Agency and Disclosures 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 Agency and Disclosures flashcards as text
A seller's agent who fails to present all offers to the seller is violating which duty?
Answer: Loyalty and disclosure
The duty of loyalty and disclosure requires an agent to present all offers to the seller promptly, regardless of the agent's opinion of their merit. Withholding offers breaches this duty.
In BC, the duty to disclose material latent defects applies to:
Answer: Both the seller and the seller's agent
Both the seller and the seller's agent have an obligation to disclose known material latent defects to prospective buyers. This duty exists independently of whether a buyer specifically asks.
A sub-agent is BEST described as a licensee who:
Answer: Acts on behalf of the listing brokerage to assist the seller
A sub-agent is a licensee who, with the listing brokerage's permission, assists in selling the property while representing the seller — effectively extending the seller's agency to another brokerage.
Which statement is TRUE about a buyer representation agreement in BC?
Answer: It creates a formal client relationship and obligates the brokerage to represent the buyer
A buyer representation agreement formally establishes the client relationship between a buyer and a brokerage, triggering fiduciary duties and defining the scope of representation the buyer will receive.
A listing agent's duty of disclosure to their seller-client requires them to disclose:
Answer: All information material to the seller's decision-making
The duty of disclosure requires a listing agent to share all information that is material to the seller's ability to make informed decisions — including market conditions, buyer qualifications, and competing offers.
If a buyer asks a seller's agent directly whether there have been any problems with the roof, the agent must:
Answer: Provide any known information about the roof honestly
Even though the agent represents the seller, they must answer questions from buyers honestly. They cannot misrepresent or conceal known defects — especially material ones — when directly asked.