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
Under BCFSA rules, a licensee must disclose their personal interest in a transaction (e.g., they are buying the property themselves) to:
Answer: The seller, in writing, before or when the offer is presented
Under RESA and BCFSA rules, a licensee purchasing property for themselves or their associates must disclose this interest to the seller in writing before or when presenting the offer.
In BC, 'informed consent' to dual agency requires that:
Answer: The licensee explain the risks of dual agency and the client voluntarily agree in writing
Informed consent to dual agency requires that the licensee explain the nature of dual agency, the potential conflicts, and the limitations on their duties, and that both parties then agree in writing.
Which of the following is NOT a fiduciary duty owed by a BC real estate agent to their client?
Answer: Guaranteeing the sale price
Fiduciary duties include loyalty, confidentiality, disclosure, obedience to lawful instructions, accounting, and reasonable care. Guaranteeing a sale price is not a duty — it is impossible and would be a misrepresentation.
In BC, when a licensee represents a buyer through a buyer agency agreement, who pays the buyer's agent's commission?
Answer: Typically the seller pays via the listing commission, which is split with the buyer's brokerage
In most BC transactions, the seller pays a total commission to the listing brokerage, which then co-operates by sharing a portion with the buyer's brokerage, even though the buyer's agent represents the buyer.
Under RESA BC, which of the following must be disclosed to a buyer by any licensee involved in the transaction?
Answer: Known material latent defects affecting the property
All licensees involved must disclose known material latent defects to buyers. This is a statutory duty that applies regardless of which party the licensee represents.
In BC, a 'sub-agent' in real estate is:
Answer: An agent appointed by the listing agent to assist with the transaction on behalf of the seller
A sub-agent is an agent appointed by the principal agent (listing agent) to act on behalf of the same client (seller). Sub-agency has largely been replaced by buyer agency and designated agency in modern practice.