Law of Contracts 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 Law of Contracts flashcards as text
Under BC's Residential Tenancy Act, can a landlord terminate a month-to-month tenancy because a buyer has purchased the property and wants to occupy it?
Answer: Yes — the landlord can give two months' notice for the purchaser's own use if the buyer is an individual
Under BC's Residential Tenancy Act, a landlord (including a new owner after closing) can give a tenant two months' written notice to vacate for the landlord's, purchaser's, or their close family member's own use — but this right applies when the buyer is an individual, not a corporation.
The concept of 'specific performance' in a real estate contract dispute means:
Answer: A court order compelling a party to fulfill their contractual obligations by completing the transaction
Specific performance is an equitable remedy where a court orders the defaulting party to actually perform their contractual obligations — in real estate, this means completing the sale — rather than simply paying monetary damages.
What is the legal effect of a 'subject to sale of buyer's property' condition in a BC purchase contract if the buyer's property does not sell within the condition period?
Answer: The condition is not met, and the contract can be terminated with the deposit returned to the buyer
If a 'subject to sale of buyer's property' condition is not met within the agreed period, and the condition is not waived, the contract terminates and the deposit is returned to the buyer — no party is in default.
A real estate agent discovers after closing that a representation they made about the property's square footage was incorrect. Which legal concept would likely apply?
Answer: Misrepresentation — a false statement of material fact that induced the buyer to contract
An incorrect statement of fact about a material property characteristic (like square footage) made to induce a buyer to purchase constitutes misrepresentation, which can give the buyer grounds for rescission or damages.
When a buyer's deposit is being held in a real estate brokerage's trust account after an accepted offer, what happens to the deposit if the buyer defaults?
Answer: It remains in trust until both parties agree in writing how it should be released, or a court orders its distribution
In BC, a deposit held in a brokerage's trust account cannot be released without written authorization from both parties or a court order. A buyer's default does not automatically entitle the seller to the deposit.
An 'as is, where is' clause in a BC real estate contract means that the buyer:
Answer: Accepts the property in its current physical condition and the seller makes no warranties about its state
An 'as is' clause means the buyer agrees to take the property in whatever condition it is in, releasing the seller from contractual warranties about the property's condition — but it does not protect a seller who actively misrepresents or conceals known defects.