Real Estate Exam
1 Questions and
Complete Solutions
Graded A+
Denning [Date] [Course title]
,Fairness and Honesty, Conscientious and Competent Service and Services from others are all obligations
under - Answer: The Code of Ethics
The number of buyers who want to purchase properties exceeds the available properties (more demand
than supply) - Answer: Sellers Market
The number of properties available exceeds the number of buyers looking to purchase (more supply
than demand) - Answer: Buyers market
The number of listings is sufficient for the number of buyers (supply and demand are equal) - Answer:
Balanced Market
How is real estate regulated in Ontario? - Answer: the Ministry of Government and Consumer Services
is responsible for REBBA, it is the RECO's role to interpret, enforce, and suggest modifications to the
legislation
Corporation, partnership, or sole proprietorship that trades in real estate on behalf of others for
compensation or reward, or expected thereof. Agreements to represent or provide services to a seller or
a buyer relating to a trade in real estate are with the brokerage, and not the individual broker or
salesperson. Under REBBA, all brokers and sales persons are deemed employees of the brokerage. -
Answer: Brokerage
All brokerages are required to have a broker of record. The individual is a broker who is designated by
the brokerage to ensure compliance with REBBA. In the case if a brokerage that is a corporation or
partnership, a broker of record can be any broker employed by the brokerage. For a sole proprietorship,
the broker of record must be the sole proprietor. The broker of record is responsible for all activities of
the brokerage, including all brokers, salespersons, and all other employees of the brokerage. - Answer:
Broker of Record
An individual with the prescribed qualifications to be a registered sales person under REBBA and who is
employed by a brokerage to trade in real estate. To obtain registration as a salesperson, the individual
must complete program and complete additional educational requirements within the first two years of
registration. - Answer: Sales Person
anyone registered under REBBA - Answer: Registrant
,What is the relationship between the brokerage and a seller and a buyer? - Answer: Any agreement
with a seller or a buyer is made with the brokerage, and not the individual broker or salesperson.
Representing the seller, Marketing the property, prospecting, preparing the property to be shown,
qualifying buyers and showing the property, preparing and presenting an offer - Answer: Activities of a
salesperson
Typically refers solely to the tangible aspects of a property (includes lands and building(s) upon it). The
term "improvements is also used to refer to any structure or other permanent addition such as a deck,
shed or fence. - Answer: Real Estate
Property is viewed as either real or personal. Real property includes the tangible and non tangible
(rights) to the property. In many transactions, the property rights being conveyed are commonly
referred to as the bundle of rights. This is the rights to posses, use, enjoy, and sell the real estate. Rights
associated with real property are key to the value of the property. For example, an appraiser will identify
what rights are being analyzed when estimating value, especially when the rights are less than the
bundle of rights - Answer: Real Property
Movable and is referred to as consumer goods. Examples include appliances, furniture, light fixtures and
drapes. As a salesperson, personal property can become part of the negotiations between a seller and a
buyer. It is important to understand the legal obligations relating to personal property. - Answer:
Personal Property
A disposition or acquisition of or transaction in real estate by sale, purchase, agreement for purchase
and sale, exchange, option, lease, rental, or otherwise and any offer or attempt to list real estate for the
purpose of such disposition, acquisition, transaction, offer, or attempt - Answer: Trade
Conversing with a prospective seller regarding the intent to list a property for sale in the future (trading
not trading) - Answer: Trading
Hosting an open house for another salesperson (trading not trading) - Answer: Trading
Posting a weekly blog that talks about market trends and other real estate topics (trading not trading) -
Answer: Trading
, Providing advice to a long term neighbour who has been contemplating selling, in attempt to secure a
future listing - Answer: Trading
Implies an agency relationship has been established between two parties. An agency relationship places
both regulatory and fiduciary obligations on the brokerage. Fiduciary obligations generally require the
brokerage to be loyal, not disclose confidential information, and promote and protect the seller or
buyers best interests. - Answer: Representation
A brokerage can provide services to a seller or buyer rather than represent the party. Providing services
does not place the same level of obligations on the brokerage as when the representation has been
established. A brokerage must treat the party with fairness, honesty and integrity, and ensure that any
information provided is accurate. No fiduciary obligations are owed when providing services, such as
loyalty, confidentiality or promoting their best interests. - Answer: Providing Services
Represented by a brokerage and is owed loyalty, confidentiality and many other obligations both under
REBBA and the common law of agency. Client can be a seller or a buyer - Answer: Client
A person who is receiving services from a brokerage. A customer does not receive the same level of
service from the brokerage as a client. A brokerage owes fewer duties and obligations to a customer and
the customer must clearly understand that the brokerage is not representing them in a transaction. In
REBBA the customer can be a seller or a buyer - Answer: Customer
Term used when a brokerage represents a seller or a buyer as a client. An agency relationship can be
created in a number of ways such as a written or a verbal agreement. However, the Code of Ethics
requires that a registrant must reduce a verbal representation agreement with a seller or a buyer to
writing at the earliest practical opportunity and before any offer is made, have it signed on behalf of the
brokerage and submit it to the seller or the buyer for a signature - Answer: Representation Agreement
Term used when a brokerage provides services to a customer, it can be written or verbal. However, the
code of Ethics requires that a registrant must reduce verbal representation agreement with a seller or a
buyer to writing at the earliest practical opportunity, have it signed on behalf of the brokerage and
submit it to the seller or the buyer for signature.
Distinct from a representation agreement with a client and can be non-exclusive - Answer: Customer
Service Agreement
