STRATA PROPERTY MANAGEMENT EXAM | 266
QUESTIONS AND ANSWERS 100% CORRECT |
LATEST 2025
Which of the following statements is TRUE regarding service agreements?
(1) Any strata council or executive member who has an interest in a strata service
agreement must promptly disclose the interest in order to participate and vote in
relation to the agreement.
(2) It is the strata council, not the strata corporation, that has the legal capacity to
enter into contracts such as service agreements.
(3) Unlike a strata council or an executive on behalf of a separate section, an
owner developer may not enter into a service agreement.
(4) Before a strata corporation can enter into a service agreement, the
expenditure must first be authorized in the budget or be approved by a resolution.
- ANSWER Answer: 4
Option (4) is true and is the correct answer. Option (1) is false. Any strata council
or executive member who has a direct or indirect interest in a strata management
contract must promptly disclose the interest and cannot participate or vote in
relation to the contract. Option (2) is false; it is the strata corporation, not the
strata council, that has the capacity to enter into contracts. Option (3) is false;
owner developers may enter into service agreements provided that certain
requirements are met.
Which of the following is NOT an example of a breach of contract?
(1) Don contracted with Toni to buy his car. The night before Don was supposed to
pay the price and take the car, the vehicle was struck by lightning in Toni's
driveway and destroyed.
,(2) After Babs contracted with Quin in May to rent his motorhome for one week in
July, Quin telephoned Babs and told her that he was going to be using the home
himself that week, and that she would not be able to rent it.
(3) Fred contracted with Jordan to sell Jordan his collection of hockey cards. One
day later, Fred sold them to Andrew, who paid him $15 more than the amount
Jordan had agreed to pay.
(4) Adrian contracted to paint Woodie's house starting on September 1 for a price
of $500. On September 1, Adrian failed to appear and did not reply to any of the
messages that Woodie left on Adrian's answering machine. - ANSWER Answer:
1
Option (1) is correct because it is an example of frustration, rather than a breach
of contract. Option (2) is incorrect because it is an example of a breach of
contract. After the contract was agreed to, Quin did not fulfil his promise under
the contract. Option (3) is incorrect because after the contract was agreed to, Fred
did not fulfil his promise under the contract. Option (4) is incorrect because after
the contract was agreed to, Adrian did not fulfil his promise under the contract.
Coralee asked Tim to sell her car and her mountain bike for her while she was
away on holiday. She gave Tim the keys to the car and told him to accept any price
in excess of $1,700 for the car, and to get at least $300 for the bike. Which of the
following is an example of Tim exercising implied authority?
(1) Tim sold the car to Cherise for $1,750.
(2) Before Cherise was willing to purchase the car, she insisted that she test drive
the car and have it checked by the automobile association, which Tim allowed her
to do.
(3) When Cherise was viewing the car, she noticed a small roof rack sitting in
Coralee's garage. She said that she would like to buy the rack to carry her camping
gear on Coralee's car. Tim said that he would include the rack in the sale for an
additional $75, to which Cherise agreed. When Coralee returned, she told Tim
that she was pleased that he had sold the rack, since she had no more use for it.
(4 - ANSWER Answer: 2
,Option (2) is correct because the act of test driving the car and having it inspected
is necessary in order to enable Tim to carry out the express authority and is
incidental to that authority. It is therefore an example of implied authority. Option
(1) is incorrect because it is an example of express authority. Option (3) and (4) are
incorrect because they are examples of acts that Tim does not have actual or
apparent authority to do. Therefore, authority cannot be implied for these acts.
Which one of the following terms does NOT describe a construction type used in
multi-family housing?
(1) Wood stud frame
(2) Concrete framing
(3) Vaultedceiling
(4) Steel studs and concrete topping - ANSWER Answer: 3
Option (3) is correct because vaulted ceiling is not a construction type used in
multi-family housing. Options (1), (2), and (4) are incorrect.
Which of the following statements regarding the holding of a special general
meeting (SGM) is TRUE?
(1) The strata council cannot call an SGM.
(2) Owners who hold at least 10% of the votes in a strata corporation may
requisition an SGM.
(3) Notice of an SGM may be given verbally.
(4) Even if a strata corporation fails to properly give notice of an SGM to a person
entitled to notice, a resolution passed at that meeting may still have full force and
effect. - ANSWER Answer: 4
Option (4) is true and is the correct answer; section 47 of the Strata Property Act
provides that as long as the strata corporation has made a reasonable attempt to
give notice of the meeting to the person entitled to notice, the failure to give
, proper notice of the AGM or SGM does not invalidate a vote taken at the meeting.
Option (1) is false; in addition to annual general meetings (AGMs), the strata
council is permitted to call special general meetings (SGMs). Option (2) is false;
owners must hold at least 20% of the strata corporation's votes (not 10%) in order
to requisition an SGM. Option (3) is false; the Strata Property Act requires that
notice of the AGM and any SGM be provided in writing.
Which of the following statements about the principle of indefeasibility in British
Columbia is TRUE?
(1) Legal mortgages are guaranteed by the principle of indefeasibility, but
equitable mortgages are not.
(2) The principle of indefeasibility provides that, where a buyer deals with a
registered charge holder, the buyer will acquire a good title.
(3) There are a number of exceptions to the principle of indefeasibility.
(4) The principle of indefeasibility is consistent with the common law doctrine of
the void deed. - ANSWER Answer: 3
Option (3) is correct because section 23 of the Land Title Act contains 10
exceptions to the principle of indefeasibility. Option (1) is incorrect because
neither legal nor equitable charges are guaranteed by the principle of
indefeasibility. Option (2) is incorrect because the principle of indefeasibility only
provides that a good-faith purchaser can rely completely on the ownership shown
on the certificate of title, and can acquire good title upon registration, even
though there are defects in the vendor's registered title. Option (4) is incorrect
because the principle of indefeasibility overrules the common law doctrine of the
void deed.
Which of the following statements is TRUE regarding BC's Personal Information
Protection Act (PIPA)?
QUESTIONS AND ANSWERS 100% CORRECT |
LATEST 2025
Which of the following statements is TRUE regarding service agreements?
(1) Any strata council or executive member who has an interest in a strata service
agreement must promptly disclose the interest in order to participate and vote in
relation to the agreement.
(2) It is the strata council, not the strata corporation, that has the legal capacity to
enter into contracts such as service agreements.
(3) Unlike a strata council or an executive on behalf of a separate section, an
owner developer may not enter into a service agreement.
(4) Before a strata corporation can enter into a service agreement, the
expenditure must first be authorized in the budget or be approved by a resolution.
- ANSWER Answer: 4
Option (4) is true and is the correct answer. Option (1) is false. Any strata council
or executive member who has a direct or indirect interest in a strata management
contract must promptly disclose the interest and cannot participate or vote in
relation to the contract. Option (2) is false; it is the strata corporation, not the
strata council, that has the capacity to enter into contracts. Option (3) is false;
owner developers may enter into service agreements provided that certain
requirements are met.
Which of the following is NOT an example of a breach of contract?
(1) Don contracted with Toni to buy his car. The night before Don was supposed to
pay the price and take the car, the vehicle was struck by lightning in Toni's
driveway and destroyed.
,(2) After Babs contracted with Quin in May to rent his motorhome for one week in
July, Quin telephoned Babs and told her that he was going to be using the home
himself that week, and that she would not be able to rent it.
(3) Fred contracted with Jordan to sell Jordan his collection of hockey cards. One
day later, Fred sold them to Andrew, who paid him $15 more than the amount
Jordan had agreed to pay.
(4) Adrian contracted to paint Woodie's house starting on September 1 for a price
of $500. On September 1, Adrian failed to appear and did not reply to any of the
messages that Woodie left on Adrian's answering machine. - ANSWER Answer:
1
Option (1) is correct because it is an example of frustration, rather than a breach
of contract. Option (2) is incorrect because it is an example of a breach of
contract. After the contract was agreed to, Quin did not fulfil his promise under
the contract. Option (3) is incorrect because after the contract was agreed to, Fred
did not fulfil his promise under the contract. Option (4) is incorrect because after
the contract was agreed to, Adrian did not fulfil his promise under the contract.
Coralee asked Tim to sell her car and her mountain bike for her while she was
away on holiday. She gave Tim the keys to the car and told him to accept any price
in excess of $1,700 for the car, and to get at least $300 for the bike. Which of the
following is an example of Tim exercising implied authority?
(1) Tim sold the car to Cherise for $1,750.
(2) Before Cherise was willing to purchase the car, she insisted that she test drive
the car and have it checked by the automobile association, which Tim allowed her
to do.
(3) When Cherise was viewing the car, she noticed a small roof rack sitting in
Coralee's garage. She said that she would like to buy the rack to carry her camping
gear on Coralee's car. Tim said that he would include the rack in the sale for an
additional $75, to which Cherise agreed. When Coralee returned, she told Tim
that she was pleased that he had sold the rack, since she had no more use for it.
(4 - ANSWER Answer: 2
,Option (2) is correct because the act of test driving the car and having it inspected
is necessary in order to enable Tim to carry out the express authority and is
incidental to that authority. It is therefore an example of implied authority. Option
(1) is incorrect because it is an example of express authority. Option (3) and (4) are
incorrect because they are examples of acts that Tim does not have actual or
apparent authority to do. Therefore, authority cannot be implied for these acts.
Which one of the following terms does NOT describe a construction type used in
multi-family housing?
(1) Wood stud frame
(2) Concrete framing
(3) Vaultedceiling
(4) Steel studs and concrete topping - ANSWER Answer: 3
Option (3) is correct because vaulted ceiling is not a construction type used in
multi-family housing. Options (1), (2), and (4) are incorrect.
Which of the following statements regarding the holding of a special general
meeting (SGM) is TRUE?
(1) The strata council cannot call an SGM.
(2) Owners who hold at least 10% of the votes in a strata corporation may
requisition an SGM.
(3) Notice of an SGM may be given verbally.
(4) Even if a strata corporation fails to properly give notice of an SGM to a person
entitled to notice, a resolution passed at that meeting may still have full force and
effect. - ANSWER Answer: 4
Option (4) is true and is the correct answer; section 47 of the Strata Property Act
provides that as long as the strata corporation has made a reasonable attempt to
give notice of the meeting to the person entitled to notice, the failure to give
, proper notice of the AGM or SGM does not invalidate a vote taken at the meeting.
Option (1) is false; in addition to annual general meetings (AGMs), the strata
council is permitted to call special general meetings (SGMs). Option (2) is false;
owners must hold at least 20% of the strata corporation's votes (not 10%) in order
to requisition an SGM. Option (3) is false; the Strata Property Act requires that
notice of the AGM and any SGM be provided in writing.
Which of the following statements about the principle of indefeasibility in British
Columbia is TRUE?
(1) Legal mortgages are guaranteed by the principle of indefeasibility, but
equitable mortgages are not.
(2) The principle of indefeasibility provides that, where a buyer deals with a
registered charge holder, the buyer will acquire a good title.
(3) There are a number of exceptions to the principle of indefeasibility.
(4) The principle of indefeasibility is consistent with the common law doctrine of
the void deed. - ANSWER Answer: 3
Option (3) is correct because section 23 of the Land Title Act contains 10
exceptions to the principle of indefeasibility. Option (1) is incorrect because
neither legal nor equitable charges are guaranteed by the principle of
indefeasibility. Option (2) is incorrect because the principle of indefeasibility only
provides that a good-faith purchaser can rely completely on the ownership shown
on the certificate of title, and can acquire good title upon registration, even
though there are defects in the vendor's registered title. Option (4) is incorrect
because the principle of indefeasibility overrules the common law doctrine of the
void deed.
Which of the following statements is TRUE regarding BC's Personal Information
Protection Act (PIPA)?
