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Real Estate and Business Brokers Act Flashcards

6 cards from real OREA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Real Estate and Business Brokers Act flashcards as text

  1. Under the Real Estate and Business Brokers Act, 2002 (REBBA), which regulatory body is responsible for administering and enforcing the Act in Ontario?

    Answer: The Real Estate Council of Ontario (RECO)

    RECO (Real Estate Council of Ontario) is the delegated administrative authority responsible for administering and enforcing REBBA 2002, including licensing, education, and discipline of registrants.

  2. What is the minimum requirement for a person to trade in real estate in Ontario under REBBA 2002?

    Answer: They must be registered with RECO

    Under REBBA 2002, any person who trades in real estate must be registered with RECO. Trading without registration is an offence under the Act.

  3. Which of the following activities constitutes 'trading' in real estate under REBBA 2002?

    Answer: Negotiating the purchase of a property on behalf of another person for compensation

    Trading in real estate under REBBA includes negotiating, offering, or soliciting for the purpose of a real estate transaction on behalf of another person, especially when done for compensation or the expectation of compensation.

  4. Under REBBA 2002, what is the maximum fine for an individual convicted of trading in real estate without registration?

    Answer: $50,000

    An individual convicted of trading without registration under REBBA 2002 can face a fine of up to $50,000. For corporations, the maximum fine is $250,000.

  5. What type of insurance must all registered brokerages maintain under REBBA 2002?

    Answer: Errors and omissions insurance

    REBBA 2002 requires all registered brokerages to maintain errors and omissions (E&O) insurance to protect consumers against financial losses caused by professional negligence or mistakes.

  6. Under REBBA 2002, which of the following is a registrant's obligation regarding disclosure of interest?

    Answer: A registrant must disclose any direct or indirect interest in a transaction to all parties

    Under REBBA 2002, all registrants must disclose any direct or indirect interest they have in a real estate transaction to all parties involved. Failure to disclose is a breach of the Code of Ethics.