REAL ESTATE EXAM QUESTIONS AND 100%
CORRECT ANSWERS|LATEST 2025/2026|GRADED
A+
Fairness and Honesty, Conscientious and Competent Service and Services from others are all
obligations under - ANSWER The Code of Ethics
The number of buyers who want to purchase properties exceeds the available properties
(more demand than supply) - ANSWER Sellers Market
The number of properties available exceeds the number of buyers looking to purchase (more
supply than demand) - ANSWER Buyers market
The number of listings is sufficient for the number of buyers (supply and demand are equal) -
ANSWER Balanced Market
How is real estate regulated in Ontario? - ANSWER the Ministry of Government and
Consumer Services is responsible for REBBA, it is the RECO's role to interpret, enforce, and
suggest modifications to the legislation
Corporation, partnership, or sole proprietorship that trades in real estate on behalf of others
for compensation or reward, or expected thereof. Agreements to represent or provide
services to a seller or a buyer relating to a trade in real estate are with the brokerage, and
not the individual broker or salesperson. Under REBBA, all brokers and sales persons are
deemed employees of the brokerage. - ANSWER Brokerage
All brokerages are required to have a broker of record. The individual is a broker who is
designated by the brokerage to ensure compliance with REBBA. In the case if a brokerage
that is a corporation or partnership, a broker of record can be any broker employed by the
brokerage. For a sole proprietorship, the broker of record must be the sole proprietor. The
broker of record is responsible for all activities of the brokerage, including all brokers,
salespersons, and all other employees of the brokerage. - ANSWER Broker of Record
1
Wicky
,An individual with the prescribed qualifications to be a registered sales person under REBBA
and who is employed by a brokerage to trade in real estate. To obtain registration as a
salesperson, the individual must complete program and complete additional educational
requirements within the first two years of registration. - ANSWER Sales Person
anyone registered under REBBA - ANSWER Registrant
What is the relationship between the brokerage and a seller and a buyer? -
ANSWER Any agreement with a seller or a buyer is made with the brokerage, and not
the individual broker or salesperson.
Representing the seller, Marketing the property, prospecting, preparing the property to be
shown, qualifying buyers and showing the property, preparing and presenting an offer -
ANSWER Activities of a salesperson
Typically refers solely to the tangible aspects of a property (includes lands and building(s)
upon it). The term "improvements is also used to refer to any structure or other permanent
addition such as a deck, shed or fence. - ANSWER Real Estate
Property is viewed as either real or personal. Real property includes the tangible and non
tangible (rights) to the property. In many transactions, the property rights being conveyed
are commonly referred to as the bundle of rights. This is the rights to posses, use, enjoy, and
sell the real estate. Rights associated with real property are key to the value of the property.
For example, an appraiser will identify what rights are being analyzed when estimating
value, especially when the rights are less than the bundle of rights - ANSWER Real
Property
Movable and is referred to as consumer goods. Examples include appliances, furniture, light
fixtures and drapes. As a salesperson, personal property can become part of the
negotiations between a seller and a buyer. It is important to understand the legal obligations
relating to personal property. - ANSWER Personal Property
2
Wicky
,A disposition or acquisition of or transaction in real estate by sale, purchase, agreement for
purchase and sale, exchange, option, lease, rental, or otherwise and any offer or attempt to
list real estate for the purpose of such disposition, acquisition, transaction, offer, or attempt
- ANSWER Trade
Conversing with a prospective seller regarding the intent to list a property for sale in the
future (trading not trading) - ANSWER Trading
Hosting an open house for another salesperson (trading not trading) -
ANSWER Trading
Posting a weekly blog that talks about market trends and other real estate topics (trading
not trading) - ANSWER Trading
Providing advice to a long term neighbour who has been contemplating selling, in attempt to
secure a future listing - ANSWER Trading
Implies an agency relationship has been established between two parties. An agency
relationship places both regulatory and fiduciary obligations on the brokerage. Fiduciary
obligations generally require the brokerage to be loyal, not disclose confidential information,
and promote and protect the seller or buyers best interests. - ANSWER Representation
A brokerage can provide services to a seller or buyer rather than represent the party.
Providing services does not place the same level of obligations on the brokerage as when the
representation has been established. A brokerage must treat the party with fairness,
honesty and integrity, and ensure that any information provided is accurate. No fiduciary
obligations are owed when providing services, such as loyalty, confidentiality or promoting
their best interests. - ANSWER Providing Services
Represented by a brokerage and is owed loyalty, confidentiality and many other obligations
both under REBBA and the common law of agency. Client can be a seller or a buyer -
ANSWER Client
3
Wicky
, A person who is receiving services from a brokerage. A customer does not receive the same
level of service from the brokerage as a client. A brokerage owes fewer duties and
obligations to a customer and the customer must clearly understand that the brokerage is
not representing them in a transaction. In REBBA the customer can be a seller or a buyer -
ANSWER Customer
Term used when a brokerage represents a seller or a buyer as a client. An agency
relationship can be created in a number of ways such as a written or a verbal agreement.
However, the Code of Ethics requires that a registrant must reduce a verbal representation
agreement with a seller or a buyer to writing at the earliest practical opportunity and before
any offer is made, have it signed on behalf of the brokerage and submit it to the seller or the
buyer for a signature - ANSWER Representation Agreement
Term used when a brokerage provides services to a customer, it can be written or verbal.
However, the code of Ethics requires that a registrant must reduce verbal representation
agreement with a seller or a buyer to writing at the earliest practical opportunity, have it
signed on behalf of the brokerage and submit it to the seller or the buyer for signature.
Distinct from a representation agreement with a client and can be non-exclusive -
ANSWER Customer Service Agreement
Document used to negotiate the terms of a sale between a seller and a buyer. Under REBBA,
an agreement of purchase and sale is referred to as an agreement for the conveyance of an
interest in real estate. Agreements of purchase and sale must be in writing and signed by the
parties to be enforceable; however, there is no standard form required to be used. Various
agreements of purchase and sale are commonly sed within the marketplace and can differ
depending on the property type; Residential property with a single family dwelling,
Residential Condo, Residential Co-operative party, Property located on a leased parcel of
land, Commercial property, Commercial Condo, Sale of Business. -
ANSWER Agreement of purchase and sale
Commission is paid to a brokerage as compensation for the service provided on the sale or
lease of a property. - ANSWER Commission agreements
Fixtures (personal property) are securely attached - used permanently - to a property and
are to remain upon the sale of the property. If a seller wants to retain any fixture, the
4
Wicky
CORRECT ANSWERS|LATEST 2025/2026|GRADED
A+
Fairness and Honesty, Conscientious and Competent Service and Services from others are all
obligations under - ANSWER The Code of Ethics
The number of buyers who want to purchase properties exceeds the available properties
(more demand than supply) - ANSWER Sellers Market
The number of properties available exceeds the number of buyers looking to purchase (more
supply than demand) - ANSWER Buyers market
The number of listings is sufficient for the number of buyers (supply and demand are equal) -
ANSWER Balanced Market
How is real estate regulated in Ontario? - ANSWER the Ministry of Government and
Consumer Services is responsible for REBBA, it is the RECO's role to interpret, enforce, and
suggest modifications to the legislation
Corporation, partnership, or sole proprietorship that trades in real estate on behalf of others
for compensation or reward, or expected thereof. Agreements to represent or provide
services to a seller or a buyer relating to a trade in real estate are with the brokerage, and
not the individual broker or salesperson. Under REBBA, all brokers and sales persons are
deemed employees of the brokerage. - ANSWER Brokerage
All brokerages are required to have a broker of record. The individual is a broker who is
designated by the brokerage to ensure compliance with REBBA. In the case if a brokerage
that is a corporation or partnership, a broker of record can be any broker employed by the
brokerage. For a sole proprietorship, the broker of record must be the sole proprietor. The
broker of record is responsible for all activities of the brokerage, including all brokers,
salespersons, and all other employees of the brokerage. - ANSWER Broker of Record
1
Wicky
,An individual with the prescribed qualifications to be a registered sales person under REBBA
and who is employed by a brokerage to trade in real estate. To obtain registration as a
salesperson, the individual must complete program and complete additional educational
requirements within the first two years of registration. - ANSWER Sales Person
anyone registered under REBBA - ANSWER Registrant
What is the relationship between the brokerage and a seller and a buyer? -
ANSWER Any agreement with a seller or a buyer is made with the brokerage, and not
the individual broker or salesperson.
Representing the seller, Marketing the property, prospecting, preparing the property to be
shown, qualifying buyers and showing the property, preparing and presenting an offer -
ANSWER Activities of a salesperson
Typically refers solely to the tangible aspects of a property (includes lands and building(s)
upon it). The term "improvements is also used to refer to any structure or other permanent
addition such as a deck, shed or fence. - ANSWER Real Estate
Property is viewed as either real or personal. Real property includes the tangible and non
tangible (rights) to the property. In many transactions, the property rights being conveyed
are commonly referred to as the bundle of rights. This is the rights to posses, use, enjoy, and
sell the real estate. Rights associated with real property are key to the value of the property.
For example, an appraiser will identify what rights are being analyzed when estimating
value, especially when the rights are less than the bundle of rights - ANSWER Real
Property
Movable and is referred to as consumer goods. Examples include appliances, furniture, light
fixtures and drapes. As a salesperson, personal property can become part of the
negotiations between a seller and a buyer. It is important to understand the legal obligations
relating to personal property. - ANSWER Personal Property
2
Wicky
,A disposition or acquisition of or transaction in real estate by sale, purchase, agreement for
purchase and sale, exchange, option, lease, rental, or otherwise and any offer or attempt to
list real estate for the purpose of such disposition, acquisition, transaction, offer, or attempt
- ANSWER Trade
Conversing with a prospective seller regarding the intent to list a property for sale in the
future (trading not trading) - ANSWER Trading
Hosting an open house for another salesperson (trading not trading) -
ANSWER Trading
Posting a weekly blog that talks about market trends and other real estate topics (trading
not trading) - ANSWER Trading
Providing advice to a long term neighbour who has been contemplating selling, in attempt to
secure a future listing - ANSWER Trading
Implies an agency relationship has been established between two parties. An agency
relationship places both regulatory and fiduciary obligations on the brokerage. Fiduciary
obligations generally require the brokerage to be loyal, not disclose confidential information,
and promote and protect the seller or buyers best interests. - ANSWER Representation
A brokerage can provide services to a seller or buyer rather than represent the party.
Providing services does not place the same level of obligations on the brokerage as when the
representation has been established. A brokerage must treat the party with fairness,
honesty and integrity, and ensure that any information provided is accurate. No fiduciary
obligations are owed when providing services, such as loyalty, confidentiality or promoting
their best interests. - ANSWER Providing Services
Represented by a brokerage and is owed loyalty, confidentiality and many other obligations
both under REBBA and the common law of agency. Client can be a seller or a buyer -
ANSWER Client
3
Wicky
, A person who is receiving services from a brokerage. A customer does not receive the same
level of service from the brokerage as a client. A brokerage owes fewer duties and
obligations to a customer and the customer must clearly understand that the brokerage is
not representing them in a transaction. In REBBA the customer can be a seller or a buyer -
ANSWER Customer
Term used when a brokerage represents a seller or a buyer as a client. An agency
relationship can be created in a number of ways such as a written or a verbal agreement.
However, the Code of Ethics requires that a registrant must reduce a verbal representation
agreement with a seller or a buyer to writing at the earliest practical opportunity and before
any offer is made, have it signed on behalf of the brokerage and submit it to the seller or the
buyer for a signature - ANSWER Representation Agreement
Term used when a brokerage provides services to a customer, it can be written or verbal.
However, the code of Ethics requires that a registrant must reduce verbal representation
agreement with a seller or a buyer to writing at the earliest practical opportunity, have it
signed on behalf of the brokerage and submit it to the seller or the buyer for signature.
Distinct from a representation agreement with a client and can be non-exclusive -
ANSWER Customer Service Agreement
Document used to negotiate the terms of a sale between a seller and a buyer. Under REBBA,
an agreement of purchase and sale is referred to as an agreement for the conveyance of an
interest in real estate. Agreements of purchase and sale must be in writing and signed by the
parties to be enforceable; however, there is no standard form required to be used. Various
agreements of purchase and sale are commonly sed within the marketplace and can differ
depending on the property type; Residential property with a single family dwelling,
Residential Condo, Residential Co-operative party, Property located on a leased parcel of
land, Commercial property, Commercial Condo, Sale of Business. -
ANSWER Agreement of purchase and sale
Commission is paid to a brokerage as compensation for the service provided on the sale or
lease of a property. - ANSWER Commission agreements
Fixtures (personal property) are securely attached - used permanently - to a property and
are to remain upon the sale of the property. If a seller wants to retain any fixture, the
4
Wicky
