Assignment-8

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School

New York Institute of Technology, Westbury *

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3211

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Business

Date

Jan 9, 2024

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pdf

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Uploaded by DrTitanium9231

UBC ) | SAUDER SCHOOL OF BUSINESS Real Estate Division

Go to My Courses Page Student No: 4304704 Course: Real Estate Trading Services Licensing Course 2023 Assignment No: 8 You have submitted this assignment on 2023-08-22. : Green border - Questions answered correctly. : Red border - Questions answered incorrectly. If you would like to print your assignment questions for future reference, you can do so by clicking the button below: | Print this assignment Question 1 Which of the following regarding the Property Disclosure Statement (PDS) is TRUE? Once the PDS is filled out, the licensee is no longer liable for misrepresentations regarding the physical aspects of the property. The PDS will not form part of the contract of purchase and sale unless so agreed by the parties. A residential seller who does not fill out a PDS can still list with the multiple listing service, even if the board has adopted the use of the PDS. It is acceptable for a licensee to accept everything which a vendor includes on the PDS at face value. Correct Answer: 2 The PDS is intended to shift some of the risk for a misrepresentation to the vendor. However, licencees are still under an obligation to independently verify the information included. Where a board has adopted the use of a PDS, it must be included in a residential listing or the listing will be rejected from the MLS7. The PDS will not form part of the contract of purchase and sale unless this is specifically agreed to by the parties. Question 2 Which of the following regarding the termination of an agent's authority is FALSE? Because the relationship between principal and agent depends upon their mutual consent, either party can terminate the authority at will. If the principal finds a buyer, and sells the home on their own, even though the principal has a listing contract with a licensee, the licensee's authority is terminated. The authority of an agent can only be revoked by written notice. If the principal sells their property without the help of the agent, the principal may still be liable to the agent for commission even though the agent's authority was terminated upon the sale of the property. Correct Answer: 3 Either the principal or the agent can terminate the agent's authority. The authority of an agent can be revoked by the principal either expressly or by conduct. An act inconsistent with the agent's authority will represent a revocation of authority. Frustration of the contract will also operate to remove the agent's authority.

Question 3 Vikram is a licensee who obtained a lucrative deal to sell all of the units in a 75-unit townhouse development on behalf of the developer, Ego Developments. The units ranged in price from $150,000 to $305,000. Vikram ordered a huge sign which he erected on the front of the property. The sign displayed a large photograph of a unit, showing a large kitchen-family room. The sign read: Fabulous townhomes! Two bedrooms and den. Marble foyers, jacuzzi baths and more! These units represent superb value. Priced from $150,000. Contact Vikram at Ego Developments! The unit that was displayed on the picture had a price tag of $289,000, and the $150,000 units had only one bedroom and no den. None of the units below $200,000 had marble foyers or jacuzzis. Of the 75 units in the development, only 15 were priced below $200,000. Vikram is being prosecuted under section 52 of the Competition Act. Which of the following statements is TRUE? As long as the sign used by Vikram is literally true, there will be no breach of section 52. An oral representation that a licensee makes to a prospective purchaser does not fall within the scope of section 52; however, written communication, such as Vikram's sign, is subject to section 52. To convict Vikram under section 52, the Crown must prove its case on the balance of probabilities. For a representation to offend section 52, the representation must be false or misleading in a material respect. Correct Answer: 4 The Crown must prove a criminal offence, such as section 52, beyond a reasonable doubt. When examining representations under section 52, a court will consider both the literal meaning and the general impression conveyed by the advertisement. Section 52 covers a broad category of representations made to the public, including oral, written and electronic advertising. Question 4 Jay and Caro are the only two sales licensees in a city. In order to maximize the profitability of their businesses, the two licensees decide that they will each control certain parts of the city: Jay will only represent clients west of the railroad tracks, and Caro will only represent clients east of the railroad tracks. They also agree that they will both charge a flat $1,000 commission on every property listed with their respective firms. Jay and Caro do not tell anyone about their agreement, and they do not put the agreement in writing. Which of the following statements is TRUE? Jay and Caro cannot be convicted under section 45 of the Competition Act unless their agreement is in writing. Agreeing to only represent clients on a particular side of the city is not an offence under the Competition Act. However, agreeing to charge a $1,000 flat commission is an offence under the Competition Act. To convict Jay and Caro under section 45, the Crown must prove that the agreement adversely affected competition in the city. None of the above Correct Answer: 4 An implied or unrecorded agreement is sufficient to found a conviction under section 45 of the Competition Act. Under section 45, allocating territories and fixing commission rates are both offences. For a conviction under section 45, the Crown has no obligation to prove that the agreement adversely affected competition in the market.

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