HUMBER REAL ESTATE 2026/2027 TEST PAPER QUESTIONS
AND ANSWERS RATED A+
✔✔What is the principals duty to indemnify? - ✔✔the principal will reimburse for
amounts paid and to compensate for loss/damages due to an unforeseen event, when
the agent is performing lawful acts on behalf of the principal.
✔✔what does the duty of care entail for customers? - ✔✔limited duty which involves
providing accurate information, performing functions (if any), and limited disclosure and
privacy obligations. do not provide advice.
✔✔what are the agency's obligations? - ✔✔general, fiduciary, and regulatory
✔✔What are the 8 general obligations owed to clients? - ✔✔1. perform mandate (fulfill
duties set out in the representation agreement)
2. obey instructions (lawful)
3. Act in Person (perform duties personally, unless instructed otherwise)
4. negotiate favourable terms (advance the clients interests)
5. maintain confidentiality (protect the clients information)
6. disclose information (fully inform client of all relevant details and conflict of interests)
*7. exercise skill and care (answer questions conscientiously and perform obligations
completely)
*8. ensure honesty (provide accurate information)
✔✔what are the fiduciary obligations owed to clients? - ✔✔1. Not misuse confidential
information
2. not make secret profit
3. disclose conflicts
4. avoid conflicts of interests
5. maintain utmost loyalty
✔✔what are the regulatory obligations owed to clients? - ✔✔1. Disclosure
(representative capacity)
2. agency relationships/forms
3. to deliver agreements, offers, statements
4. to account
5. remuneration provisions
6. not to induce, breach, or make certain promises
* owed to customers as well
✔✔What are the general obligations and duty of care owed to customers? - ✔✔exercise
care and skill, ensure honesty, provide information, perform functions, limited
disclosure/privacy obligations.
,✔✔What are the two steps for multiple representation disclosure? - ✔✔Step 1:
disclosure before agreement to be represented
Step 2: disclosure before offer is presented
✔✔What are the 3 phases of due diligence when representing a seller client? - ✔✔1.
Before completing the listing (pre-listing) ex: walkthrough of property, etc...
2. While listing is in effect (during listing) ex: start and track the marketing plan, etc...
3. Managing the transaction process (offer negotiations and transaction management)
ex: inform/assist the seller with handling of offers, etc...
✔✔What are the 3 phases of due diligence when representing a buyer client? - ✔✔1.
Before completing the buyer representation agreement ex: includes identifying the
buyers needs.
2. While representation agreement in effect (showing properties) ex: discussing market
trends.
3. Drafting offers, negotiations and transaction follow-up (managing the transaction) ex:
handling negotiations
✔✔what are the thre basic types of listings? - ✔✔open, exclusive, listing service
✔✔What are the 4 possible changes to agreements? - ✔✔Amendment (change),
Suspension (pause), Cancellation (cancel), Assignment (transfer)
✔✔What is a semi-detached house? - ✔✔two attached dwellings with a party wall
✔✔what is a link house? - ✔✔linked below ground
✔✔What is a fee simple estate ? - ✔✔A fee simple estate, commonly referred to as
freehold, is the highest estate/absolute right in land with the most rights (bundle of
rights) and fewest limitations for an indefinite length of time
✔✔What is a leasehold estate? - ✔✔An interest in land for a definite time period with
limited rights compared to fee simple
✔✔What are the bundle of rights that an owner has? - ✔✔Sell
Lease
Use
Do nothing
Give away
Enter (right to access)
think SLUDGE
✔✔What are the ownership limitations? - ✔✔Police Power
Expropriation
Taxation
, Think PET
✔✔What is Expropriation in regards to ownership limitations? - ✔✔The government has
the right of eminent domain (right to expropriate private property for public use)
pursuant to the expropriations Act
✔✔What is Police Power (Right to regulare) in regards to ownership limitations? -
✔✔The government has the right to invoke federal/provincial statues and municipal
regulations that limit ownership rights.
Police power in real estate refers to the authority exhibited by the state government in
enforcing security and safety regulations regarding property ownership.
the inherent authority of government to regulate private property to protect public safety,
health, morals, and general welfare. This power allows governments to enact laws and
regulations that restrict how land can be used, developed, and occupied.
Police power regulates property use without necessarily taking ownership. while
expropriation involves the government taking ownership or title to the land, usually with
compensation to the owner.
✔✔What is Taxation in regards to ownership limitations? - ✔✔Municipalities have the
right to tax real property as well as impose special levies for local improvements.
✔✔What is a restrictive covenant? (ownership-private restriction) - ✔✔When registered
on title, it is legally attached to the property (runs with the land), it limits the use of the
property in a way, for example, restrictions set out in a subdivision agreement such as
parking rules or satellite dish installation requirements.
✔✔What is an easement? - ✔✔Right of one landowner (dominant tenement) over
another (servient tenement), normally for a particular purpose (access).
✔✔What is concurrent ownership? - ✔✔occurs when 2 or more persons have the right
of ownership at the same time, either joint tenancy or tenants in common
✔✔What is joint tenancy? - ✔✔To create a joint tenancy 4 unities must be satisfied
(PITT) if any unity is missing it becomes tenancy in common.
Possession: each joint tenant has a right to undivided possession of the property, but
not exclusive possession.
Interest (size of): Each joint tenant has the same interest (50/50)
Time: Joint tenants interests must begin at the same time
AND ANSWERS RATED A+
✔✔What is the principals duty to indemnify? - ✔✔the principal will reimburse for
amounts paid and to compensate for loss/damages due to an unforeseen event, when
the agent is performing lawful acts on behalf of the principal.
✔✔what does the duty of care entail for customers? - ✔✔limited duty which involves
providing accurate information, performing functions (if any), and limited disclosure and
privacy obligations. do not provide advice.
✔✔what are the agency's obligations? - ✔✔general, fiduciary, and regulatory
✔✔What are the 8 general obligations owed to clients? - ✔✔1. perform mandate (fulfill
duties set out in the representation agreement)
2. obey instructions (lawful)
3. Act in Person (perform duties personally, unless instructed otherwise)
4. negotiate favourable terms (advance the clients interests)
5. maintain confidentiality (protect the clients information)
6. disclose information (fully inform client of all relevant details and conflict of interests)
*7. exercise skill and care (answer questions conscientiously and perform obligations
completely)
*8. ensure honesty (provide accurate information)
✔✔what are the fiduciary obligations owed to clients? - ✔✔1. Not misuse confidential
information
2. not make secret profit
3. disclose conflicts
4. avoid conflicts of interests
5. maintain utmost loyalty
✔✔what are the regulatory obligations owed to clients? - ✔✔1. Disclosure
(representative capacity)
2. agency relationships/forms
3. to deliver agreements, offers, statements
4. to account
5. remuneration provisions
6. not to induce, breach, or make certain promises
* owed to customers as well
✔✔What are the general obligations and duty of care owed to customers? - ✔✔exercise
care and skill, ensure honesty, provide information, perform functions, limited
disclosure/privacy obligations.
,✔✔What are the two steps for multiple representation disclosure? - ✔✔Step 1:
disclosure before agreement to be represented
Step 2: disclosure before offer is presented
✔✔What are the 3 phases of due diligence when representing a seller client? - ✔✔1.
Before completing the listing (pre-listing) ex: walkthrough of property, etc...
2. While listing is in effect (during listing) ex: start and track the marketing plan, etc...
3. Managing the transaction process (offer negotiations and transaction management)
ex: inform/assist the seller with handling of offers, etc...
✔✔What are the 3 phases of due diligence when representing a buyer client? - ✔✔1.
Before completing the buyer representation agreement ex: includes identifying the
buyers needs.
2. While representation agreement in effect (showing properties) ex: discussing market
trends.
3. Drafting offers, negotiations and transaction follow-up (managing the transaction) ex:
handling negotiations
✔✔what are the thre basic types of listings? - ✔✔open, exclusive, listing service
✔✔What are the 4 possible changes to agreements? - ✔✔Amendment (change),
Suspension (pause), Cancellation (cancel), Assignment (transfer)
✔✔What is a semi-detached house? - ✔✔two attached dwellings with a party wall
✔✔what is a link house? - ✔✔linked below ground
✔✔What is a fee simple estate ? - ✔✔A fee simple estate, commonly referred to as
freehold, is the highest estate/absolute right in land with the most rights (bundle of
rights) and fewest limitations for an indefinite length of time
✔✔What is a leasehold estate? - ✔✔An interest in land for a definite time period with
limited rights compared to fee simple
✔✔What are the bundle of rights that an owner has? - ✔✔Sell
Lease
Use
Do nothing
Give away
Enter (right to access)
think SLUDGE
✔✔What are the ownership limitations? - ✔✔Police Power
Expropriation
Taxation
, Think PET
✔✔What is Expropriation in regards to ownership limitations? - ✔✔The government has
the right of eminent domain (right to expropriate private property for public use)
pursuant to the expropriations Act
✔✔What is Police Power (Right to regulare) in regards to ownership limitations? -
✔✔The government has the right to invoke federal/provincial statues and municipal
regulations that limit ownership rights.
Police power in real estate refers to the authority exhibited by the state government in
enforcing security and safety regulations regarding property ownership.
the inherent authority of government to regulate private property to protect public safety,
health, morals, and general welfare. This power allows governments to enact laws and
regulations that restrict how land can be used, developed, and occupied.
Police power regulates property use without necessarily taking ownership. while
expropriation involves the government taking ownership or title to the land, usually with
compensation to the owner.
✔✔What is Taxation in regards to ownership limitations? - ✔✔Municipalities have the
right to tax real property as well as impose special levies for local improvements.
✔✔What is a restrictive covenant? (ownership-private restriction) - ✔✔When registered
on title, it is legally attached to the property (runs with the land), it limits the use of the
property in a way, for example, restrictions set out in a subdivision agreement such as
parking rules or satellite dish installation requirements.
✔✔What is an easement? - ✔✔Right of one landowner (dominant tenement) over
another (servient tenement), normally for a particular purpose (access).
✔✔What is concurrent ownership? - ✔✔occurs when 2 or more persons have the right
of ownership at the same time, either joint tenancy or tenants in common
✔✔What is joint tenancy? - ✔✔To create a joint tenancy 4 unities must be satisfied
(PITT) if any unity is missing it becomes tenancy in common.
Possession: each joint tenant has a right to undivided possession of the property, but
not exclusive possession.
Interest (size of): Each joint tenant has the same interest (50/50)
Time: Joint tenants interests must begin at the same time
