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 in BC, a licensee must complete the 'Disclosure of Remuneration' form to inform clients about:
Answer: All direct and indirect compensation the licensee or brokerage expects to receive from the transaction
Licensees must disclose all direct and indirect remuneration they expect to receive, including referral fees, rebates, or other benefits, using the Disclosure of Remuneration form.
In BC, if a seller instructs their agent NOT to disclose a known latent defect to buyers, the agent should:
Answer: Refuse the instruction and disclose the defect, or withdraw from the representation
Agents must disclose known material latent defects regardless of seller instructions. Following an instruction to conceal defects would violate RESA and professional conduct rules. The agent should disclose or withdraw.
Which principle prevents a BC real estate agent from profiting from their agency relationship at the client's expense without disclosure?
Answer: The fiduciary duty against self-dealing and secret profits
The fiduciary duty against secret profits prevents an agent from making undisclosed profits from their agency position. Any profit the agent makes beyond their agreed compensation must be disclosed to and approved by the client.
Under RESA, which of the following is considered 'trading services' requiring a licence in BC?
Answer: Soliciting prospective buyers or sellers on behalf of another person for compensation
Soliciting prospective buyers or sellers on behalf of another person for compensation falls within the RESA definition of trading services and requires a licence.
In BC, a 'buyer's agent' who writes an offer on a property listed by their own brokerage creates a situation known as:
Answer: In-house sale or multiple representation within the same brokerage
When a buyer's agent and listing agent are from the same brokerage, this creates an in-house sale or multiple representation situation, requiring disclosure and consent from both buyer and seller.
Under BCFSA rules, how long must a BC real estate licensee retain records of trading services transactions?
Answer: 7 years
RESA and BCFSA rules require real estate licensees to retain records of trading services transactions for a minimum of 7 years.