OREA Real Estate and Business Brokers Act 2 — Questions and Answers
Question 1: Under the REBBA 2002 Code of Ethics, what is a registrant's primary obligation?
- To maximize their commission
- To protect and promote the interests of their client while treating all parties honestly (Correct answer)
- To complete transactions as quickly as possible
- To represent both the buyer and seller equally in every transaction
Correct answer: To protect and promote the interests of their client while treating all parties honestly
The Code of Ethics under REBBA 2002 requires registrants to protect and promote the best interests of their client while treating all parties to a transaction with fairness, honesty, and integrity.
Question 2: What is the role of the 'Broker of Record' under REBBA 2002?
- To personally close all transactions for the brokerage
- To ensure the brokerage complies with REBBA 2002 and supervise all registrants (Correct answer)
- To handle only commercial real estate deals
- To manage the brokerage's marketing campaigns
Correct answer: To ensure the brokerage complies with REBBA 2002 and supervise all registrants
The Broker of Record is responsible for ensuring the brokerage and all its registrants comply with REBBA 2002. This includes supervising salespersons and brokers, maintaining records, and handling trust accounts.
Question 3: Under REBBA 2002, how long must a brokerage retain transaction records?
- 3 years
- 5 years
- 6 years (Correct answer)
- 10 years
Correct answer: 6 years
Under REBBA 2002, brokerages must retain all records related to trades in real estate for a minimum of 6 years from the date the documents were created.
Question 4: What happens to deposits received by a brokerage under REBBA 2002?
- They must be deposited into the brokerage's general operating account
- They must be placed into a trust account within 5 business days (Correct answer)
- They can be held in any account at the broker's discretion
- They must be forwarded directly to the seller immediately
Correct answer: They must be placed into a trust account within 5 business days
REBBA 2002 requires that all deposits received in connection with a trade must be deposited into the brokerage's real estate trust account within 5 business days of receipt.
Question 5: Which of the following would be grounds for RECO to refuse, suspend, or revoke a registration under REBBA 2002?
- The registrant moved to a new address
- The registrant changed brokerages
- The registrant made a false statement on their registration application (Correct answer)
- The registrant took a vacation longer than 30 days
Correct answer: The registrant made a false statement on their registration application
Making a false statement or misrepresentation on a registration application is grounds for RECO to refuse, suspend, or revoke registration under REBBA 2002.
Question 6: Under REBBA 2002, what is 'dual agency' now commonly referred to as in Ontario?
- Co-brokerage
- Multiple representation (Correct answer)
- Joint agency
- Shared brokerage
Correct answer: Multiple representation
In Ontario under REBBA 2002, when a brokerage represents both the buyer and seller in the same transaction, it is referred to as 'multiple representation.' Both parties must provide informed written consent.
OREA Real Estate and Business Brokers Act 2
Under the REBBA 2002 Code of Ethics, what is a registrant's primary obligation?