Real Estate Salesperson Licensing Exam
(Ontario) Practice Questions And
Correct Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1. Which of the following best describes the role of a real estate
salesperson in Ontario?
a) Acts independently without oversight
b) Provides legal advice to clients
c) Works under a registered real estate broker and facilitates
transactions
d) Determines property zoning regulations
Rationale: In Ontario, a real estate salesperson must be employed by
a registered broker and cannot operate independently.
,2. What is the main regulatory body governing real estate professionals
in Ontario?
a) Ontario Real Estate Board (OREB)
b) Real Estate Council of Ontario (RECO)
c) Ontario Ministry of Housing
d) Canadian Real Estate Association (CREA)
Rationale: RECO is the statutory body responsible for regulating real
estate professionals in Ontario.
3. Which of the following documents is legally required for a real estate
transaction in Ontario?
a) Listing agreement
b) Agreement of Purchase and Sale
c) Mortgage pre-approval letter
d) Home inspection report
Rationale: The Agreement of Purchase and Sale is the binding legal
contract outlining the terms of a real estate transaction.
4. In Ontario, a salesperson must disclose their role to all parties involved
in a transaction:
a) Only to the buyer
b) Only to the seller
c) To all parties in the transaction
d) Disclosure is optional
, Rationale: Full disclosure of agency relationships is required to
ensure transparency and avoid conflicts of interest.
5. Which type of listing gives one broker the exclusive right to sell a
property for a specified period?
a) Open listing
b) Exclusive listing
c) Net listing
d) Multiple listing
Rationale: An exclusive listing allows one brokerage the exclusive
right to market and sell the property.
6. A real estate salesperson must keep client records for a minimum of:
a) 1 year
b) 2 years
c) 6 years
d) 10 years
Rationale: RECO requires that client records be retained for at least
six years from the date of the transaction.
7. Which of the following statements regarding dual agency is correct in
Ontario?
a) Dual agency is prohibited under all circumstances
b) Dual agency is allowed if both parties provide informed consent
c) Dual agency can be assumed without disclosure
d) Dual agency applies only to commercial transactions
, Rationale: Dual agency can occur when a salesperson represents
both buyer and seller, but full informed consent is mandatory.
8. Which of the following best describes a fiduciary duty?
a) Providing general market information
b) Acting in the best interest of the client with loyalty, honesty, and
good faith
c) Negotiating the lowest price for oneself
d) Ensuring all parties sign contracts
Rationale: Fiduciary duty requires acting with loyalty and putting the
client’s interests first.
9. Which document outlines a seller’s disclosure obligations for a
property?
a) Listing agreement
b) Seller Property Information Statement (SPIS)
c) Agreement of Purchase and Sale
d) Mortgage commitment
Rationale: The SPIS informs the buyer about known defects and
conditions affecting the property.
10. In Ontario, which of the following is considered a trade in real
estate?
a) Appraising properties for tax purposes
b) Conducting home inspections
c) Buying, selling, or leasing real estate for others for compensation
(Ontario) Practice Questions And
Correct Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1. Which of the following best describes the role of a real estate
salesperson in Ontario?
a) Acts independently without oversight
b) Provides legal advice to clients
c) Works under a registered real estate broker and facilitates
transactions
d) Determines property zoning regulations
Rationale: In Ontario, a real estate salesperson must be employed by
a registered broker and cannot operate independently.
,2. What is the main regulatory body governing real estate professionals
in Ontario?
a) Ontario Real Estate Board (OREB)
b) Real Estate Council of Ontario (RECO)
c) Ontario Ministry of Housing
d) Canadian Real Estate Association (CREA)
Rationale: RECO is the statutory body responsible for regulating real
estate professionals in Ontario.
3. Which of the following documents is legally required for a real estate
transaction in Ontario?
a) Listing agreement
b) Agreement of Purchase and Sale
c) Mortgage pre-approval letter
d) Home inspection report
Rationale: The Agreement of Purchase and Sale is the binding legal
contract outlining the terms of a real estate transaction.
4. In Ontario, a salesperson must disclose their role to all parties involved
in a transaction:
a) Only to the buyer
b) Only to the seller
c) To all parties in the transaction
d) Disclosure is optional
, Rationale: Full disclosure of agency relationships is required to
ensure transparency and avoid conflicts of interest.
5. Which type of listing gives one broker the exclusive right to sell a
property for a specified period?
a) Open listing
b) Exclusive listing
c) Net listing
d) Multiple listing
Rationale: An exclusive listing allows one brokerage the exclusive
right to market and sell the property.
6. A real estate salesperson must keep client records for a minimum of:
a) 1 year
b) 2 years
c) 6 years
d) 10 years
Rationale: RECO requires that client records be retained for at least
six years from the date of the transaction.
7. Which of the following statements regarding dual agency is correct in
Ontario?
a) Dual agency is prohibited under all circumstances
b) Dual agency is allowed if both parties provide informed consent
c) Dual agency can be assumed without disclosure
d) Dual agency applies only to commercial transactions
, Rationale: Dual agency can occur when a salesperson represents
both buyer and seller, but full informed consent is mandatory.
8. Which of the following best describes a fiduciary duty?
a) Providing general market information
b) Acting in the best interest of the client with loyalty, honesty, and
good faith
c) Negotiating the lowest price for oneself
d) Ensuring all parties sign contracts
Rationale: Fiduciary duty requires acting with loyalty and putting the
client’s interests first.
9. Which document outlines a seller’s disclosure obligations for a
property?
a) Listing agreement
b) Seller Property Information Statement (SPIS)
c) Agreement of Purchase and Sale
d) Mortgage commitment
Rationale: The SPIS informs the buyer about known defects and
conditions affecting the property.
10. In Ontario, which of the following is considered a trade in real
estate?
a) Appraising properties for tax purposes
b) Conducting home inspections
c) Buying, selling, or leasing real estate for others for compensation
