BC Real Estate Trading Services Course Real Estate Law & Contracts 1 — Questions and Answers
Question 1: Under the Real Estate Services Act (RESA) in BC, which body is responsible for regulating real estate licensees?
- BCFSA (Correct answer)
- RECBC
- CREA
- RECA
Correct answer: BCFSA
The BC Financial Services Authority (BCFSA) took over regulation of real estate licensees in BC from the Real Estate Council of BC (RECBC) in 2021.
Question 2: Under RESA, a licensee who provides trading services must hold which category of licence?
- Property management licence
- Trading services licence (Correct answer)
- Rental property licence
- Mortgage broker licence
Correct answer: Trading services licence
RESA establishes specific licence categories. To provide trading services (buying/selling real estate), a person must hold a trading services licence.
Question 3: Which BC statute governs the transfer of land ownership and establishes the Land Title Office system?
- Property Law Act
- Land Title Act (Correct answer)
- Real Estate Services Act
- Torrens System Act
Correct answer: Land Title Act
The Land Title Act (BC) establishes the land title registration system and governs how ownership of land is transferred and recorded in BC.
Question 4: In a contract of purchase and sale in BC, the 'subject removal' date refers to:
- The date the seller vacates the property
- The deadline by which the buyer must satisfy or waive subject conditions (Correct answer)
- The date the notary registers the title
- The closing/completion date
Correct answer: The deadline by which the buyer must satisfy or waive subject conditions
Subject removal date is the deadline by which a buyer must confirm (satisfy or waive) all conditions (subjects) in the offer, such as financing or inspection. If not removed, the contract collapses.
Question 5: Under the Property Law Act BC, a covenant running with the land is said to:
- Expire after 10 years automatically
- Bind only the original contracting parties
- Bind subsequent owners of the land (Correct answer)
- Require annual renewal with the Land Title Office
Correct answer: Bind subsequent owners of the land
A restrictive covenant running with the land binds not just the original parties but also subsequent owners of the burdened land, as it is registered against the title.
Question 6: What is the minimum age requirement to be licensed as a real estate trading services licensee in BC?
- 16
- 18
- 19 (Correct answer)
- 21
Correct answer: 19
Under RESA, an applicant for a real estate licence in BC must be at least 19 years old, which is the age of majority in British Columbia.
BC Real Estate Trading Services Course Real Estate Law & Contracts 1
Under the Real Estate Services Act (RESA) in BC, which body is responsible for regulating real estate licensees?