Sample questions: Real estate salesperson (Ontario) exam

1. Section 1 of the Code of Ethics requires a registrant carrying on business to act with courtesy, honesty, good faith and integrity toward which persons?

1. Every person the registrant deals with
2. The parties named in an agreement
3. The clients the registrant represents
4. Persons who are registered under TRESA

Section 1 of the Code of Ethics applies the duty “in relation to every person the registrant deals with”, so it is not limited to clients, to parties named in an agreement or to other registrants.

2. If the registrar has not specified a time period, for how long must a brokerage retain the records it is required to make under TRESA and its regulations?

1. At least 2 years
2. At least 10 years
3. At least 6 years
4. At least 15 years

Section 19 of O. Reg. 579/05 requires a brokerage to retain its records “for the time period specified by the registrar or, if the registrar has not specified a time period, for at least six years”. Two and ten years are not the default period, and fifteen years appears nowhere in the section.

3. A house is listed at $649,900 and sells for $625,000, with a deposit of $30,000. The written listing agreement sets the commission at 4% of the sale price. What is the commission?

1. $1,200
2. $25,000
3. $2,500
4. $25,996

The commission is 4% of the sale price: $625,000 × 0.04 = $25,000. The figure of $25,996 applies 4% to the listing price, $1,200 applies 4% to the deposit, and $2,500 slips the decimal and applies 0.4%. Under section 23 (1) (a) of the General Regulation the entitlement arises under the written agreement.

4. Under the Condominium Act, 1998, “common elements” means:

1. The parts of a building that one owner uses
2. The space enclosed by the boundaries of a unit
3. All of the property except for the units
4. The assets owned by the board of directors

Section 1 defines “common elements” as “all the property except the units”. The space within a unit’s boundaries is the unit itself, a part used by one owner can still be a common element, and the assets of the corporation are separate from the property.

5. Ben Alvarez, a salesperson, represents seller Carol Dubois. On Sunday night, a buyer's salesperson sends Ben a written offer that is 20% below the list price. Ben believes Carol will find the offer insulting. What must Ben do?

1. Hold it until Carol asks about offers
2. Reject it for Carol since it is far below list
3. Convey it to Carol as soon as possible
4. Wait for a better offer before telling Carol

Section 22.10 (1) of the General Regulation requires a registrant to “convey any written offer received by the registrant” to the client as soon as possible. Subsection 22.10 (3) makes this duty apply “regardless of the identity of the person making the offer, the contents of the offer” or the remuneration arrangements. Ben cannot hold, reject or delay the offer on his own judgment.

6. A tenant's floor has 10,000 square feet of usable area and 11,500 square feet of rentable area. The load factor is the difference between the two areas expressed as a percentage of the usable area. What is the load factor?

1. 15%
2. 13%
3. 87%
4. 115%

The difference is 11,500 - 10,000 = 1,500 square feet, and 1,500 / 10,000 = 15%. Dividing by the rentable area instead gives 13%, dividing usable by rentable gives 87%, and dividing rentable by usable gives 115%.

7. Salesperson Imani Brooks represents a buyer whose offer on a commercial condominium unit is conditional on reviewing the status certificate. Imani requests it from the condominium corporation and pays the fee charged. Within what period must the corporation give the status certificate?

1. Within 2 days
2. Within 5 days
3. Within 20 days
4. Within 10 days

Section 76 (3) of the Condominium Act, 1998 requires the corporation to give the status certificate “within 10 days after receiving a request for it and payment of the fee charged by the corporation for it”. Two, five and twenty days are not the period set by the Act.