OREA Real Estate and Business Brokers Act 4 — Questions and Answers
Question 1: Under REBBA 2002, what is the registrant's obligation when they discover an error in a transaction document?
- Ignore it if it is minor
- Correct it immediately and notify all affected parties (Correct answer)
- Wait until closing to address it
- Only report it if the client notices
Correct answer: Correct it immediately and notify all affected parties
Registrants have a duty to ensure accuracy in all transaction documents. When an error is discovered, it must be corrected promptly and all affected parties must be notified.
Question 2: How does REBBA 2002 define a 'brokerage'?
- Any individual who sells real estate
- A corporation, partnership, or sole proprietorship that is registered to trade in real estate (Correct answer)
- Only a corporation with at least 10 salespersons
- A government agency that regulates real estate
Correct answer: A corporation, partnership, or sole proprietorship that is registered to trade in real estate
Under REBBA 2002, a brokerage is defined as a corporation, partnership, or sole proprietorship registered under the Act to trade in real estate. All salespersons and brokers must be employed by a registered brokerage.
Question 3: What continuing education requirements exist under REBBA 2002?
- There are no continuing education requirements
- Registrants must complete mandatory continuing education courses during each registration cycle (Correct answer)
- Only Brokers of Record need continuing education
- Continuing education is required only in the first year of registration
Correct answer: Registrants must complete mandatory continuing education courses during each registration cycle
REBBA 2002 requires all registrants to complete mandatory continuing education (MCE) courses during each two-year registration cycle to maintain their registration.
Question 4: Under REBBA 2002, what is a registrant's obligation regarding competing offers?
- The registrant may choose which offers to present to their client
- A registrant must convey all offers to their client as quickly as possible unless otherwise directed in writing (Correct answer)
- Only the highest offer needs to be presented
- Competing offers should be held until the first offer expires
Correct answer: A registrant must convey all offers to their client as quickly as possible unless otherwise directed in writing
Under REBBA 2002, registrants must present all competing offers to their client as soon as possible. A client may provide written direction to not present certain types of offers, but the default obligation is to present all.
Question 5: What restrictions does REBBA 2002 place on a registrant who is buying or selling their own property?
- No restrictions apply when dealing with personal property
- The registrant must disclose their registration status to all parties in writing before any offer is made (Correct answer)
- The registrant can act without disclosure if using a different brokerage
- Only verbal disclosure is required
Correct answer: The registrant must disclose their registration status to all parties in writing before any offer is made
When a registrant is personally buying or selling property, they must disclose in writing to all parties that they are registered under REBBA 2002, even if they are not acting in a professional capacity.
Question 6: Under REBBA 2002, what authority does the Registrar have regarding investigations?
- The Registrar can only investigate after receiving a formal complaint
- The Registrar can appoint investigators to conduct inspections and investigations at any time (Correct answer)
- The Registrar must obtain a court order before any investigation
- Investigations can only be conducted by external auditors
Correct answer: The Registrar can appoint investigators to conduct inspections and investigations at any time
The Registrar has broad authority under REBBA 2002 to appoint investigators who can conduct inspections and investigations of registrants, including examining books, records, and documents, without requiring a formal complaint.
OREA Real Estate and Business Brokers Act 4
Under REBBA 2002, what is the registrant's obligation when they discover an error in a transaction document?