Agency Relationships & Disclosure 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 Relationships & Disclosure flashcards as text
Which of the following describes 'multiple representation' (dual agency) in BC real estate?
Answer: One licensee or brokerage representing both the buyer and seller in the same transaction
Multiple representation (dual agency) occurs when the same licensee or brokerage represents both the buyer and the seller in the same transaction, creating a potential conflict of interest.
Under BCFSA rules, a licensee providing limited dual agency services must NOT:
Answer: Disclose the buyer's maximum price to the seller without consent
In limited dual agency, the licensee must not disclose confidential information such as the buyer's maximum price or the seller's minimum acceptable price without the respective party's consent.
In BC, a 'fiduciary duty' in real estate agency is best described as:
Answer: A duty of utmost good faith requiring the agent to put the client's interests above their own
A fiduciary duty is the highest duty recognized in law, requiring the agent (fiduciary) to act with utmost good faith, loyalty, and in the best interests of the client (principal), above their own interests.
Under RESA, a licensee acting as a buyer's agent who learns the seller is in financial distress should:
Answer: Disclose this to their buyer client as it is material information
A buyer's agent must disclose all material information to their buyer client, including the seller's financial distress, as it could affect negotiating strategy and the transaction outcome.
When does an agency relationship between a licensee and client typically end in BC?
Answer: Upon completion of the transaction, expiry of the listing, or by mutual agreement
Agency ends when the transaction is completed, the listing or buyer representation agreement expires, or by mutual consent of the parties. It can also end if either party dies or the purpose becomes impossible.
In BC, which form is used to document a buyer representation agreement?
Answer: Buyer Agency Agreement
A Buyer Agency Agreement (also called Buyer Representation Agreement) is the written contract between the buyer and the brokerage that establishes the agency relationship and the brokerage's compensation.