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
In BC, which of the following is an example of an 'easement'?
Answer: The right of a utility company to run power lines across private land
An easement is a right to use another person's land for a specific purpose, such as utility companies having the right to access land for power lines, pipelines, or right-of-way access.
Under RESA, which of the following activities requires a real estate licence in BC?
Answer: Acting as an agent to sell another person's home for compensation
RESA requires a trading services licence when acting on behalf of another person to buy or sell real estate in exchange for compensation. Private sales by an owner do not require a licence.
In BC, what is the role of the Property Transfer Tax (PTT) in a real estate transaction?
Answer: It is a provincial tax paid by the buyer when property transfers ownership
Property Transfer Tax is a BC provincial tax payable by the buyer when a property is transferred. It is calculated on the property's fair market value and must be paid at the time of registration.
A 'condition precedent' in a BC real estate contract is:
Answer: A clause that must be fulfilled before the contract becomes binding
A condition precedent (subject clause) is a condition that must be fulfilled or waived before the contract becomes unconditional and binding. Examples include subjects to financing or home inspection.
Under BC law, 'escheat' refers to:
Answer: Property reverting to the Crown when an owner dies without heirs or a valid will
Escheat is the legal doctrine where property reverts to the Crown (provincial government) if the owner dies intestate (without a will) and there are no entitled heirs.
In BC, a 'listing agreement' between a seller and a brokerage is best described as:
Answer: An agency contract authorizing the brokerage to market and sell the property
A listing agreement is an agency contract between the seller and the brokerage, authorizing the brokerage to represent the seller in marketing and selling the property, usually for an agreed commission.