BC Real Estate Trading Services Exam key terms

The legal obligation of an agent to act in the client's best interest ahead of the agent's own, covering loyalty, full disclosure, confidentiality, obedience to lawful instructions, and accounting for money handled.

A consensual arrangement in which one party, the agent, is authorized to act on behalf of another, the principal, and the agent's acts can legally bind the principal.

A brokerage practice in which the brokerage appoints one or more individual licensees to represent a client, so that another licensee in the same brokerage may represent the opposite party.

A permitted arrangement where a single licensee, with informed written consent of both parties, acts for both buyer and seller while providing limited services and owing impartial treatment rather than full loyalty to either.

A client has an agency relationship with the brokerage and receives fiduciary duties; a customer receives services without representation and is owed honesty, disclosure of material facts, and reasonable care.

A licensee's duty to promptly disclose to a client or customer any fact known that could affect a reasonable person's decision about the property or transaction, including latent defects and known risks.

A false or misleading statement of fact, made negligently or knowingly, that induces another party to enter a contract and may give rise to rescission, damages, or disciplinary action.

A situation where a licensee's personal, financial, or family interest could influence judgment, requiring prompt written disclosure and, where required, informed consent from affected parties.

A party's agreement given after receiving a clear explanation of the relevant facts, risks, and alternatives, and after having a reasonable chance to ask questions or seek independent advice.

The requirement that a licensee tell clients, in writing and in a timely way, about any commission, referral fee, or other benefit the licensee or brokerage will receive from the transaction.

The most complete form of private land ownership, giving the holder unrestricted rights to use, transfer, mortgage, and pass the property to heirs, subject only to government regulation.

An interest in land lasting for the lifetime of a named person, after which the property passes to a designated remainder beneficiary or reverts to the grantor.

Co-ownership with a right of survivorship, where on the death of one owner that owner's share passes automatically to the surviving joint tenants rather than through the estate.

Co-ownership in which each owner holds a distinct, transferable share with no right of survivorship, so a deceased owner's share passes according to their will or estate rules.

Any registered claim, charge, or restriction that affects title to land and may limit the owner's use or transfer of the property, such as a mortgage, easement, or covenant.

A registered right held by one party to use another person's land for a specific purpose, such as a driveway or utility line, without possessing that land.

A registered promise that limits how land may be used or built on, often benefiting neighbouring parcels, and may be enforceable by the parties who benefit from it.

The government system that records ownership and registered interests in land, providing a public record and, under the Torrens model, a degree of assurance about title.

A review of registered records to confirm the current owner, identify encumbrances and charges, and verify that the seller can convey the interest promised in the contract.

A hidden physical problem with a property that is not readily discoverable by reasonable inspection, which the seller and licensee may be obliged to disclose.

A physical problem with a property that is visible or readily discoverable on a reasonable inspection, for which the buyer is generally expected to make their own inquiry.

The principle that a buyer takes a property as it is, subject to exceptions such as seller misrepresentation, latent defects creating health or safety risks, and statutory disclosure duties.

A seller's written account of known issues affecting a property, such as water problems, permits, or disputes, which the buyer reviews before removing conditions.

A written proposal to buy property on stated terms and conditions that becomes binding once accepted and communicated, subject to any conditions that remain unsatisfied.

A response that changes the terms of an original offer, which legally rejects that offer and creates a new proposal open to acceptance or further negotiation.

The point at which the buyer waives or satisfies conditions such as financing and inspection, making the contract firm and binding on both parties.

Money paid by a buyer to show commitment, typically held in the brokerage's trust account and credited toward the purchase price or forfeited if the buyer wrongfully fails to complete.

A closing document that allocates prepaid expenses and accrued costs, such as property taxes and utilities, between buyer and seller as of the completion date.

The date set in the contract on which the purchase price is paid, title transfers, and the buyer becomes entitled to possession, unless the parties agree otherwise.

A loan secured by a charge against real property, giving the lender a right to realize on the property if the borrower fails to repay according to the agreed terms.

The total length of time scheduled to repay a mortgage in full through regular blended payments, which may be longer than the term of the mortgage contract.

The period during which the interest rate and conditions of a mortgage remain in force, after which the borrower may renew, renegotiate, or repay the balance.

The amount of a mortgage expressed as a percentage of the property's appraised value or purchase price, used by lenders to assess risk and set insurance requirements.

A qualifying standard requiring borrowers to show they could carry payments at a higher benchmark rate than the contract rate, used to assess affordability.

An analysis of recent sales, active listings, and market conditions used to estimate a property's likely selling price, prepared by a licensee rather than a certified appraiser.

An independent, reasoned estimate of a property's value at a stated date, prepared by a qualified professional using recognized approaches and supported by evidence.

The reasonably probable, legally permissible, physically possible, and financially feasible use of a property that produces the greatest value at a given time.

A valuation tool that compares a subject property with comparable sales and applies dollar or percentage adjustments for differences in features, condition, size, and location.

A local regulation that divides land into zones and sets permitted uses, density, setbacks, and building requirements, shaping what an owner may do with a property.

A use of land or a building that was lawful when it began but no longer complies with current zoning, and which typically may continue under defined conditions.

A individually owned unit within a stratified building or development, held together with a share of common property and governed by the strata corporation and its bylaws.

Money set aside by a strata corporation for major repairs and replacement of common property, funded through contributions and reported in depreciation and financial statements.

A designated account in which a brokerage holds client money, such as deposits, separately from operating funds, with records and reconciliations required by the regulator.

A required comparison of trust account records with the bank statement and individual client ledgers to confirm that money held matches money owed to clients.

The obligation to keep complete, accurate, and retrievable transaction, trust, and disclosure records for the period set by the regulator, so conduct can be verified later.

A ratio of a property's net operating income to its value or price, used by investors to compare income properties and to estimate value from expected income.

A property's effective gross income less operating expenses, before debt service and income tax, used as the key input in income-based valuation.

A property's price divided by its gross annual rent, giving a quick comparative measure of income property value without deducting operating expenses.

A tax payable on the registration of a transfer of an interest in land, calculated on the purchase price or value, with certain exemptions and additional rules for some buyers.

The expenses a buyer or seller pays at completion beyond the purchase price, such as legal fees, taxes, title insurance, and adjustments for prepaid items.