Contracts flashcards as text
A contract for the sale of land in BC is unenforceable unless it is:
Answer: In writing and signed by the party to be charged
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.
In BC, 'time is of the essence' in a real estate contract means:
Answer: All dates and deadlines in the contract are strict and must be met exactly
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.
Which of the following is NOT a requirement for a valid contract in BC?
Answer: Registration at Land Title Office
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.
Under RESA, a brokerage that fails to maintain a trust account for client funds may face:
Answer: Licence suspension or cancellation and fines
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.
In BC, what does 'caveat emptor' mean in the context of real estate transactions?
Answer: The buyer purchases at their own risk and must investigate the property
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.
A 'latent defect' in a BC real estate transaction is best described as:
Answer: A defect that is hidden and cannot be discovered through reasonable inspection
A latent defect is one that is not visible or discoverable through a reasonable inspection. Sellers in BC have a duty to disclose known latent defects that are material to the transaction.