A licensee discovers that their client intends to use a property for an illegal purpose. Under RESA and BCFSA professional standards, what should the licensee do?
Correct Answer
A) Immediately terminate the service agreement and report the matter to the managing broker
Under RESA, a licensee must not assist in any transaction that they know or should know involves illegal activity. The licensee should terminate the service agreement and report the situation to their managing broker, who may need to take further steps including notifying BCFSA.
Why This Is the Correct Answer
Option A is correct because under RESA and BCFSA professional standards, a licensee must not assist in any transaction they know or should know involves illegal activity. Upon discovering the client's illegal intent, the licensee must immediately terminate the service agreement and report the matter to their managing broker, who may need to take additional steps such as notifying BCFSA or other authorities.
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A client instructs their Alberta real estate associate to present an offer that contains a deliberately misleading term designed to deceive the other party. Under the RECA Code of Conduct, what should the associate do?
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