In British Columbia, a buyer's licensee discovers that their client's offer was accepted, but the seller's licensee failed to disclose a material latent defect that both the seller and the seller's licensee knew about. What is the most appropriate immediate action?
Correct Answer
C) Document the issue and advise the client of their legal options including potential rescission
The buyer's licensee must act in the client's best interests, so the first step is to document the issue and tell the client about it and about the legal options, which may include rescission or damages, and recommend independent legal advice. The seller's licensee's failure may also breach Real Estate Services Rules s. 59(2) and can be reported to BCFSA, but that does not replace advising the client.
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In BC, if a buyer representation agreement is terminated early due to the brokerage's breach, what happens to any commission earned on a property the buyer subsequently purchases?
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A BC licensee realizes that acting for both a buyer client and a seller client in the same trade would be dual agency. With both clients' written agreement in the approved form, the licensee continues for the seller only. The licensee earlier learned that the buyer has a past bankruptcy. What must the licensee do?