OREA Real Estate and Business Brokers Act 1 — Questions and Answers
Question 1: Under the Real Estate and Business Brokers Act, 2002 (REBBA), which regulatory body is responsible for administering and enforcing the Act in Ontario?
- The Real Estate Council of Ontario (RECO) (Correct answer)
- The Ontario Real Estate Association (OREA)
- The Ministry of Government and Consumer Services
- The Canadian Real Estate Association (CREA)
Correct 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.
Question 2: What is the minimum requirement for a person to trade in real estate in Ontario under REBBA 2002?
- They must be registered with RECO (Correct answer)
- They must hold a university degree in real estate
- They must have at least 5 years of experience
- They must be a Canadian citizen
Correct 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.
Question 3: Which of the following activities constitutes 'trading' in real estate under REBBA 2002?
- Personally renovating your own home
- Negotiating the purchase of a property on behalf of another person for compensation (Correct answer)
- Visiting open houses as a prospective buyer
- Reading real estate market reports
Correct 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.
Question 4: Under REBBA 2002, what is the maximum fine for an individual convicted of trading in real estate without registration?
- $10,000
- $25,000
- $50,000 (Correct answer)
- $100,000
Correct 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.
Question 5: What type of insurance must all registered brokerages maintain under REBBA 2002?
- Life insurance for all salespersons
- Errors and omissions insurance (Correct answer)
- Property damage insurance
- General liability insurance only
Correct 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.
Question 6: Under REBBA 2002, which of the following is a registrant's obligation regarding disclosure of interest?
- Disclosure is only required for commercial transactions
- A registrant must disclose any direct or indirect interest in a transaction to all parties (Correct answer)
- Disclosure is voluntary but recommended
- Only brokers of record need to disclose interests
Correct 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.
OREA Real Estate and Business Brokers Act 1
Under the Real Estate and Business Brokers Act, 2002 (REBBA), which regulatory body is responsible for administering and enforcing the Act in Ontario?