Module 1

Question 1

REBBA

Answer 1

Real Estate and Business Brokers Act
Administered on behalf of provincial government by RECO
Overseen by the Ministry of Government and Consumer Services

Question 2

Code of Ethics (3 principles)

Answer 2

Regulation under REBBA
Professional and ethical standards
1. Fairness and Honesty 
2. Conscientious and competent service 
3. Services from others

Question 3

RECO

Answer 3

Real Estate Council of Ontario
Ensures regulation (registration) and maintains the public’s trust
Interprets, enforces, and suggests modifications to legislation (REBBA)

Question 4

Registrant

Answer 4

Term under REBBA

Salesperson, broker, or brokerage

Question 5

Brokerage

Answer 5

Corporation, partnership, or sole proprietorship

Under REBBA, agreements to trade in real estate are with the brokerage

Question 6

Broker

Answer 6

Need to be broker to manage or be broker of record

Question 7

Salesperson

Answer 7

Complete Real Estate Salesperson program

Finish additional education requirements within 2 years to maintain registration

Question 8

Broker of Record

Answer 8

All brokerages need one
Must be a broker, not a salesperson
If sole proprietorship, that person is the broker of record
Responsible for all activities of employees in brokerage
Don’t need multiple broker of records if there are numerous office branches (just one for enture brokerage)

Question 9

Registration process

Answer 9

1. Complete registration education requirements, then gain employment with a brokerage
2. Register with RECO
3. Purchase insurance through RECO

Question 10

Registration Process - Education requirements in depth

Answer 10

There are 5 course

1. Real Estate Essentials
2. Residential Real Estate Transactions
3. Additional Residential Real Estate Transactions
4. Commercial Real Estate Transactions
5. Getting Started

Question 11

Registration Process - Register with RECO

Answer 11

12 month window after you finish and pass pre-registration exams
Submits forms with brokerage who is employing you
Pay application review fee, 2-year registration fee, pro-rated insurance
Submit criminal record check dated within last 6 months
Work permit (if needed)

Question 12

Registration Process - Purchase insurance through RECO

Answer 12

Consumer deposit protection
Errors and omissions protection
Commission protection

Annual insurance premiums due mid-August, policy is yearly and starts Sept 1.

Question 13

Post-Registration Education Requirements

Answer 13

Window: 24 months after registering as a salesperson
Must complete in order to become a permanent salesperson
Must renew registration every 2 years (warning given 60 days ahead of expiry)

Question 14

Sellers Market

Answer 14

Supply < Demand
Properties sell quick
May be bidding wars
Buyers have less opportunity to view property and need to make quick decisions
Buyers may need to complete some due diligence before putting in offer as sellers will prefer no conditions

Activity will happen quickly (listing agent)
Get alerts and act immediately (buyer agent)

Question 15

Buyers Market

Answer 15

Supply > Demand
Longer listing periods
Lower prices
Buyers might view property several times (buyer agent)
Buyers will put in more conditions

Showing might not happen for several days (listing agent)

Question 16

Balanced Market

Answer 16

Supply = Demand
Terms and conditions readily accepted by both parties
Reasonable time for listings
Sale prices are stable

Question 17

Listing Agreement

Answer 17

Any agreement between seller and brokerage to sell the seller’s property
REBBA uses the term ‘representation agreement)

Question 18

Prospecting

Answer 18

Searching for qualified buyers

Question 19

Remuneration

Answer 19

Compensation based on the sale of a property.

Paid on completion of transaction.

Question 20

Listing Agent

Answer 20

Represents the seller

Also known as the listing agent

Question 21

Selling Agent

Answer 21

Represents the buyer

Also known as the buyers agent