Ultimate UBC Real Estate Exam Prep:
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What is the purpose of the Real Estate Council of British Columbia (RECBC)?
The RECBC's primary role is to regulate real estate professionals in BC to ensure compliance with
the Real Estate Services Act and maintain ethical standards in the industry.
What is the difference between a freehold estate and a leasehold estate?
A freehold estate represents full ownership of the property, whereas a leasehold estate refers to
the right to use the property for a specified period without owning it.
What does the term "fiduciary duty" mean in real estate?
Fiduciary duty refers to the legal obligation of a real estate professional to act in the best interests
of their client, maintaining loyalty, confidentiality, and full disclosure.
What is the role of the Land Title and Survey Authority (LTSA) in BC?
The LTSA is responsible for maintaining accurate and up-to-date land title records, ensuring the
integrity of property ownership and interests in the province.
What is a "dual agency" in real estate, and is it allowed in BC?
Dual agency occurs when a real estate professional represents both the buyer and the seller in
the same transaction. In BC, dual agency is no longer permitted, and an agent must represent one party
exclusively.
What are the primary duties of a property manager?
A property manager is responsible for maintaining the property, managing tenant relations,
ensuring rent collection, and handling repairs and maintenance in a professional manner.
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,What is the definition of "adverse possession"?
Adverse possession occurs when someone gains ownership of land by continuously occupying it
without the permission of the legal owner for a statutory period, typically 10 years in BC.
What is a "real estate conveyance"?
A real estate conveyance refers to the legal process of transferring property ownership from one
party to another, typically through the execution of a deed or other formal documentation.
What does "title insurance" cover in a real estate transaction?
Title insurance protects against losses due to defects in property ownership, such as fraud, errors
in the land title register, or undisclosed liens or encumbrances.
What is the difference between a "condition" and a "warranty" in a real estate contract?
A condition is a stipulation that must be met for a contract to be valid, while a warranty is a
guarantee by one party about a specific aspect of the property or agreement.
What is the purpose of a "listing agreement" in real estate?
A listing agreement is a contract between a property owner and a real estate agent that
authorizes the agent to sell the property on behalf of the owner for a specified period.
What are "exclusive agency" and "exclusive right to sell" listings?
An exclusive agency listing allows the seller to find a buyer without paying the agent’s
commission, while an exclusive right to sell listing guarantees the agent will receive commission
regardless of who finds the buyer.
What does "market value" mean in real estate?
Market value is the price a property is expected to sell for in an open and competitive market,
based on factors such as location, condition, and comparable sales.
What is the difference between a "mortgage" and a "hypothecation"?
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, A mortgage is a legal agreement in which a property is used as collateral for a loan, while
hypothecation refers to the pledge of an asset as collateral without transferring ownership.
What is "zoning" in real estate?
Zoning refers to the local government's regulation that dictates how land in certain areas can be
used, such as for residential, commercial, or industrial purposes.
What is an "easement" in real estate?
An easement is a legal right to use someone else’s land for a specific purpose, such as for utility
lines or access roads, without owning the property.
What is the difference between "common property" and "strata property"?
Common property refers to areas owned jointly by all owners of a strata, while strata property
refers to individual units or apartments within a building that are owned privately.
What does the "Residential Tenancy Act" regulate?
The Residential Tenancy Act governs the rights and responsibilities of landlords and tenants in
British Columbia, including lease agreements, rent increases, and eviction procedures.
What is a "deed of trust" in real estate transactions?
A deed of trust is a legal document that secures a loan by transferring the legal title of the
property to a trustee until the borrower repays the loan in full.
What is the "fair market value" of a property, and why is it important?
Fair market value is the price at which a property would sell in an open and competitive market.
It is important for tax assessments, property sales, and insurance valuations.
What are "restrictive covenants" in real estate?
Restrictive covenants are clauses in property deeds that limit how a property can be used, often
to protect the value of surrounding properties or maintain a specific neighborhood standard.
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, What does "equity" mean in real estate?
Equity refers to the difference between the market value of a property and the amount owed on
the mortgage or other liens, representing the owner’s financial stake in the property.
What is the role of a "real estate appraiser"?
A real estate appraiser provides an independent, professional opinion of a property’s market
value based on factors such as location, condition, and comparable sales.
What is a "lease agreement" and what should it include?
A lease agreement is a contract between a landlord and tenant specifying the terms of rental,
including rent amount, duration, responsibilities, and any other conditions of the lease.
What is "property depreciation"?
Property depreciation refers to the decrease in value of a property over time due to wear and
tear, aging, or external factors, and can be used for tax deductions.
What is the "Homeowner Protection Act"?
The Homeowner Protection Act regulates the home warranty insurance requirements for new
homes in BC and protects consumers from defects in construction.
What are "prepaid expenses" in real estate transactions?
Prepaid expenses are costs paid in advance by the seller, such as property taxes or utility bills,
which the buyer will reimburse at closing.
What does the term "conveyancing" refer to?
Conveyancing refers to the legal process of transferring property ownership from one party to
another, typically handled by a lawyer or notary.
What is a "power of sale" clause in a mortgage?
A power of sale clause allows the lender to sell a property to recover the outstanding mortgage
balance if the borrower defaults on the loan.
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