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176 Cards in this Set
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723. A mortgage broker will advance $97,000 to a borrower who has agreed to pay a bonus of $2,200. As a consequence, the face value of the loan will be $99,200. The loan will be amortized over 25 years with monthly payments at j2 = 16%. Calculate the monthly payment required to amortize the loan.
(1) $1,279.50 (2) $1,308.52 (3) $1,348.02 (4) $1,318.13 |
(2) $1,308.52
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730. Which of the following statements about the common law doctrine of notice is FALSE?
(1) This doctrine holds a purchaser to have notice of all reasonably discoverable interests affecting a property. (2) This doctrine is the basis of the B.C. Torrens system. (3) Subject to certain exceptions, the Land Title Act has abolished the doctrine of notice in British Columbia. (4) The doctrine of notice conflicts with the Torrens principle of conclusiveness of the register. |
(2) This doctrine is the basis of the B.C. Torrens system.
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731. Vanna has agreed to sell her summer cottage to Pat. Vanna and Pat used the standard Contract of Purchase
and Sale on which they agreed to the following dates: Completion Date: August 31, 1999 Adjustment Date: January 1, 2000 Possession Date: June 1, 2000 Which one of the following statements is true? (1) There will be no adjustment for real property taxes on the purchaser's statement of adjustments. (2) If Pat wishes to ensure that any risk to himself due to property damage is insured, he should insure the property as at May 31, 2000. (3) Neither statement (1) or (2) are true. (4) Both statement (1) and statement (2) are true. |
(1) There will be no adjustment for real property taxes on the purchaser's statement of adjustments.
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738. Ernie Parent, an investor in mortgages, would prefer to earn which of the following yields?
(1) j2 = 20% (2) j1 = 21% (3) j365 = 19.0670143784% (4) Ernie would be indifferent amongst the 3 yields. |
(4) Ernie would be indifferent amongst the 3 yields.
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739. With which one of the following loans is the lender's initial capital and periodic income at the greatest risk?
(1) interest only loans (2) interest accruing loans (3) straight line principal reduction loans (4) constant payment loans |
(2) interest accruing loans
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740. Depreciation expense is:
(1) another name for capital cost allowance. (2) an accounting concept which attempts to allocate the cost of an asset over the life of the asset. (3) usually calculated on land by the straight-line method. (4) none of the above. |
(2) an accounting concept which attempts to allocate the cost of an asset over the life of the asset.
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741. Where a case is brought before a judge of the British Columbia Supreme Court:
(1) the judge may exercise only equitable jurisdiction in deciding the matter. (2) the judge may exercise both equitable and common law jurisdiction in deciding the matter. (3) where common law and equity conflict, the judge must apply the common law rule. (4) the judge may not do any of the above. |
(2) the judge may exercise both equitable and common law jurisdiction in deciding the matter.
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742. A real estate developer has borrowed $60,000 by way of an interest accruing loan written at j12 = 18%. How much will the developer owe at the end of 12 months?
(1) $71,737.09 (2) $68,603.40 (3) $71,286.00 (4) $70,800.00 |
(1) $71,737.09
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744. What will be the purchase price of a mortgage which will provide the purchaser with 48 payments of $650 plus an outstanding balance of $55,858.13 at the end of 48 months, if the purchaser of the mortgage requires a yield of 15% per annum, compounded monthly?
(1) $55,698.26 (2) $58,989.31 (3) $52,305.42 (4) $54,125.28 |
(4) $54,125.28
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745. In which of the following situations is manufactured home registration NOT required?
(1) Where the home is owned by a dealer. (2) Where the home is to be moved. (3) Where the home is to be sold. (4) Where, since 1978, the home has been on land belonging to the owner. |
(4) Where, since 1978, the home has been on land belonging to the owner.
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746. Jack & Jill have just received an inheritance of $350,000. Their plans are to immediately leave on a roundthe-world sailing trip, and upon their return in three years, purchase a house with a $100,000 down payment. They have found a place to invest their money at 12.75% per annum, compounded annually for a three-year term. What is the maximum amount of their inheritance that they can spend now to purchase traveller's cheques (which will be spent on their vacation) while still having a $100,000 down payment in 3 years?
(1) $ 69,767.05 (2) $281,646.83 (3) $244,184.67 (4) $280,232.95 |
(4) $280,232.95
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747. A young executive has applied to her bank for a mortgage loan to enable her to purchase a house. Her income is $35,000 per year. The bank informs her that they will apply a 35% gross debt service ratio when calculating her maximum loan, and that current mortgage rates are 20% per annum, compounded semiannually for 20 year term mortgages. Given that annual property taxes are $975.00, and mortgage payments are to be made monthly, what is the maximum mortgage loan the bank will grant?
(1) $57,384.30 (2) $55,308.24 (3) $58,488.13 (4) $62,346.54 |
(1) $57,384.30
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748. A complaint against the amount of a real property assessment might proceed through hearings by the four
different bodies listed below: A. Property Assessment Appeal Board B. Property Assessment Review Panels C. Court of Appeal D. Supreme Court of British Columbia The order of these hearings would be: (1) A, B, D, C (2) B, A, D, C (3) A, C, B, D (4) B, A, C, D |
(2) B, A, D, C
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749. A constant payment mortgage is written for $148,951.77 and specifies payments of $1,537.03 per month for 25 years. The interest rate on this mortgage is:
(1) 0.975877399% per month (2) 12.3599730404% per annum, compounded annually (3) 0.0319332007% per day (4) all of the above |
(4) all of the above
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750. If an offeror who has stated that the offer is open for 24 hours, decides to terminate the offer, the offeror:
(1) must not terminate the offer until the 24 hours has expired. (2) must communicate any revocation of the offer to the offeree. (3) must give reasonable notice to the offeree before revoking the offer. (4) must give at least 72 hours' notice to the offeree before revoking the offer. |
(2) must communicate any revocation of the offer to the offeree.
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751. A real estate broker has listed a property for sale at a listing price of $100,000. The commission is agreed to be based on the difference between the listed price and the actual sales price. The agreement is:
(1) contrary to the Real Estate Services Act. (2) lawful if the agreement is reduced to writing and signed by both parties. (3) specifically provided for as acceptable under the regulations to the Real Estate Services Act. (4) lawful if the purchaser agrees. |
(1) contrary to the Real Estate Services Act.
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752. A $46,000 second mortgage with interest at the rate of 15% per annum, compounded monthly calls for
monthly payments of $555.00. The loan is based on: (1) an interest only repayment scheme. (2) a fully amortized repayment scheme. (3) partially amortized repayment scheme. (4) none of the above three repayment schemes. |
(4) none of the above three repayment schemes.
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753. Short term national general economic factors include some of the following:
A. Interest rates on treasury bills B. Consumer expectations C. Shifts in population D. Number of public housing projects Which of the following are included? (1) Only A and C are included. (2) Only A, B and D are included. (3) Only A and D are included. (4) Only A and B are included. |
(4) Only A and B are included.
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754. The potential purchaser of an apartment block has asked an appraiser to do an appraisal of the apartment block in order to determine its market value. The following information has been made available to the appraiser: estimated gross realized income is $44,200; estimated long term vacancy allowance is 4%; estimated annual operating expenses are $17,850. In addition to this information, the appraiser has found two similar properties with the following yields: Property A has an effective annual yield of 7.85%, and Property B has an effective annual yield of 8.15%. Given the above information, the final estimate of value for the subject property on the date of valuation is:
(1) $335,669 (2) $307,275 (3) $323,313 (4) $329,375 |
(4) $329,375
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755. As an appraiser working for a large investment firm, you have been asked to determine the value of a small
commercial building which produces a net operating income of $48,700 per annum. If the market capitalization rate for similar investments is j1 = 20%, the market value of the property is: (1) $243,573.21 (2) $240,000.00 (3) $243,500.00 (4) impossible to calculate with information given. |
(3) $243,500.00
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756. (i) is a conveyance of land as a security for a loan and carries with it the (ii) equitable right to redeem the security on payment of the debt, even after default.
(1) (i) A mortgage; (ii) mortgagee's (2) (i) An agreement for sale; (ii) purchaser's (3) (i) A mortgage; (ii) mortgagor's (4) (i) A deposit of the duplicate certificate of title; (ii) borrower's |
(3) (i) A mortgage; (ii) mortgagor's
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759. An interest accruing mortgage loan requires that $500,000 be paid at the end of a five year term. If the rate
of interest on the loan is j12 = 12%, calculate the amount of funds advanced. (1) $283,713.43 (2) $279,197.41 (3) $312,500.00 (4) $275,224.81 |
(4) $275,224.81
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760. A $1,410,000 construction loan is written at 21 1/2% per annum, compounded semi-annually and requires interest only payments monthly. The amount of those payments is:
(1) $24,082.24 (2) $24,028.42 (3) $23,492.17 (4) $24,200.06 |
(4) $24,200.06
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761. Steve-Ann, a trading services licensee, has been asked by her friend Jean to find a house and, if successful, Jean has agreed to pay Steve-Ann the sum of $3,000, over and above any commission that Steve-Ann would earn on the sale of the property. When Steve-Ann finds a house acceptable to Jean, Steve-Ann shares the
commission with the other licensees involved and receives $3,000 directly from Jean. Steve-Ann does not tell anyone of this $3,000 payment. Which of the following statements are TRUE? (1) Steve-Ann has breached the provisions of the Real Estate Services Act. (2) Steve-Ann has breached the common law principles of agency law. (3) Both (1) and (2) are true. (4) Neither (1) nor (2) is true. |
(1) Steve-Ann has breached the provisions of the Real Estate Services Act.
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762. Which of the following best describes the "strata corporation"?
(1) the individual strata owners collectively, once the strata plan has been deposited at the land title office (2) a body of three to seven elected representatives from among the owners of the strata lots (3) a corporation formed by a group of individuals who possess an undivided joint ownership interest in the land and/or buildings (4) a group of professional managers hired by a condominium project to handle the matters affecting the security and maintenance of the common property, facilities and assets of the condominiums |
(1) the individual strata owners collectively, once the strata plan has been deposited at the land title office
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764. Ron, a developer, wanted to convert a 15 unit three-story apartment he owned into a condominium, in order to realize a greater profit on the sale of condo units than he would if he sold the building as a single entity. Which of the following factors would the municipal council NOT be required to consider in deciding whether to give approval to the conversion application?
(1) The fact that the construction of a large shopping mall four blocks from the building had caused land values to rise to an extent where it was no longer economical to maintain the property as a small apartment. (2) The fact that there was a relatively high rental vacancy rate in the area, as compared with the city as a whole. (3) The fact that Ron had promised, as part of his conversion proposal, to make a voluntary payment of $500 to each of the tenants, as a contribution to their moving costs. (4) The fact that the building had a limited life expectancy due to its aging construction and the need for replumbing throughout the entire building. |
(1) The fact that the construction of a large shopping mall four blocks from the building had caused land values to rise to an extent where it was no longer economical to maintain the property as a small apartment.
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765. Jane purchased a condominium on the understanding that pets were permitted by the bylaws of the strata corporation. Later, the corporation passed a bylaw prohibiting any owner from keeping any animal on his
or her strata lot. When Karl subsequently purchased his lot, he was aware of this new bylaw. The strata council has ordered the removal of Jane's dog and Karl's cat from their lots. Which of the following statements is FALSE? (1) Karl must remove his cat; the bylaw is enforceable against him. (2) Jane will be grandfathered and will be able to keep her dog. (3) Pet restrictions are valid under the Strata Property Act. (4) The Schedule of Standard Bylaws allows an owner one dog or one cat, and therefore Karl and Jane can keep their pets. |
(4) The Schedule of Standard Bylaws allows an owner one dog or one cat, and therefore Karl and Jane can keep their pets.
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767. Ernie Parent, an investor in mortgages, would prefer to have a mortgage contract written at which of the
following interest rates? (1) j2 = 14.75% (2) j1 = 14.75% (3) j4 = 14% (4) Ernie would be indifferent amongst the three yields. |
(1) j2 = 14.75%
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770. If investors are able to double their funds in 6 years, what would be the effective annual rate of interest earned on those funds?
(1) 33.3333333333% (2) 20.0936955176% (3) 16.6666666667% (4) 12.2462048309% |
(4) 12.2462048309%
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771. An investor has decided to establish a bank account in order to accumulate sufficient capital at the end of 7 years to purchase a boat. If the account pays interest at 16% per annum, compounded monthly and the investor makes deposits of $8,000 at the end of each year, how much capital will the investor have accumulated at the end of 7 years?
(1) $ 94,839.29 (2) $ 31,174.01 (3) $ 113,920.74 (4) $ 91,310.99 |
(1) $ 94,839.29
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776. An inexperienced borrower has agreed to an interest accruing loan at a rate of 0.0675% per day compounded daily, and borrowed $1,000 for one year. What will the borrower owe at the end of that year?
(1) $1,279.27 (2) $1,067.50 (3) $1,000.68 (4) $1,246.38 |
(1) $1,279.27
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777. Which of the following will NOT serve to discharge a contract?
(1) an agreement between the parties (2) the concept of frustration (3) performance of the parties' mutual obligations (4) a patent defect |
(4) a patent defect
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781. Under the combined provisions of the Local Government Act and the Assessment Act, the "owner" who is liable to pay the real property taxes includes:
A. where a person is a registered owner of a life estate, the life tenant; B. where there is an agreement for sale and purchase of the real property, the registered holder of the last registered agreement for sale and purchase. Which of the following statements are TRUE? (1) Only A is included under the definition of "owner". (2) Only B is included under the definition of "owner". (3) Neither A nor B is included under the definition of "owner". (4) Both A and B are included under the definition of "owner". |
(4) Both A and B are included under the definition of "owner".
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782. Where a deposit is paid directly to a vendor on account of the purchase price:
(1) the amount of the deposit will appear only on the purchaser's statement of adjustments. (2) the amount of the deposit will appear as a debit on the purchaser's statement and a credit on the vendor's statement. (3) the amount of the deposit will appear only on the vendor's statement of adjustment. (4) none of the above statements are true. |
(3) the amount of the deposit will appear only on the vendor's statement of adjustment.
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783. The courts will never allow the remedy of specific performance where:
(1) the plaintiff is a limited company. (2) the defendant is without means. (3) damages are considered to be an adequate remedy. (4) the contract has already been partially performed. |
(3) damages are considered to be an adequate remedy.
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784. A constant payment mortgage is written for $48,951.77 and specifies payments of $520.00 per month for 15 years. The interest rate on this mortgage is:
(1) j2 = 11.5% (2) j4 = 10.1637220669% (3) j12 = 9.79781791304% (4) all of the above |
(3) j12 = 9.79781791304%
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785. Which of the following is NOT a characteristic of a corporation?
(1) A corporation can be sued. (2) The shareholders of a corporation cannot be held responsible for more than their agreed share purchase. (3) The shares of a corporation must be held by more than one party. (4) A corporation is a taxable entity. |
(3) The shares of a corporation must be held by more than one party.
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786. Mike Moneyman, who is seeking to invest in a mortgage loan, would prefer which of the following yields?
(1) j2 = 20% (2) j1 = 20.85% (3) j365 = 19.25% (4) Mike would be indifferent amongst the three yields quoted above. |
(3) j365 = 19.25%
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787. Which of the following is NOT a common covenant of the borrower?
(1) provision to pay all property taxes (2) provision to keep the property well maintained (3) provision to insure the property to replacement value or such lesser amount as the mortgagee determines (4) provision to waive the rescission rights under the Mortgage Brokers Act |
(4) provision to waive the rescission rights under the Mortgage Brokers Act
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788. Fred and Mary have just received an inheritance of $250,000. Their plans are to purchase a house with a
$200,000 down payment after sailing around the world for three years. They have found a place to invest their money at 10.5% per annum, compounded monthly for a three-year term. What is the maximum amount of their inheritance they can use to purchase traveller's cheques (which will be spent on their vacation) without sacrificing their $200,000 down payment? (1) $146,157.89 (2) $ 67,302.63 (3) $ 50,000.00 (4) $103,842.11 |
(4) $103,842.11
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791. An appraiser is looking for comparables to use in valuing a single family residence. Which of the following sales could provide good evidence of market value to the appraiser?
(1) An identical house in the same neighbourhood as the subject property is listed at $210,000 but has not yet sold. (2) A similar house in the neighbourhood sold last month, after having been listed for two months. (3) A similar house in a similar neighbourhood was purchased by a developer who was assembling land to build a neighbourhood plaza. (4) Three weeks ago the owner of the house next to the subject property was notified that she had been transferred to Winnipeg and was to start this week. She has now sold her home and left for Winnipeg. |
(2) A similar house in the neighbourhood sold last month, after having been listed for two months.
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793. Which of the following statements is TRUE?
(1) An appeal from all courts of original jurisdiction in B.C., including small claims court, is to the B.C. Court of Appeal. (2) An appeal from the B.C. Supreme Court is to the B.C. Court of Appeal. (3) A person who loses in the B.C. Court of Appeal has an absolute right to be heard in the Supreme Court of Canada. (4) An appeal from small claims court is heard by three, five or seven judges. |
(2) An appeal from the B.C. Supreme Court is to the B.C. Court of Appeal.
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794. Which of the following is NOT an exception to the principle of indefeasibility under the B.C. Torrens system
of land registration? (1) a lien for unpaid provincial taxes (2) a public right-of-way in favour of B.C. Hydro and Power Authority (3) a registered mortgage where the registered mortgagee effected registration by fraud (4) a registered claim of builder's lien |
(3) a registered mortgage where the registered mortgagee effected registration by fraud
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795. Calculate the amount by which the principal is reduced during the five-year term of a $159,000 mortgage at j12 = 12% with a 20 year amortization period. Assume the monthly payments are rounded to the next higher cent and paid when due. The principal reduction is:
(1) $ 289.11 (2) $ 13,541.84 (3) $145,873.23 (4) $ 13,126.77 |
(4) $ 13,126.77
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797. What is the nominal rate of interest, compounded annually that is equivalent to 11 1/2% per annum, compounded monthly?
(1) 11.2337829579% (2) 11.5% (3) 11.7790667784% (4) 12.1259328138% |
(4) 12.1259328138%
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798. In residential building construction, the term "rafter" refers to:
(1) roof extensions used to provide extra floor area and windows for the upper level. (2) the structural member, usually wood, placed at the top of window openings. (3) a roof style commonly known as a hip roof. (4) none of the above. |
(4) none of the above.
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800. Ernie Parent, an investor in mortgages, would prefer to have a mortgage contract written at which of the
following rates? (1) j2 = 20% (2) j1 = 21% (3) Neither (1) nor (2) (4) Either (1) or (2) |
(4) Either (1) or (2)
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801. Which one of the following statements correctly describes the manner in which taxes are adjusted?
(1) If the vendor has already paid the current year's taxes, the vendor must be debited with the taxes from the adjustment date to December 31st. (2) If the taxes are overdue and a penalty is owing, both the amount of the taxes and the penalty must be apportioned between the purchaser and the vendor. (3) If the taxes are not yet due, no adjustment is made until the tax statement invoice arrives. (4) None of the above. |
(4) None of the above.
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The next TWO (2) QUESTIONS are based on the
following information: Comparable Subject Property Property Number of bedrooms 3 Number of bathrooms 2 Garage Yes View No Square feet 2,300 Sale price $147,300 Adjustments Bedrooms + $4,200 Bathrooms $2,600 Garage 0 View + $9,000 Square feet +$13,500 The market value of 1 bedroom is $4,200; 1 bathroom is $2,600; a garage is $13,500; a view is $9,000; above a 1,900 sq. ft. benchmark, each 100 sq. ft. is worth $4,500. 802. From the information provided above, it can be concluded that the subject property has: (1) four bedrooms, a garage, and a view. (2) four bedrooms, 1 bathroom, and no garage. (3) two bedrooms, 3 bathrooms, and a view. (4) two bedrooms, no garage, and a view. 803. The area of the subject property is approximately: (1) 2,300 square feet. (2) 2,000 square feet. (3) 2,200 square feet. (4) 2,600 square feet. |
802. (1) four bedrooms, a garage, and a view.
803. (4) 2,600 square feet. |
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804. Which of the following statements about the fee simple estate are TRUE?
A. The term "fee" means that the rights exercisable by the holder of a fee simple estate have been acquired by a payment of money. B. Where the owner of a fee simple estate dies without a will, the property will "escheat" to the Crown. C. Where the owner of a fee simple estate creates a life estate in that property in favour of some person, the fee simple estate will cease to exist. D. A fee simple estate is an estate which is held for a limited period of time. (1) B and C are true. (2) B and D are true. (3) None of the above is true. (4) A is true. |
(3) None of the above is true.
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805. Which of the following statements concerning the equitable jurisdiction of the court are TRUE?
A. The rules of equity developed as a remedy for the rigidity of the common law in England. B. Where the rules of equity and common law conflict, the court will apply the common law rule. C. Equitable remedies are available to parties in a court action as of right, regardless of their conduct. D. Specific performance, injunctions and legal damages are three types of equitable remedies. (1) A, B and D are true. (2) B and C are true. (3) Only A is true. (4) All of the above are true. |
A. The rules of equity developed as a remedy for the rigidity of the common law in England.
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806. The duty to repair commercial premises
A. is generally a landlord's obligation unless the lease specifies otherwise. B. is not imposed by the common law on a tenant except for an implied covenant to treat the leased premises in a tenant-like manner and to deliver up the premises as he or she found them, "wear and tear excepted". C. should be dealt with in writing in a lease to avoid disputes between lessee and lessor. D. is enforceable by a court only if the lease is in writing and registered in the Land Title Office as required by the Land Title Act. Which of the above statements is FALSE? (1) Only B and C are false. (2) Only A and D are false. (3) None of the above are false. (4) Only C is false. |
(2) Only A and D are false.
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807. A holding property was purchased ten years ago for $23,000. How much must it sell for now if the owner is to realize a pre-tax yield of j2 = 18%?
(1) $120,378.22 (2) $ 54,449.37 (3) $ 86,684.57 (4) $128,901.45 |
(4) $128,901.45
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808. Which of the following is NOT a requirement for an enforceable contract of purchase and sale?
(1) deposit (2) description of property sold (3) names of the parties (4) description of the price and financing |
(1) deposit
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809. Which of the following statements about periodic tenancies are FALSE?
A. Where a tenant "overholds" a fixed term commercial lease and the landlord continues to accept the rent a periodic tenancy is created. B. Where a periodic tenancy is created as a result of a tenant overholding a fixed term commercial lease, the resulting periodic tenancy will be on all the same terms as the fixed term lease except the rent will be increased by ten percent. C. Where a fixed-term residential tenancy expires it will automatically convert to a month to month periodic tenancy unless the parties have agreed in writing that it will not do so, at the time they entered into a fixed term tenancy agreement. D. Where a periodic tenancy is created at the end of a term-certain commercial lease of five years the new periodic tenancy will always be for a term of five years. (1) A and B are false. (2) B, C and D are false. (3) B and C are false. (4) B and D are false. |
(4) B and D are false.
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811. The significant characteristics of improved land are:
A. its immobility. B. the durability of its improvements. C. the indivisibility of ownership. D. the divisibility of services it provides. Which of the following statements is TRUE? (1) Only A, B and D are true. (2) Only A and C are true. (3) Only A and B are true. (4) Only A, B and C are true. |
(3) Only A and B are true.
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812. Governments pass statutes in order to:
(1) change the common law. (2) develop a system of precedent. (3) alter the constitutional allocation of legislative authority between the federal and provincial governments. (4) do all of the above. |
(1) change the common law.
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813. When a property is taken in trade by the vendor as part payment of the purchase price:
(1) the value of the traded property is listed as a credit to the purchaser and a debit to the vendor. (2) there must be two separate statements of adjustment made for each of the properties. (3) the value of the traded property must be confirmed by the Registrar of the Land Title Office. (4) all of the above are true. |
(1) the value of the traded property is listed as a credit to the purchaser and a debit to the vendor.
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816. A local mortgage broker arranged a mortgage in the amount of $210,000. The borrower has agreed to pay
a brokerage fee in the amount of $7,200 which is to be added to the loan amount, giving a face value of $217,200 for the loan. The mortgage bears interest at a contract rate of 11.5% per annum, compounded monthly. The mortgage has an amortization period and term of 20 years and calls for monthly payments rounded to the next higher cent. If the mortgage is to be sold to an investor for $220,500 immediately after the loan is initiated, the investor will earn the following nominal interest rate, with semi-annual compounding (j2): (1) 12.7130484631% (2) 0.938978904% (3) 11.2677468497% (4) 11.5355861939% |
(4) 11.5355861939%
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817. Which of the following items would appear on the purchaser's statement of adjustments as debits?
(1) purchase price, legal fees for assumption of mortgage and balance due to complete (2) deposit paid, purchaser's share of taxes paid and cash proceeds of sale (3) assumption of first mortgage, deposit paid and balance due to complete (4) purchaser's share of taxes paid, purchase price and legal fees for assumption of mortgage |
(4) purchaser's share of taxes paid, purchase price and legal fees for assumption of mortgage
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The following THREE (3) QUESTIONS relate to the fact pattern given below. Karl has agreed to buy Whiteacre from Anya for $448,000. He has deposited $25,000 with the notary public who will prepare the conveyance. The brokerage’s commission is 5% on the first $100,000 and 1.5% on the balance of the purchase price.
Property taxes are not yet due. The taxes in 1999 were $1,324 and the notary public has told Karl to expect a 10% increase in that amount for the 2005 taxes. The completion and adjustment dates are February 18, 2005. There are two mortgages on the vendor's land. Karl is assuming Anya's first mortgage in the amount of $123,544. Karl has arranged a second mortgage through the Banque Nationale de Paris, in the amount of $98,000. The balance of the purchase price will be paid in cash out of proceeds from the sale of Karl's other property. Anya will pay out her existing second mortgage of $23,000 from the proceeds of this transaction. The notary's fees are $700 for the conveyance, $250 for preparation of Karl's new mortgage and $75 for discharging Anya's second mortgage. 818. The property tax amount to be paid in 2005 will appear on the vendor's statement of adjustments as a: (1) debit in the amount of $174.12 (2) credit in the amount of $1,264.87 (3) credit in the amount of $191.52 (4) debit in the amount of $191.53 819. The cash proceeds of sale which will be received by the vendor on the completion date are (1) $265,969.47 (2) $290,969.47 (3) $289,469.47 (4) $292,469.47 820. The balance due to complete on the purchaser's statement of adjustments is (1) $200,314.47 (2) $265,969.47 (3) $202,214.47 (4) $200,264.47 |
818. (4) debit in the amount of $191.53
819. (2) $290,969.47 820. (3) $202,214.47 |
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823. Dave has recently been hired at a new job, and is starting to make investments with his excess income. Dave's first investment is to place $5,000 in a term deposit where it will accrue interest at a rate of 6.5% per annum, compounded annually. The term of the investment is 18 months. How much money will Dave receive from the investment at the end of the 18 month term?
(1) $5,487.50 (2) $5,473.55 (3) $5,495.34 (4) $5,503.52 |
(3) $5,495.34
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824. The term "fee simple"
A. refers to a type of estate in land. B. indicates something less than absolute ownership of land. C. describes an unencumbered or clear title to land. D. was abolished by the Land Title Act. Which of the above statements are TRUE? (1) A and B are true. (2) Only A is true. (3) A and C are true. (4) All of the above are true. |
(1) A and B are true.
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825. Accurate Appraiser is valuing a townhouse using the market comparison approach. A house recently sold for $175,000, comprised of $85,000 cash and a $90,000 vendor take-back mortgage written at 15% per annum, compounded semi-annually, with monthly payments sufficient to amortize the loan over 25 years and with a term of 5 years. At the time that the house sold the market rate for similar mortgages was 17% per
annum, compounded semi-annually. What price should Accurate Appraiser use if this sale is to be used as a comparable? (1) $ 175,000.00 (2) $ 165,540.35 (3) $ 84,330.13 (4) $ 169,330.13 |
(4) $ 169,330.13
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826. Which of the following is NOT an exception to the principle of indefeasibility under the B.C. Torrens system
of land registration? (1) a lien for unpaid provincial taxes (2) a public right-of-way in favour of B.C. Hydro and Power Authority (3) a registered fee simple acquired bona fide for value without knowledge of an earlier fraudulent dealing in the fee simple title. (4) a right of expropriation under a B.C. statute |
(3) a registered fee simple acquired bona fide for value without knowledge of an earlier fraudulent dealing in the fee simple title.
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828. Which of the following statements is TRUE?
(1) A term in a commercial lease which is contrary to the terms of the Commercial Tenancy Act is void and can only be enforced by the landlord if he has reasonable cause to do so. (2) The implied covenant of quiet enjoyment at common law means that the tenant has a right of privacy. (3) A tenant is usually responsible for reasonable wear and tear to the premises, unless otherwise stated in the lease. (4) The doctrine of "interesse termini" is a common law rule stating that no estate in land passes until the tenant enters into possession of the leased premises. |
(4) The doctrine of "interesse termini" is a common law rule stating that no estate in land passes until the tenant enters into possession of the leased premises.
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829. Which of the following pieces of information is NOT required to be included in a transaction record sheet?
(1) the nature of the real estate transaction (2) the financial institution involved in the transaction (3) the true consideration paid (4) the amount of commission paid |
(2) the financial institution involved in the transaction
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830. When a judge in the B.C. Supreme Court exercises equitable jurisdiction:
(1) he or she may refuse to apply any law which is unfair. (2) he or she may grant such remedies as specific performance or an injunction. (3) he or she may refer to a code to ascertain the law on a particular matter. (4) he or she may do all of the above. |
(2) he or she may grant such remedies as specific performance or an injunction.
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831. A collateral advantage given with a mortgage will be declared unenforceable by the courts if:
(1) it is unfair or oppressive. (2) it is in the nature of a penalty. (3) it is unduly restrictive. (4) any of the above applies. |
(4) any of the above applies.
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832. Which of the following are statutory remedies available to an owner of a strata lot who is dissatisfied with certain actions or omissions of the strata corporation?
A. An owner may sue the strata corporation. B. A court may order the appointment of an administrator in extreme cases. C. An owner may withhold payment of his proportionate share of common expenses. D. An owner may file a lien against the strata corporation. (1) A, B, C and D. (2) Only A and C. (3) Only A, B and C. (4) Only A and B. |
(4) Only A and B.
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835. Which of the following are examples of equitable mortgages?
A. a mortgage disguised as a transfer of land, where the "sale" price is below market value B. a mortgage which, for procedural reasons only, is unregistrable in the land title office C. an agreement to execute a mortgage in the future under which the borrower has already received the principal amount D. a mortgage registered second in priority to another mortgage (1) A, B and C (2) A and B (3) Only D (4) All of the above. |
(4) All of the above.
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836. The doctrine of privity of contract:
(1) creates the right of a third party to sue on a contract. (2) only applies to contracts creating an interest in land. (3) does not apply to bare licences. (4) does not apply to contracts where an interest in land is created. |
(4) does not apply to contracts where an interest in land is created.
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837. Under the Canadian Electrical Code, houses of more than 80 m2 must have an electrical service capacity of not less than:
(1) 100 amps. (2) 125 amps. (3) 150 amps. (4) There is no minimum requirement of electrical service capacity; it is up to the discretion of the builder. |
(1) 100 amps.
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838. Which one of the following factors would make a property owner eligible to apply for deferral of real property taxes?
(1) The property owner is a member of parliament. (2) The property owner is a divorcee. (3) The property owner is a widower. (4) The property owner is a war veteran. |
(3) The property owner is a widower.
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841. Which of the following is an interest in land that can be valued?
(1) an easement or right-of-way (2) airspace above land (3) a tenancy agreement (4) all of the above |
(4) all of the above
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843. Consider a $75,000 loan requiring a 25-year amortization period and monthly payments. Assuming that the interest rate on the loan is j2 = 17% and given that payments are rounded up to the next higher $100, what is the amount of the final payment?
(1) $ 240.67 (2) $ 342.33 (3) $1,042.34 (4) $ 859.33 |
(1) $ 240.67
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844. An investor invests $7,200 in a savings account which bears interest at a rate of 20% per annum, compounded daily. What amount will be on hand at the end of 2 years?
(1) $10,368.00 (2) $10,705.79 (3) $10,541.52 (4) $10,739.96 |
(4) $10,739.96
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846. One or more of the following statements are TRUE.
A. A real estate licensee may safely ignore the requirement of writing established by section 59 (3)(a) of the Law and Equity Act so long as the purchaser and the vendor agree on the terms of sale. B. A contract respecting land or a disposition of land which does not satisfy the requirement of writing contained in section 59 of the Law and Equity Act is void. C. A court may order restitution or compensation when it decides that a contract cannot be enforced because of the requirements of section 59 of the Law and Equity Act. D. The court has the power to enforce an oral contract respecting a disposition of land if necessary, to avoid an inequitable or unfair result where the party relying on the contract has substantially altered his position. Which of the above statements are TRUE? (1) B and C are true. (2) A, B and D are true. (3) C and D are true. (4) B, C and D are true. |
(3) C and D are true.
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851. Joe and Sue Mortgagor wish to purchase a house. Joe's gross income is $18,000 and Sue's gross income is $16,000. The house they wish to purchase has a price of $60,000. Ripley Finance Company has told the Mortgagors that they can supply uninsured mortgage funds for the house at j2 = 17.5%, with a term and
amortization of 25 years, and monthly payments. They have determined that the house has a lending value of $57,000, and annual property taxes are $1,068. Ripley uses a policy of requiring a 30% gross debt service ratio, and will lend to a maximum of 75% loan-to-value. In the calculation of gross income, Ripley includes 100% of the principal wage-earner's income, and 75% of the secondary wage earner's income. Calculate the maximum loan the Mortgagors can expect (rounded to the nearest dollar). (1) $45,000 (2) $42,750 (3) $46,243 (4) $52,469 |
(2) $42,750
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852. Joe Adjustment has arranged for a mortgage in the amount of $60,000, at a rate of 14.75% per annum, compounded semi-annually. It is to be fully amortized over 20 years by constant monthly payments. The funds are to be advanced on January 20, with monthly payments commencing on March 1. Calculate the interest adjustment payment due on February 1, if $60,000 is advanced on January 20. Assume that it is NOT a leap year.
(1) $304.90 (2) $257.89 (3) $281.39 (4) $759.93 |
(3) $281.39
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853. Which of the following statements concerning government regulations of privately owned land is true?
(1) The provincial government and the federal government together have legislative authority over most privately owned land in Canada. (2) The provincial governments have delegated their authority over privately owned land to local governments, and at present they retain no authority for regulating uses of privately owned land within the provinces. (3) Local governments derive their powers to regulate privately owned land use from the provincial government and may only exercise the specific powers delegated to them. (4) In British Columbia all local governments derive their authority to control privately owned land use from the Local Government Act. |
(3) Local governments derive their powers to regulate privately owned land use from the provincial government and may only exercise the specific powers delegated to them.
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854. Two neighbours, Ms. Finch and Mr. Falcon, each sold their homes last week. Ms. Finch sold her house
for $150,000, while Mr. Falcon's house only sold for $132,000. Mr. Falcon can't understand why his house sold for less since both homes are identical in all respects. Which of the following could account for the difference in selling price? (1) Ms. Finch had already purchased another home and needed to sell this home immediately. (2) Mr. Falcon had already purchased another home and needed to sell this home immediately. (3) Mr. Falcon supplied a vendor take-back mortgage of 13% while the current market rate was 16%. (4) All of the above factors could account for the difference in selling price. |
(2) Mr. Falcon had already purchased another home and needed to sell this home immediately.
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856. Which of the following statements concerning the common law doctrine of the void deed is FALSE?
A. A rightful owner of land whose title deed was "transferred" by a void deed could recover his title if he began his court action within the 20 year limitation period and he proved to a court that he was, in fact, the rightful owner. B. A current fee simple "owner" under a void deed had no remedy other than to seek compensation from the government and the forger from whom he bought the land, if he lost his land title to its rightful owner. C. A deed given in exchange for illegal consideration is not a void deed. D. There was no certainty of title for a purchaser of land until the 20 year limitation period for lawsuits to recover a land title transferred by a void deed had expired. (1) A, B, C and D. (2) Only B and C. (3) Only B, C and D. (4) None of the above are false. |
(2) Only B and C.
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857. Which of the following two statements is/are TRUE?
Two identical houses in Amble Greene, a neighbourhood in Surrey, B.C., may have different appraised values because: A. one property has a neatly cut lawn and the other grows tall grass. B. one property faces North; the other South. (1) Only A is true. (2) Only B is true. (3) Both A and B are true. (4) Neither A nor B are true. |
(2) Only B is true.
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858. Given a nominal rate of interest of 12.921%, the greater the frequency of compounding:
(1) the lower the payments to the borrower. (2) the lower the effective annual rate. (3) the higher the rate per compounding period. (4) the higher the yield to the lender. |
(4) the higher the yield to the lender.
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859. The federal Competition Act prohibits false or misleading advertising and creates an offence punishable by imprisonment or a fine. Which of the following statements is NOT true concerning this offence?
(1) This offence involves a representation, which could include oral or written representations. (2) All false advertisements made to the public will constitute an offence under the provisions of the Competition Act, even if an inexperienced person would not be misled by the representation. (3) Both the general impression of the representation as well as its literal meaning are relevant in determining whether a breach of the Act has taken place. (4) The person making the representation can escape liability if he or she can show that they honestly believed the statement to be true and took reasonable steps to ensure its truth. |
(2) All false advertisements made to the public will constitute an offence under the provisions of the Competition Act, even if an inexperienced person would not be misled by the representation.
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860. Which of the following events will terminate a real estate agency relationship?
(1) actions of an agent which exceed the terms of the agent's authority under the listing agreement. (2) a failure by the agent to present all offers to the principal. (3) an offer by the agent to purchase for herself the principal's property. (4) an act of the principal which is inconsistent with the continuation of the agent's authority. |
(4) an act of the principal which is inconsistent with the continuation of the agent's authority.
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861. A contract between the vendor of real estate and the purchaser whereby the vendor agrees to sell his/her interest in that land to the purchaser for a specified price payable in installments and, upon payment of the price in full, to transfer title to the purchaser is called:
(1) an equitable mortgage. (2) an agreement of purchase and sale. (3) an agreement for sale. (4) a disguised form of mortgage. |
(3) an agreement for sale.
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864. A $195,000 mortgage loan was written one year ago at 17 3/4% per annum, compounded monthly. At the
end of its 5 year term, the borrower will owe $191,591.33 on the loan. What is the amount of each monthly payment, rounded to the next higher cent? (1) $2,719.06 (2) $4,925.24 (3) $2,920.05 (4) $2,933.65 |
(3) $2,920.05
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867. Which one of the following is FALSE? An agent's authority to act on behalf of his principal may arise:
(1) expressly. (2) contingently. (3) by implication. (4) by ratification. |
(2) contingently.
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868. A borrower approaches Ripley Finance Company about a mortgage on an income-producing property. The property produces an annual net operating income of $112,500. The lending value of the property is $880,000. Ripley will only lend to a maximum of 80% loan-to-value ratio, and requires a minimum debt coverage ratio of 1.25. Ripley's terms are: j12 = 12%, a term and amortization period of 15 years, and monthly payments. Given these constraints, calculate the maximum allowable loan (rounded to the nearest dollar).
(1) $624,912 (2) $660,000 (3) $976,426 (4) $634,728 |
(1) $624,912
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869. Which of the following are examples of legal non-conforming uses?
A. A basement suite in an area near a university which has been zoned for single family dwellings for over 20 years. The suite has been in existence for 15 years and the municipality is aware of it. B. A 25 year old corner grocery which is located in an area where the original zoning was changed from multi-family to single family two years ago. C. A long-established factory in an area which has just been rezoned from industrial to residential. D. A ski rental shop operating for 5 months of the year in an area which has just been rezoned to residential. (1) A and D are legal non-conforming uses. (2) A, B and C are legal non-conforming uses. (3) B and C are legal non-conforming uses. (4) C and D are legal non-conforming uses. |
(4) C and D are legal non-conforming uses.
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870. One or more of the following statements are false. A tenancy agreement as statutorily defined:
A. usually entitles a landlord to exercise the right to distrain a tenant's goods for arrears of rent. B. requires a tenant to carry out all repairs and maintenance of the leased premises. C. must always be registered in the Land Title Office to secure a tenant's rights against subsequent owners of the leased premises. D. must meet certain statutory requirements under the Commercial Tenancy Act of British Columbia. Which of the above statements are FALSE? (1) Only B is false. (2) Only A and D are false. (3) None of the above statements are false. (4) All of the above statements are false. |
(4) All of the above statements are false.
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871. In which of the following situations is manufactured home registration NOT required?
(1) Where the manufactured home is owned by a dealer. (2) Where the manufactured home is to be moved. (3) Where the manufactured home is to be sold. (4) Where the manufactured home is on land belonging to the owner. |
(4) Where the manufactured home is on land belonging to the owner.
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872. Different heating systems have different advantages and disadvantages. Which of the following are advantages of a wood-fired space heater?
A. reduced overall heating expense B. steady consistent heat C. provides both radiant and convection heat (1) A only (2) A and B (3) A and C (4) B and C |
(3) A and C
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873. Which of the following is NOT a power or duty of the Real Estate Council?
(1) Levying fees on all licensees in order to meet the Council's expenses. (2) Holding disciplinary hearings. (3) Collecting premiums and assessments from licensees on behalf of the Real Estate Errors and Omissions Insurance Corporation. (4) Undertaking and carrying out real estate law reform. |
(4) Undertaking and carrying out real estate law reform.
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876. Which of the following could a defendant use as a defence to a claim in negligence against him?
(1) The defendant did not intend to cause injury or damage to the plaintiff. (2) The defendant breached the standard of care owed to the plaintiff. (3) The damage suffered by the plaintiff was not reasonably foreseeable by a person in the defendant's position. (4) The act of the defendant was authorized by statute. |
(3) The damage suffered by the plaintiff was not reasonably foreseeable by a person in the defendant's position.
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877. Which of the following is FALSE with respect to the law of contract?
(1) Subject to some exceptions, only the parties to a contract have a right to sue or be sued for breach of the contract. (2) The burden or liability under a contract may be assigned, provided that the requirements of the Law and Equity Act are met. (3) A contract which creates an interest in land is one of the exceptions to the doctrine of privity of contract. (4) A statutory assignment must be in writing, must be absolute and unconditional, and notice in writing of the assignment must be given to the original promisor. |
(2) The burden or liability under a contract may be assigned, provided that the requirements of the Law and Equity Act are met.
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878. George bought two units in a ten unit condominium project. Within one week of the completion of this purchase some other condominium owners, the Smithe family, were killed in an accident in the jacuzzi whirlpool. Mrs. Smithe was the sole survivor of this family. The pool is located on the common property in which George now owns an interest. Mrs. Smithe is suing the strata corporation and George is concerned about the extent of his liability for any damage award she may receive. Assuming that the strata corporation is found liable to Mrs. Smithe, which of the following statements correctly describes George's liability?
A. George must pay his proportionate liability for any judgment registered against the common property of the strata corporation. B. George will owe Mrs. Smithe absolutely nothing as the Strata Property Act contains provisions requiring all strata corporations to obtain and maintain liability insurance to insure against this type of occupiers liability. C. The Strata Property Act requires the strata corporation to pay out Mrs. Smithe's judgment from its contingency reserve fund. George will pay only his proportionate share of any amount left unpaid after the reserve fund is used up. D. Because George has not owned the units for a minimum of two weeks before the accident occurred, he is not responsible to pay any proportionate amount of the judgment. |
(1) Only A.
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879. David Jones is being sued by a neighbour for creating a nuisance and causing damage to the neighbour's property. He advises you that
A. he has taken the utmost care and exercised skill in carrying on the activity causing the nuisance. B. the damage caused is trifling. C. he has authority under a municipal business licence to carry on the activity. D. he is using his property reasonably. Which of the above will NOT be a valid defence to the lawsuit? (1) A, B, C and D. (2) A, C and D. (3) B and D. (4) Only B. |
(2) A, C and D.
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868. A borrower approaches Ripley Finance Company about a mortgage on an income-producing property. The property produces an annual net operating income of $112,500. The lending value of the property is $880,000. Ripley will only lend to a maximum of 80% loan-to-value ratio, and requires a minimum debt coverage ratio of 1.25. Ripley's terms are: j12 = 12%, a term and amortization period of 15 years, and monthly payments. Given these constraints, calculate the maximum allowable loan (rounded to the nearest dollar).
(1) $624,912 (2) $660,000 (3) $976,426 (4) $634,728 |
(1) $624,912
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869. Which of the following are examples of legal non-conforming uses?
A. A basement suite in an area near a university which has been zoned for single family dwellings for over 20 years. The suite has been in existence for 15 years and the municipality is aware of it. B. A 25 year old corner grocery which is located in an area where the original zoning was changed from multi-family to single family two years ago. C. A long-established factory in an area which has just been rezoned from industrial to residential. D. A ski rental shop operating for 5 months of the year in an area which has just been rezoned to residential. (1) A and D are legal non-conforming uses. (2) A, B and C are legal non-conforming uses. (3) B and C are legal non-conforming uses. (4) C and D are legal non-conforming uses. |
(4) C and D are legal non-conforming uses.
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870. One or more of the following statements are false. A tenancy agreement as statutorily defined:
A. usually entitles a landlord to exercise the right to distrain a tenant's goods for arrears of rent. B. requires a tenant to carry out all repairs and maintenance of the leased premises. C. must always be registered in the Land Title Office to secure a tenant's rights against subsequent owners of the leased premises. D. must meet certain statutory requirements under the Commercial Tenancy Act of British Columbia. Which of the above statements are FALSE? (1) Only B is false. (2) Only A and D are false. (3) None of the above statements are false. (4) All of the above statements are false. |
(4) All of the above statements are false.
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871. In which of the following situations is manufactured home registration NOT required?
(1) Where the manufactured home is owned by a dealer. (2) Where the manufactured home is to be moved. (3) Where the manufactured home is to be sold. (4) Where the manufactured home is on land belonging to the owner. |
(4) Where the manufactured home is on land belonging to the owner.
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872. Different heating systems have different advantages and disadvantages. Which of the following are advantages of a wood-fired space heater?
A. reduced overall heating expense B. steady consistent heat C. provides both radiant and convection heat (1) A only (2) A and B (3) A and C (4) B and C |
(3) A and C
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873. Which of the following is NOT a power or duty of the Real Estate Council?
(1) Levying fees on all licensees in order to meet the Council's expenses. (2) Holding disciplinary hearings. (3) Collecting premiums and assessments from licensees on behalf of the Real Estate Errors and Omissions Insurance Corporation. (4) Undertaking and carrying out real estate law reform. |
(4) Undertaking and carrying out real estate law reform.
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876. Which of the following could a defendant use as a defence to a claim in negligence against him?
(1) The defendant did not intend to cause injury or damage to the plaintiff. (2) The defendant breached the standard of care owed to the plaintiff. (3) The damage suffered by the plaintiff was not reasonably foreseeable by a person in the defendant's position. (4) The act of the defendant was authorized by statute. |
(3) The damage suffered by the plaintiff was not reasonably foreseeable by a person in the defendant's position.
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877. Which of the following is FALSE with respect to the law of contract?
(1) Subject to some exceptions, only the parties to a contract have a right to sue or be sued for breach of the contract. (2) The burden or liability under a contract may be assigned, provided that the requirements of the Law and Equity Act are met. (3) A contract which creates an interest in land is one of the exceptions to the doctrine of privity of contract. (4) A statutory assignment must be in writing, must be absolute and unconditional, and notice in writing of the assignment must be given to the original promisor. |
(2) The burden or liability under a contract may be assigned, provided that the requirements of the Law and Equity Act are met.
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878. George bought two units in a ten unit condominium project. Within one week of the completion of this purchase some other condominium owners, the Smithe family, were killed in an accident in the jacuzzi whirlpool. Mrs. Smithe was the sole survivor of this family. The pool is located on the common property in which George now owns an interest. Mrs. Smithe is suing the strata corporation and George is concerned about the extent of his liability for any damage award she may receive. Assuming that the strata corporation is found liable to Mrs. Smithe, which of the following statements correctly describes George's liability?
A. George must pay his proportionate liability for any judgment registered against the common property of the strata corporation. B. George will owe Mrs. Smithe absolutely nothing as the Strata Property Act contains provisions requiring all strata corporations to obtain and maintain liability insurance to insure against this type of occupiers liability. C. The Strata Property Act requires the strata corporation to pay out Mrs. Smithe's judgment from its contingency reserve fund. George will pay only his proportionate share of any amount left unpaid after the reserve fund is used up. D. Because George has not owned the units for a minimum of two weeks before the accident occurred, he is not responsible to pay any proportionate amount of the judgment. |
(1) Only A.
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879. David Jones is being sued by a neighbour for creating a nuisance and causing damage to the neighbour's property. He advises you that
A. he has taken the utmost care and exercised skill in carrying on the activity causing the nuisance. B. the damage caused is trifling. C. he has authority under a municipal business licence to carry on the activity. D. he is using his property reasonably. Which of the above will NOT be a valid defence to the lawsuit? (1) A, B, C and D. (2) A, C and D. (3) B and D. (4) Only B. |
(2) A, C and D.
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881. A company pays $97,835 for an asset on which the Income Tax Act allows capital cost allowance at 5% per year. The asset is expected to have a useful life of 25 years and will have no salvage value at the end of this time. Calculate the depreciation expense for accounting purposes for the asset's third year if the accountant chooses to use straight-line depreciation.
(1) $3,913.40 (2) $4,414.80 (3) $4,891.75 (4) $4,505.41 |
(1) $3,913.40
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882. In British Columbia there are three basic requirements for an easement. Which of the following is one of the requirements?
(1) the easement is negative in effect (2) the easement has identifiable or defined boundaries (3) there must be a servient tenement adjoining a dominant tenement (4) the grantor must be in actual occupation of the servient tenement at the time he or she grants the easement |
(2) the easement has identifiable or defined boundaries
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883. When an Order Absolute of Foreclosure is obtained by a petitioner who is in the position of second mortgagee:
A. that mortgagee can no longer exercise its right to sue the borrower on his or her personal covenant. B. the order forecloses the registered owner's interest in the mortgaged land and permits the petitioner to transfer title into his or her own name. C. all other charges, liens, encumbrances and interests registered on the borrower's title are foreclosed or "wiped" off the title. D. the petitioner may sell the property after taking title to it and does not have to account to the borrower for any profit which might be realized in excess of the mortgage debt. Which of the above statements is/are TRUE? (1) Only A and B are true. (2) Only A, C, and D are true. (3) Only A, B, and D are true. (4) All of the above statements are TRUE. |
(3) Only A, B, and D are true.
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885. A friend of yours is looking for an ISP provider that allows deep linking. Which of the following best defines a deep link?
(1) A deep link is a link that requires users to enter a password before information is transmitted. (2) A deep link is a link that takes a user directly to their email program. (3) A deep link is a link that takes a user to any location within another website, not just the homepage. (4) A deep link is a link that indexes and categorizes a large amount of real estate data. |
(3) A deep link is a link that takes a user to any location within another website, not just the homepage.
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886. When a real estate licensee advertises for sale property owned by herself, the licensee:
(1) is required by the Real Estate Services Act to disclose the name of her brokerage. (2) should identify another licensee as the listing brokerage or selling licensee. (3) should be personally identified as a licensee as required by the Real Estate Services Act. (4) is not required to reveal the situation in the advertisement as long as the name, address and phone number of the licensee's firm or place of business is not used. |
(4) is not required to reveal the situation in the advertisement as long as the name, address and phone number of the licensee's firm or place of business is not used.
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888. Which of the following statements about trust accounts under the Real Estate Services Act is FALSE?
(1) A brokerage must have a trust account for each client. (2) All client funds must be placed in a trust account as soon as they are received by the brokerage. (3) Money paid by mistake into trust may be withdrawn from the trust account. (4) Money paid for expenses incurred on behalf of a client and according to the client’s instructions may be withdrawn from the trust account. |
(1) A brokerage must have a trust account for each client.
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889. Fancy Finance Corporation has agreed to advance $370,000 to a real estate developer for 30 days.
Alternatively, Fancy Finance could have earned an effective annual rate of 16% on the funds if they invested elsewhere. What is the minimum amount that Fancy Finance should receive from the developer in 30 days? (1) $374,896.81 (2) $374,933.33 (3) $374,541.24 (4) Cannot be determined from the information given. |
(3) $374,541.24
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895. Jake Touche wants to purchase a house that is listed for $76,000. The bank's appraiser estimates that the lending value of the property is $71,000. Jake's gross income is $30,000 per year. The bank applies a 70% loan-to-value ratio and a gross debt service ratio of 30%. Property taxes amount to $1,200 per year. Assume that the lender demands a 25 year amortization period and
monthly payments at j2 = 15%. How much can Jake borrow? (1) $49,700 (2) $52,160 (3) $56,173 (4) $48,148 |
(1) $49,700
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896. Which of the following is NOT a component of the British Columbia land title registration system?
(1) the assurance principle (2) the doctrine of the void deed (3) abolition of the doctrine of notice (4) indefeasibility of registered fee simple titles |
(2) the doctrine of the void deed
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897. There are several procedural steps taken before a lawsuit is actually brought before a judge. Some of these
procedures are called: A. filing and serving a statement of claim B. entering an appearance C. service of the writ of summons D. conducting examinations for discovery Which of the following is the correct chronological order of the above? (1) A, B, C, D (2) C, A, D, B (3) B, D, A, C (4) C, B, A, D |
(4) C, B, A, D
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899. The Real Estate Services Act achieves its primary purpose in a number of ways, including:
A. setting out sales procedures which must be followed by all licensees in order to keep their licenses. B. establishing a body called the Real Estate Council of British Columbia which administers the details under the Act. C. requiring that all representatives and brokerages be licensed. D. providing for subdivision regulation by requiring all developers to supply a disclosure statement. Which of the above statements are TRUE? (1) Only A and C are true. (2) Only A, B and D are true. (3) Only A, B and C are true. (4) Only B and C are true. |
(3) Only A, B and C are true.
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900. Which of the following items would appear on the vendor's statement of adjustments as debits?
(1) assumption of mortgage, purchaser's share of taxes paid and discharge of second mortgage. (2) real estate commission, cash proceeds of sale and sale price. (3) legal fees for discharge of second mortgage, sales commission and assumption of first mortgage. (4) assumption of mortgage, purchaser's share of taxes paid and cash proceeds of sale. |
(3) legal fees for discharge of second mortgage, sales commission and assumption of first mortgage.
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901. In the case of a proprietorship, which one of the following accounts represents the "link between the income statement and the balance sheet"?
(1) net income (2) net assets (3) depreciation expense (4) retained earnings |
(1) net income
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902. Which of the following is NOT an element of the tort of negligent misrepresentation?
(1) a statement of fact or opinion given negligently (2) reasonable reliance on the statement by the person to whom it is given (3) a contractual relationship between the parties (4) no clear qualification by the speaker that he or she disclaims any liability for the accuracy of the statement |
(3) a contractual relationship between the parties
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903. Mombasa Logging Company wants to borrow money to build a head office building in Victoria. The
company plans to occupy one floor of the building and rent out the rest. They project that the building's net operating income for the next five years will be $637,500 per year. Current mortgage terms on office building projects are j1 = 14%, amortized over 30 years with quarterly payments. River Bank feels that Mombasa Logging is optimistic in their net operating income projections and has therefore set the required debt coverage ratio at 1.5. What amount (rounded to the nearest thousand dollars) could Mombasa borrow from River Bank? (1) $ 3,128,000 (2) $ 7,038,000 (3) $ 1,043,000 (4) $12,512,000 |
(1) $ 3,128,000
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907. The Competition Act prohibits false or misleading advertising. Which of the following statements
concerning this offence is FALSE? (1) A person or company can be guilty under the Competition Act even though every part of their advertisement is literally true, when the general overall impression is misleading. (2) For a misrepresentation to offend against the Competition Act it must be false or misleading in a material respect. (3) The standard applicable in determining whether a statement is misleading or not is whether a knowledgeable person would be misled. (4) Where an accused can show that he or she had taken all reasonable care to determine the truth of the statement and that he or she honestly believed it to be true, the accused will avoid liability. |
(3) The standard applicable in determining whether a statement is misleading or not is whether a knowledgeable person would be misled.
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908. Which of the following statements concerning occupiers liability is FALSE?
(1) Under the B.C. Occupiers Liability Act, the common law categories of visitor are explicitly retained. (2) At common law, an occupier owed a greater duty to invitees than to licensees. (3) Merely warning children of a danger may not meet the necessary standard of care: an occupier may be obliged to take positive steps to prevent injury to children on his or her premises. (4) There may be more than one occupier of premises at the same time, under the B.C. Occupiers Liability Act. |
(1) Under the B.C. Occupiers Liability Act, the common law categories of visitor are explicitly retained.
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911. Which of the following statements concerning an open listing is FALSE?
(1) Under an open listing a commission will only be paid to the agent who is the effective cause of the sale. (2) The Real Estate Services Act requires all listings to always be in writing. (3) Under an open listing the vendor is free to dispose of the property independently without any liability to pay commission to an agent. (4) Under an open listing a vendor is free to use the services of any number of brokerages. |
(2) The Real Estate Services Act requires all listings to always be in writing.
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912. The "subject clauses" have just been removed from a contract of purchase and sale, but the sale will not complete for another 17 days. Sandy Salesperson has already recorded the commission from the sale as income. Which of the Generally Accepted Accounting Principles was she following?
(1) The matching principle. (2) The cost principle. (3) The consistency principle. (4) The revenue recognition principle. |
(4) The revenue recognition principle.
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914. Which of the following is NOT an example of a situation in which a landlord can end a residential tenancy agreement for cause?
(1) The number of persons permanently occupying a suite is unreasonable. (2) A tenant fails to give the necessary security deposit within 30 days of the date required by the tenancy agreement. (3) The premises must be vacated to allow for renovations which cannot be performed while the premises are occupied. (4) The premises must be vacated to comply with an order made by the local authority regarding zoning. |
(3) The premises must be vacated to allow for renovations which cannot be performed while the premises are occupied.
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915. Richard owns a 2,400 square foot unit in a strata complex. There are 19 other units, the square footage of
which totals 37,600 square feet. The common property has an area of 12,600 square feet. The total common expenses for the year amount to $48,000. What is Richard's monthly share of the common expenses? (1) $596.83 (2) $255.32 (3) $761.90 (4) $240.00 |
(4) $240.00
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918. Which of the following is NOT one of the obligations imposed on a strata corporation under the Strata
Property Act? (1) the obligation to keep the common property in a state of good and serviceable repair (2) the obligation to maintain liability insurance of no less than $5,000,000 on the strata project (3) the obligation to establish a contingency reserve fund for unusual or extraordinary expenses (4) the obligation to establish a fund for payment of administrative expenses of the strata corporation |
(2) the obligation to maintain liability insurance of no less than $5,000,000 on the strata project
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919. Which of the following would NOT be available to a judgment creditor as a means of enforcing a judgment?
(1) examination under oath, of the judgment debtor (2) obtaining a Writ of Execution so that the judgment debtor's car can be seized and sold (3) obtaining and serving a garnishing order on the judgment debtor's bank (4) registering a Writ of Summons in the appropriate land title office against the judgment debtor's property |
(4) registering a Writ of Summons in the appropriate land title office against the judgment debtor's property
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920. Which of the following are TRUE with respect to mortgage default insurance?
A. the insurance company guarantees the borrower will be able to continue to make his mortgage payments without interruption. B. a lender may apply a higher loan to value ratio to an insured loan than an uninsured loan. C. the insurance premium paid on an insured mortgage cannot be added to the loan amount. D. mortgage default insurance is insurance for the lender. (1) A & C (2) B & D (3) A & B & D (4) A & D |
(2) B & D
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922. Sharky's Loan Company has arranged a $17,000 loan. The loan is to commence on August 1st, but the full
amount of the funds will be advanced on July 3rd. The interest rate on the loan is 26% per annum, compounded semi-annually. What is the interest adjustment payment which is due on August 1st? Assume that it is NOT a leap year. (1) $333.38 (2) $326.97 (3) $321.78 (4) $375.52 |
(1) $333.38
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924. Which of the following statements about deposits is FALSE?
(1) A binding contract of purchase and sale cannot be formed unless the offer is accompanied by a deposit. (2) Where an offer is presented with a deposit cheque after banking hours, and the offer is refused by the vendor before the banks open, the deposit cheque may be returned directly to the offeror by the agent. (3) An agent holds deposits as a stakeholder. (4) Agents are not allowed to wait until an offer is accepted before depositing the deposit cheque in the agent's trust account. |
(1) A binding contract of purchase and sale cannot be formed unless the offer is accompanied by a deposit.
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925. A building scheme is a special example of a group of restrictive covenants attaching to two or more lots within a particular development plan. Which of the following statements concerning building schemes is FALSE?
(1) The original purchasers must receive their fee simple title from the same vendor. (2) The vendor must have intended the restrictions to bind each lot. (3) Purchasers must negotiate any exemptions from the application of the building scheme individually prior to purchase. (4) The restrictions must apply equally to all the individual lots and be consistent with a general scheme of development. |
(3) Purchasers must negotiate any exemptions from the application of the building scheme individually prior to purchase.
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927. Which of the following is NOT subject to the provisions of the Residential Tenancy Act?
(1) a residential condominium rented out by the offshore owner (2) an apartment attached to a warehouse rented under a separate lease (3) a basement suite in a private residence (4) a house let for a 29 year term |
(4) a house let for a 29 year term
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930. Which of the following statements concerning listing agreements are TRUE?
A. A listing agreement is a contract between the vendor and the brokerage, the terms of which can be relied on by the purchaser. B. For the brokerage to become entitled to commission, the offer to purchase presented by the brokerage must be substantially in accord with the terms of the listing. C. All owners listed on title must sign the listing contract. D. Where an offer complying exactly with the terms of the listing agreement is presented, the vendor is obliged to accept it. (1) A and C only. (2) A, B and D only. (3) B and C only. (4) C only. |
(4) C only.
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932. Section 52 of the Competition Act prohibits false or misleading advertising. Consider the following
statements about that offence. A. An element of the offence is a "representation to the public", which could include statements made by a licensee over the phone to a purchaser of real estate. B. For a misrepresentation to be contrary to the Act it must be false or misleading in a material respect. C. The Competition Act applies to both oral and written representations. D. To avoid liability where a false or misleading representation has been made, the person accused of the offence must show that he or she took all reasonable care in the circumstances to ensure that the representation was accurate. Which of the following is correct? (1) All of the above statements are true. (2) Only B, C and D are true. (3) Only B and D are true. (4) Only A, B and C are true. |
(2) Only B, C and D are true.
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933. A prospective purchaser signs an offer on a property for $250,000 and mentions to the listing licensee that she would be willing to pay as much as $270,000 for the property if necessary. The listing licensee presents
the offer to the vendor without mentioning that the purchaser may be willing to increase the offer. The vendor accepts the offer of $250,000. Since it is not a dual agency situation, this fact pattern is: (1) an example of the agent's ethical obligation to deal fairly with the purchaser at all times. (2) a breach of the agent's legal and ethical duty of full disclosure to her principal. (3) acceptable conduct on the part of the agent. (4) an example of the agent's duty not to make a secret profit. |
(2) a breach of the agent's legal and ethical duty of full disclosure to her principal.
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934. ABC Loan Co. ("ABC") has agreed to lend $2 million dollars to Devco Ltd. in exchange for a registered first mortgage against Devco's current residential construction project. The loan is to be paid out in four equal instalments over a five month period, but all payments are at the discretion of ABC under the "advances" clause in the mortgage. The first instalment has been paid and it is now time to pay out the second instalment. ABC has discovered that a builder's lien has been filed against Devco's property. You correctly advise ABC that:
(1) it is obligated to pay out the second instalment to Devco; to refuse to do so would be a breach of the mortgage contract. (2) if the second instalment is advanced to Devco, the lien claimant will have priority over this and any other advances made under the mortgage after the date of registration of the lien. (3) the lien cannot take priority over ABC's mortgage because the lien was registered after the mortgage. (4) None of the above statements is correct. |
(2) if the second instalment is advanced to Devco, the lien claimant will have priority over this and any other advances made under the mortgage after the date of registration of the lien.
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936. Equitable remedies are remedies which are within the court's discretion to award. Which of the following is NOT an equitable remedy?
(1) specific performance (2) injunction (3) quantum meruit (4) damages |
(4) damages
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938. What is the nominal rate of interest, compounded semi-annually that is equivalent to 11.5% per annum, compounded monthly?
(1) 5.8895333892% (2) 12.1259328138% (3) 11.7790667784% (4) 11.2337829579% |
(3) 11.7790667784%
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939. A clerk in the land title office mistakenly registered a fee simple transfer on the wrong title, with the result that Lot 5, owned by Michael, was transferred to Scott. Scott discovered this error and, instead of correcting the error, he sold the property to another person who was unaware of the clerical error and of Scott's dishonest conduct. Michael discovered the error after the purchaser had registered the transfer from Scott. He wants his land restored to him and the register corrected. You correctly advise Michael that:
(1) because this situation was caused by a clerical error, the Registrar will correct the register and restore Michael's property to him. (2) the person who bought the property, bona fide and for value, from Scott is protected by the B.C. land title system; as a result, Michael cannot have his property restored to him. (3) Michael contributed to his own loss by neglecting to register a lien on his title to indicate to anyone searching title that he was the registered owner; as a result, he cannot recover damages in a lawsuit against Scott. (4) None of the above statements is correct. |
(2) the person who bought the property, bona fide and for value, from Scott is protected by the B.C. land title system; as a result, Michael cannot have his property restored to him.
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940. According to the Strata Property Act, which of the following statements is TRUE?
(1) A unanimous vote of 100% of the members of a strata corporation is usually required to approve an amendment to the bylaws of the corporation. (2) An estate in fee simple is created for each individual strata lot by the registration, and approval of the registrar of land titles, of a strata plan. (3) The condominium concept can be utilized only for residential projects. (4) Before a strata plan can be registered in the land title office, all of the strata lots must be presold. |
(2) An estate in fee simple is created for each individual strata lot by the registration, and approval of the registrar of land titles, of a strata plan.
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941. A $116,000 mortgage has an interest rate of 15% per annum, compounded semi-annually. It calls for monthly payments sufficient to amortize the loan over a 25 year period. If payments are rounded up to the next higher dollar, what is the amount of the final payment required to fully amortize the loan?
(1) $1,442.50 (2) $ 40.34 (3) $1,405.66 (4) $ 325.11 |
(2) $ 40.34
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942. Which of the following statements concerning mortgages is FALSE?
(1) A mortgage is a loan. (2) A mortgage is an interest in land created by contract. (3) The relationship of the parties to a mortgage is that of debtor and creditor. (4) At common law a first mortgage transferred legal title to the mortgagee. |
(1) A mortgage is a loan.
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943. According to the Real Estate Services Act and regulations, which of the following statements is TRUE?
(1) An individual may commence trading in real estate immediately after receiving proof of passing the real estate licensing exam. (2) All staff employed by a real estate brokerage must be registered with the Real Estate Council. (3) An individual may be registered independently as a real estate representative without being employed by a registered real estate brokerage. (4) A real estate representative is employed by his or her brokerage to trade in real estate in the brokerage’s name, on behalf of the brokerage's clients. |
(4) A real estate representative is employed by his or her brokerage to trade in real estate in the brokerage’s name, on behalf of the brokerage's clients.
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944. Clive and Joyce signed an exclusive listing agreement with Lone Dove Realty Ltd. ("Dove") for the sale of their jointly owned land. The agreement stipulated a price of $450,000 "all cash". Graham, a trading services licensee employed by Dove, presented the vendors with an offer from a purchaser for $450,000 "subject to vendor accepting take-back mortgage of $30,000." The vendors refused this offer and the listing has now expired. Dove feels that it is entitled to a commission notwithstanding that the offer was rejected.
Which of the following statements is TRUE? (1) As a prerequisite to its claim for commission, Dove must prove that it was duly licensed under the Real Estate Services Act at the time the alleged cause of action arose. (2) In the event that Dove was not licensed under the Real Estate Services Act, no commission can be recovered by Dove but the licensee, Graham, can recover commission as an independent licensee. (3) No commission is payable by the vendors because the event stipulated in the listing agreement which would give rise to commission has not occurred. (4) Both (1) and (3) are true. |
(4) Both (1) and (3) are true.
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946. Mac O'Rooney plans to build a small restaurant and requires $275,000 in construction financing. First
Mortgage Co. has agreed to lend the funds in the form of an interest accruing loan. Interest is to be charged at a rate of 11.25% per annum, compounded semi-annually. How much will Mac owe at the end of the 12 month term? (1) $306,807.62 (2) $340,355.45 (3) $305,937.50 (4) unable to determine from the information given. |
(1) $306,807.62
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948. Mr. Johnston's house in Burnville, B.C. has been assessed at $110,000 for property tax purposes. The
following tax rates have been set by the municipality and other taxing authorities: General Tax Rate 5.13 School Tax Rate 4.24 Hospital District Tax Rate 0.137 What will be Mr. Johnston's gross taxes payable on this property? (1) $1,045.77 (2) $ 564.30 (3) $ 950.70 (4) Not enough information is given to determine the gross taxes payable. |
(1) $1,045.77
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953. In a mortgage transaction, the mortgagor is:
(1) the borrower (2) the fee simple owner of the mortgaged property (3) the holder of an equitable right to redeem the mortgaged property (4) all of the above |
(4) all of the above
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956. Which of the following statements is TRUE with respect to residential tenancies under the provisions of the Residential Tenancy Act?
A. A landlord is entitled to give not less than one month written notice of the end of the tenancy agreement to a tenant who, after two months of entering into the tenancy agreement, has failed to give the security deposit required under the agreement. B. In cases of emergency, a landlord has a right of entry to leased premises. C. A landlord is entitled to demand a security deposit not exceeding one-half month's rent. D. With the consent of the landlord, a residential tenant can assign or sublet all or part of the leased premises at any time during the term of the tenancy. E. The Act has imposed on residential tenants a slightly higher duty to repair and maintain leased premises than exists under the common law. (1) All of the above (2) Only C (3) B,D and E (4) B, C, D and E |
(1) All of the above
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959. You have been asked to appraise an apartment building using the income method of appraisal. You have
been given the following data relating to recently sold properties A and B. They are comparable to property C, whose value you must find. Comparables Subject Property A B C Sale Price $234,000 $211,000 ? Gross Potential Rental Income $51,000 $44,000 $48,000 Current Operating Expenses $32,000 $28,000 $30,000 Vacancy $4,080 $3,520 $3,840 Using the limited data found above, estimate the market value for the subject property C. (1) $112,200 (2) $222,100 (3) $230,400 (4) $292,900 |
(3) $230,400
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961. Which of the following statements regarding the effect of registration of a mortgage in a B.C. land title office is TRUE?
(1) The registration of a mortgage in the land title office is conclusive evidence that the mortgagee is entitled to an interest in the land described in the mortgage document. (2) A mortgage which is not registered in the land title office is unenforceable against the parties to the mortgage. (3) Registration of a mortgage raises only a rebuttable presumption that the mortgage is valid; a registered mortgage is not "guaranteed" under the B.C. land registration system. (4) None of the above statements is true. |
(3) Registration of a mortgage raises only a rebuttable presumption that the mortgage is valid; a registered mortgage is not "guaranteed" under the B.C. land registration system.
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964. Which of the following is FALSE with respect to strata lot ownership?
(1) The sole purpose of creating a strata corporation is to limit the liability of the corporation members. (2) The concept of ownership of part of a building is an ancient one, now recognized by provincial legislation. (3) A strata development is a special way of subdividing land and buildings into parts for separate ownership with common features. (4) A strata corporation is permitted to pass a bylaw limiting the number of strata lots which may be leased by the corporation members, where the strata plan is entirely or partially residential. |
(1) The sole purpose of creating a strata corporation is to limit the liability of the corporation members
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965. The total assessed value of all properties in the municipality of Grand River, B.C. is $2,900,765,800. The
municipality needs to raise $13,623,500 through its general tax on real properties to finance its anticipated expenditures this year. All classes of property will be taxed at the same rate. Other taxing authorities have set the following tax rates for taxes to be collected by the municipality of Grand River: School 6.1340 Hospital 0.3728 Regional District 0.0912 Hans Sum purchased his first home in Grand River last year; its assessed value is $123,729. Presuming that no taxes other than the above-mentioned taxes are collected, what will be Hans' gross taxes payable on this property? (1) $ 1,397.46 (2) $ 816.36 (3) $ 1,523.72 (4) $ 581.10 |
(1) $ 1,397.46
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966. A mortgage with a face value of $88,000 and a contract rate of interest of 1.8% per month calls for monthly payments of $1,592. What is the amount owing just after the 40th monthly payment has been made?
(1) $63,217.19 (2) $87,537.19 (3) $87,148.21 (4) $87,520.86 |
(2) $87,537.19
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968. Which of the following statements regarding systems software is TRUE?
(1) Systems software includes the operating system and all the utilities that enable the computer to function. (2) Systems software is the most effective and reliable method of protecting against computer viruses. (3) Systems software combines word processing, client management, calendar and reminder functions and email capabilities all in one. (4) Systems software is commonly used in the real estate industry since it contains real estate clip art and marketing presentation templates. |
(1) Systems software includes the operating system and all the utilities that enable the computer to function.
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972. Which of the following statements about easements are TRUE?
A. The person enjoying the benefit is the dominant tenement. B. The granting of an easement by one landowner to another conveys ownership of the easement area to the dominant tenement owner. C. Where a right or privilege over land benefits a long established trade on a dominant tenement, this has been held by the court in some cases to be sufficient to create an easement. D. A tenant who occupies land under a twenty year lease can grant an easement to a neighbouring property owner and the easement, if registered in the land title office, will run with the land even after the lease expires. (1) Only A and C are true. (2) Only A, B and D are true. (3) Only C is true. (4) Only A and D are true. |
(3) Only C is true.
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973. Joan was considering putting in an offer on a farm in Peachland, B.C. for $130,000, subject to arranging suitable financing. She approached Peachy Credit Union for pre-approval of a mortgage loan, and Peachy
hired A & A Appraisers to determine the value of the farm for mortgage purposes. A & A appraised the property at $135,000 and Peachy Credit Union approved a mortgage loan of $101,250 to Joan, who then went ahead with the purchase. Eleven months later the bank was forced to foreclose on the property and upon obtaining another appraisal, found that the market value of the property was only $70,000. It is found that A & A was negligent in its appraisal report. What remedies, if any, are available to a) Joan, and b) Peachy Credit Union? (1) Peachy Credit Union can sue A & A for breach of contract, but Joan has no case against A & A. (2) Peachy Credit Union can sue Joan for their loss under her personal covenant but cannot sue A & A Appraisers. (3) Peachy Credit Union can sue A & A for breach of contract, and Joan can sue A & A under tort law. (4) No remedies are available to either Joan or Peachy Credit Union. |
(3) Peachy Credit Union can sue A & A for breach of contract, and Joan can sue A & A under tort law.
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975. Which of the following statements is TRUE?
(1) A licensee can protect him or herself from all liability for misrepresentation by having the vendor complete and sign a disclosure statement at the time the property is listed. (2) A licensee will not be liable for the tort of fraudulent misrepresentation unless he or she has some expertise in the particular area. (3) A licensee will be vicariously liable to a purchaser for incorrect information given by the licensee to the vendor who passed the information on to the purchaser. (4) A licensee is not required to provide opinions to purchasers on areas outside his or her expertise; rather, it is the purchaser's responsibility to seek the opinion of a qualified expert. |
(4) A licensee is not required to provide opinions to purchasers on areas outside his or her expertise; rather, it is the purchaser's responsibility to seek the opinion of a qualified expert.
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976. Where a principal of an agent has acted in such a manner as to lead third parties to believe that the agent has
authority to perform certain acts on behalf of the principal and a third party deals with the agent in the bona fide belief that the agent has that authority, the agent is said to have: (1) implied authority. (2) express authority. (3) legal authority. (4) apparent authority. |
(4) apparent authority.
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977. Consider a $75,500 loan requiring a 20-year amortization period and monthly payments. Assuming that j2 = 17% and given that payments are rounded up to the next higher $10, what is the amount of the final payment?
(1) $ 625.60 (2) $ 342.33 (3) $1,042.34 (4) $ 454.40 |
(4) $ 454.40
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980. Andrew forged a mortgage and registered it against the fee simple title of Julia, without her knowledge.
Andrew then went to the Handy Dandy finance company and sold the mortgage to them. Wendy, an employee of Handy Dandy, searched the title and ascertained that Andrew was the registered mortgagee, prior to buying the mortgage from Andrew. Subsequently, Julia learned of the mortgage when Handy Dandy sent notice to her instructing her to make her payments in future to Handy Dandy. Julia told Handy Dandy that she had never granted a mortgage to anyone, and that she had no intention of paying them anything. Andrew is now living happily in Bolivia. Which of the following statements is TRUE? (1) Handy Dandy's mortgage is protected under the Land Title Act, since they dealt with the registered holder of the mortgage, and relied on the register. (2) Julia will be obliged to repay the mortgage to Handy Dandy, but she will be entitled to recover that amount from the assurance fund. (3) Handy Dandy will not be able to recover the mortgage debt from Julia, but they will be able to recover the amount of the mortgage from the assurance fund. (4) Julia will be able to have Handy Dandy's mortgage removed from her title, and Handy Dandy will have no recourse, except against Andrew. |
(4) Julia will be able to have Handy Dandy's mortgage removed from her title, and Handy Dandy will have no recourse, except against Andrew.
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981. Real estate is affected by a wider and more serious range of externalities than any other commodity. What
characteristic of real estate causes this? (1) the supply of urban land is not fixed (2) the immobility of real property (3) ownership of real property may be divided both physically and legally (4) the durability of real property |
(2) the immobility of real property
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983. Which of the following is NOT one of the three main classifications of interests in land that are less than estates?
(1) easements (2) profits-a-prendre (3) restrictive covenants (4) life tenancies |
(4) life tenancies
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985. A restrictive covenant imposes a restriction on the use of one person's land for the benefit of another piece
of land. Which of the following statements concerning restrictive covenants is FALSE? (1) The covenant must be worded in negative terms. (2) The restriction must be intended by the parties to bind the land. (3) The person who agrees to be bound is called the covenantor. (4) A restrictive covenant will not be enforceable where the character of the neighbourhood has changed so as to make enforcement useless. |
(1) The covenant must be worded in negative terms.
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988. The White Shark Loan Company has granted a mortgage loan in the amount of $450,000 to Bill Broke. This
mortgage bears interest at 17.5% per annum, compounded monthly. Monthly payments are to be made on the first day of each month of the amortization period, the first payment being made on May 1. What amount will be advanced on March 22 if the borrower is to owe the face value of $450,000 on April 1? Assume that it is NOT a leap year. (1) $447,863.14 (2) $441,303.14 (3) $452,147.06 (4) $447,936.44 |
(1) $447,863.14
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989. Jake has owned an industrial toxic waste disposal plant in Vancouver for a number of years. The area in
which the plant is located was rezoned one year ago and the applicable zoning bylaws do not permit a waste disposal land use. The residents of Vancouver are lobbying the city council to close down the plant. Which of the following statements are TRUE? A. The Planning Act establishes the circumstances under which non-conforming uses may continue. B. Jake can add to or alter the structure of the plant in future only if required by law or permitted by the board of variance. C. The plant is a legal non-conforming use of the land which may continue indefinitely. D. If Jake wants to sell the plant, most purchasers will require him to take steps to make the use a legal one by obtaining for the site a bylaw amendment called a land use contract. (1) Only B and C are true. (2) Only A, B and C are true. (3) Only A and D are true. (4) All of the above are true. |
(1) Only B and C are true.
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992. A new furnace that Sally installed in her house exploded 6 months after installation. Sally intends to bring a lawsuit against the manufacturer. The first document that Sally's lawyer will file is:
(1) the pleadings. (2) a notice of trial. (3) a writ of summons. (4) a statement of claim. |
(3) a writ of summons.
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993. Which of the following is NOT one of the four basic principles of the B.C. title registration system?
(1) indefeasibility (2) the doctrine of the void deed (3) the registration requirement (4) the abolition of notice |
(2) the doctrine of the void deed
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996. Which of the following statements about fixtures and chattels is FALSE?
(1) When a chattel becomes attached, even slightly, to real property, it will "prima facie" be considered a fixture unless circumstances show that the property was intended to remain a chattel. (2) A vendor of real property has the right to detach and remove any fixture after entering the contract of purchase and sale, if he or she so desires. (3) When an owner of a house attaches a mirror to the wall, to better use the mirror, he or she will usually be entitled to remove the mirror when the house is sold and the vendor moves out. (4) Both (2) and (3) are false. |
(2) A vendor of real property has the right to detach and remove any fixture after entering the contract of purchase and sale, if he or she so desires.
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997. Which one of the following is NOT a reason why an investor would use borrowed funds instead of an all cash offer for a real estate investment.
(1) to diversify investments and reduce overall risk. (2) to get a regular and predictable return on capital. (3) to invest the borrowed funds at a higher rate of interest than the borrowing rate. (4) lack of adequate capital to make the desired investment. |
(2) to get a regular and predictable return on capital
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999. Mimi was house-sitting for her friends Tom and Lizzie while they were on a three month photo-safari in Africa. The front porch was damaged in a freak storm that caused a tree to fall and smash the bottom two steps. Mimi didn't have the money to hire a carpenter to repair the stairs, so she attached a large sign to the
bottom of the steps reading, "DANGER KEEP OFF". Dave, an out of work handyman who could not read English, was walking from house to house in the neighbourhood looking for casual work. He entered Tom and Lizzie's property, and not understanding the sign started up the steps to the front door. Dave landed on the damaged step, and the weight of his body was more than the step could stand. He broke his leg in two places, and having no insurance, has run up $3,750 in medical bills. Dave now intends to begin a lawsuit. Which of the following statements is FALSE? (1) Under the Occupiers Liability Act, both Mimi and the absent owners qualify as "occupiers." (2) Dave will be unsuccessful in his lawsuit because he willingly accepted the risk of injury when he walked up the broken steps. (3) The duty of care owed by an occupier under the Occupiers Liability Act applies in relation to the condition of the premises, activities on the premises, or the conduct of third parties on the premises. (4) At common law, an occupier owed a higher standard of care to invitees than was owed to licensees or trespassers. |
(2) Dave will be unsuccessful in his lawsuit because he willingly accepted the risk of injury when he walked up the broken steps.
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