REAL ESTATE TRADING SERVICES Licensing Course Practice Questions test bank with solution manual 2022
1. Latent defects are defects that are unknown to the buyer and that are:
(1) immediately visible to the eye of the average person.
(2) required to be disclosed by the buyer to the seller.
(3) the responsibility of the licensee to discover.
(4) not discoverable upon a reasonable inspection of the property.
2. Real property is said to be more subject to the effects of externalities than most assets. This vulnerability is
principally due to:
(1) the relatively high cost of real property.
(2) the fact that land is fixed in supply.
(3) the immobility of land.
(4) the lack of effective government regulations.
3. Which of the following is NOT a “real estate service” under the Real Estate Services Act ?
(1) Constructing a commercial office building in Prince George for an owner who lives in British
Columbia
(2) Collecting rents from tenants in a residential building in Burnaby for an owner who lives in
Singapore
(3) Selling a Penticton property for an owner who lives in Victoria
(4) Assisting in the sale of a condominium unit located in Vancouver but owned by a person who lives
in Calgary
4. Which of the following statements is TRUE regarding sole proprietorships, partnerships, and corporations?
(1) Only sole proprietors need to report business income on their personal income tax returns.
(2) Only partners of a partnership need to report business income on their personal tax returns.
(3) Sole proprietorships, partnerships, and corporations are identical in terms of taxation of owner’s
income.
(4) A corporation is a separate legal entity with its own income tax status.
5. Consider a situation in which the principal is the seller and the agent is the listing agent. Which of the
following events will terminate the real estate agency relationship?
(1) The principal’s refusal to accept an offer to purchase presented by the agent where the offer exactly
complies with the requirements in the listing contract
(2) An act of the principal that is inconsistent with the continuation of the agent’s authority
(3) An offer by the agent to personally purchase the principal’s property
(4) The revocation of an offer to purchase by the offeror before the principal can accept it
Detailed Practice Questions Solutions are Online
Detailed solutions for all questions can be found on your Course Resources webpage under “Tutorial
Assistance”. Access to the Course Resources webpage is only available to course students.
6 Real Estate Trading Services Licensing Course
© Copyright 2022 by the UBC Real Estate Division Educational Testing Service
6. A $170,000 mortgage loan, written at a nominal rate of 7% per annum, compounded annually, has a 2-
year contractual term. Payments are made monthly and are based on a 20-year amortization period.
Payments are rounded to the next higher dollar. What is the size of the required payments?
(1) $1,307
(2) $1,319
(3) $1,275
(4) $1,297
7. Before adopting, amending, or repealing a zoning bylaw, a municipal council as a matter of policy will:
(1) obtain the approval of the federal government.
(2) obtain the approval of the provincial government.
(3) give three months’ written notice to the public.
(4) hold a public hearing.
8. Which of the following might be the subject of a real property appraisal?
(1) Air space rights
(2) A life insurance policy
(3) A diamond
(4) A home owner’s insurance policy
9. When commencing a lawsuit in small claims court, the plaintiff may originate the action in which of the
following jurisdictions?
(1) Where either the plaintiff resides or the defendant resides
(2) Where the plaintiff resides only
(3) Where either the cause of action arose or the defendant resides
(4) Where either the cause of action arose or the plaintiff resides
10. The principle that the person named on a particular certificate of title is entitled to a fee simple interest in
that property, free from any condition or encumbrance that is not shown on title, is known as the:
(1) assurance principle.
(2) entitlement principle.
(3) fee simple principle.
(4) indefeasibility principle.
