🧭 Simulation Exam 1: Residential Real Estate Transactions

1. Priya Nair, a salesperson with Harbourview Realty Inc., meets Tom and Lena Oakes at an open house. They ask her to help them find a townhouse. Before she provides any services or assistance to them in relation to a trade in real estate, what must Priya do?

1. Give them the RECO Information Guide and explain it
2. Have them sign a buyer representation agreement now
3. Give them the self-represented party disclosure form
4. Obtain their written consent to multiple representation

Section 13 (3) of the General Regulation requires a registrant, before providing services or assistance in relation to trading in real estate, to provide a copy of the information guide or a link to it, and section 13 (4) requires a broker or salesperson to explain its contents. A buyer representation agreement may follow from that conversation but is not a precondition. The self-represented party form under section 13.1 applies only when a brokerage assists a person while it provides services to a client in the trade, and consent to multiple representation under section 22 arises only when the brokerage would represent more than one client in the same trade.

2. Marcus Teo, who has no agent, calls Dana Fox, a salesperson at Cedar Point Realty Ltd., about a listing. Cedar Point represents the seller, and Marcus chooses to proceed as a self-represented party. The brokerage will give him limited assistance and has already given him the information that section 13.1 (1) of the General Regulation requires. What must the brokerage then do with respect to Marcus?

1. Explain it and seek his written acknowledgement
2. Have him sign a buyer representation agreement now
3. Obtain his written consent to multiple representation
4. Send a copy of his signed form to RECO for approval

Section 13.1 (3) of the General Regulation requires the brokerage to explain the information and to “make best efforts to obtain a written acknowledgement from the self-represented party indicating that the information has been received”. Marcus is not a client, so a buyer representation agreement and the multiple representation consent under section 22 do not apply, and section 13.1 does not require any approval from RECO.

3. Dana Fox, a salesperson at Cedar Point Realty Ltd., represents the seller of a semi-detached home. Marcus Teo, a self-represented buyer, visits the open house after receiving the required information. Which of the following would Dana NOT be permitted to do?

1. Tell him in what year the home was built
2. Hand him the feature sheet given to every visitor
3. Give him the RECO Information Guide and explain it
4. Tell him what price he should offer for the home

Section 10 of the Code of Ethics provides that a registrant shall not “provide services, opinions or advice to a self-represented party”, and advice on the price to offer is exactly that. Giving factual answers about the property or a feature sheet is providing information, which RECO Bulletin 2.7 describes as permitted for any person. Providing and explaining the information guide is required by section 13 of the General Regulation.

4. Hannah Greer agrees by telephone to list her condominium with Birchmount Realty Ltd. Salesperson Kofi Mensah confirms the details, but nothing is signed. By when must the brokerage reduce the seller representation agreement to writing, have it signed on its behalf and give it to Hannah for signature?

1. Within 30 days after the first showing of the home
2. Before the sale closes and the commission is paid
3. On the date the seller asks the brokerage for a copy
4. As soon as possible, before a buyer makes an offer

Section 13.5 (1) of the General Regulation requires the brokerage to act “as soon as possible after entering the agreement and before any buyer makes an offer”. No fixed number of days after a showing applies, the seller does not have to ask for the writing, and waiting until closing would be long after the offers the rule is meant to precede.

5. Sunil Rao, a salesperson at Maplecrest Realty Inc., drafts a written seller representation agreement for Grace Ito. The draft states its expiry date in a clause on page 4. Which change is required before the brokerage may enter the agreement under section 13.4 of the General Regulation?

1. Show the expiry date on page one, with Grace initialling it
2. Keep the expiry date on page four and have Sunil initial it
3. Add a second expiry date to cover any renewal of the term
4. Move the expiry date next to the signature lines of the parties

Section 13.4 (1) requires that “The expiry date is displayed prominently on the first page of the agreement” and that the seller has initialled the agreement next to the expiry date. The initials must be the seller’s, not the salesperson’s. Section 13.4 (2) also requires that the agreement contain only one date on which it expires, so a second renewal expiry date would breach the section.

6. Ravi Chopra asks Silverbirch Realty Inc. to show him five homes but says he does not want the brokerage to represent him or to be his client. The brokerage proposes a written showing-only agreement that includes no representation. Ravi has received the RECO Information Guide and has initialled the agreement next to its expiry date. Under section 13.3.1 of the General Regulation, what is the position?

1. It may enter the agreement because Ravi has initialled it
2. It must not enter the agreement because it lacks representation
3. It may enter the agreement if the broker of record signs
4. It may enter the agreement if the services are limited to showings

Section 13.3.1 provides that a brokerage “shall not enter into an agreement with a buyer or seller for the purposes of trading in real estate if the agreement does not include the provision of representation”. Initialling the expiry date is a separate requirement of section 13.4, and neither a signature by the broker of record nor a limit to showings cures the missing representation. Ravi may still choose to be a self-represented party.

7. Lily Park and Theo Adams are salespersons at Northgate Realty Inc. Lily represents seller Omar Haddad and Theo represents buyer Joy Lin, both under brokerage representation agreements. Joy tells Theo she wants to make an offer on Omar’s home. What must the brokerage do before it continues to act for both?

1. Continue, because two different salespersons act for the clients
2. Disclose the situation to Joy after her offer is accepted
3. Get Omar’s written consent, since his listing came first
4. Disclose to both clients and get each one’s written consent

Section 22 (1) of the General Regulation bars the brokerage from representing more than one client in the same trade unless it makes the disclosure and each client, after receiving it, “consents in writing, to being represented by the brokerage in respect of the trade”. RECO Bulletin 2.2 states that “it does not matter if each client is working with a different agent employed by the brokerage”. Consent from one client only, or disclosure after acceptance, does not satisfy section 22.

8. Northgate Realty Inc. uses designated representation agreements only. Aisha Khan is the designated representative for seller Carl Boyd, and her colleague Ben Ortiz is the designated representative for buyer Nina Ross in the same trade. The brokerage itself represents neither client. Which statement is correct?

1. Multiple representation arises, so both clients must consent in writing
2. Multiple representation arises for the brokerage but not for the two agents
3. Ben may read Aisha’s file for Carl because they share a brokerage
4. Multiple representation does not arise, but confidences must be protected

Under RECO Bulletins 2.2 and 3.2, multiple representation under designated representation arises only when the same agent is the designated representative for the seller and the buyer; two different designated representatives do not create it. Section 22.0.5 of the General Regulation still requires each designated representative to protect client confidences by “not disclosing a client’s confidential information to any other broker or salesperson employed by the same brokerage”, and section 22.0.4 requires the brokerage to treat the interests of its clients objectively and impartially.

9. Under the seller representation agreement between Cedar Point Realty Ltd. and Mia Torres, the brokerage’s commission is 5% of the first $100,000 of the sale price plus 2.5% of the balance of the sale price. Tax is ignored. The home sells for $840,000. What total commission is payable to the brokerage?

1. $21,000
2. $23,500
3. $26,000
4. $42,000

Section 13.4 (1) of the General Regulation requires the agreement to set out the method for determining the remuneration, and here that method is tiered: 5% of $100,000 is $5,000, and 2.5% of the $740,000 balance is $18,500, for a total of $23,500. $21,000 applies 2.5% to the whole price, $26,000 adds 2.5% of the whole price to the first-tier $5,000 and so counts the first $100,000 twice, and $42,000 applies 5% to the whole price.

10. Omar Singh, a salesperson at Redwood Realty Inc., represents buyers Lucy and Paul Wen. Omar learns that the home they want to buy is owned by his sister. To whom must Omar disclose his sister’s interest, and by when?

1. To the Wens, once the seller has accepted their offer
2. To the Wens and each party to an offer, before it is made
3. To the seller, at the time that the offer is presented
4. To the broker of record, within a week after closing

Section 22.9 (1) of the General Regulation requires a registrant to disclose a property interest that a person related to the registrant has in the real estate. Under subsection (2) the disclosure goes to the client and to “Every other person making or receiving an offer in respect of the acquisition or disposition”, and under subsection (3) it must be made “before any offer is made in respect of the acquisition or disposition of an interest in the real estate”. Telling only one person, or telling anyone after the offer stage, falls short.

11. Mei Zhang is the designated representative for Colin Hart, who is selling a rental house. Her employing brokerage, Granite Peak Realty Inc., holds a registered mortgage on the house, which is a property interest in it, and Mei knows of it. Must she disclose that interest, and why?

1. Yes, because her brokerage’s interest must be disclosed
2. No, because her brokerage does not represent Colin
3. No, because the duty is limited to her own interests
4. Yes, if the buyer asks about the brokerage’s holdings

Section 22.9 (1) 5. of the General Regulation covers a designated representative and lists “any property interest that the brokerage that employs the designated representative has in the real estate”, even though under designated representation the brokerage itself does not represent Colin. The disclosure goes to Colin and to every other person making or receiving an offer, as soon as Mei knows of the interest and before any offer is made, so it does not wait for a question from a buyer. The duty is not limited to her own interests.

12. Rahim Patel, a salesperson at Eastgate Realty Ltd., represents seller Ines Duarte. Ines tells him she must sell quickly because of a job transfer. The buyer’s salesperson asks Rahim why Ines is selling. When may Rahim reveal the reason?

1. If Ines gives written consent, or the law requires it
2. If the buyer’s salesperson is also a registrant
3. If Rahim’s broker of record approves the disclosure
4. If the buyer’s salesperson promises to keep it private

Section 12 of the Code of Ethics provides that, except as authorized or required by law, a registrant “shall not disclose to a third party any confidential information of a client without the client’s written consent”. A promise of secrecy, the other salesperson’s status as a registrant, and approval by the broker of record are not the client’s written consent.

13. Elena Vasquez, a salesperson at Pinewood Realty Inc., represents seller Greg Mills. A buyer makes an offer, and Elena realizes the buyer is her business partner in a separate venture. She has told Greg about the relationship. Which further step does section 13 of the Code of Ethics require before she may continue to act for Greg?

1. Obtain the buyer’s written consent to the partnership
2. Obtain Greg’s verbal consent at the next meeting with him
3. Advise Greg to seek independent professional advice about it
4. Ask RECO to approve the arrangement before presenting the offer

Section 13 of the Code of Ethics requires the registrant, after disclosing the relationship, to have “advised the client or prospective client to seek independent professional advice” about the disclosure, to take reasonable steps to confirm the client understands the conflict, and to obtain the client’s consent in writing. The consent needed is the seller’s, not the buyer’s, and it must be written rather than verbal. The section does not call for approval from RECO.

14. Greenfield Realty Inc. lists a bungalow for seller Amy Cho. Bilal Rana, a prospective buyer, asks Greenfield to represent him under a buyer representation agreement to buy that bungalow. Signing would put the brokerage in multiple representation. When must Greenfield make its disclosure to Bilal?

1. When Bilal submits his written offer for the home
2. Before Greenfield enters an agreement with Bilal
3. After Amy accepts the offer, before the deposit is paid
4. Within a week after the buyer agreement is signed

Section 22 (1) of the General Regulation applies to each “client and prospective client” and requires the disclosure and the written consent before the brokerage represents more than one client in the trade. RECO Bulletin 3.2 says the disclosure to a prospective client must be made immediately and consent obtained “before the brokerage enters an agreement with the prospective client”, and that “Disclosure and consent at the time an offer is submitted is, in almost all circumstances, too late.”

15. Northgate Realty Inc. gives seller Carl Boyd and buyer Nina Ross its multiple representation disclosure under section 22 of the General Regulation. Each signs a written consent to be represented by the brokerage, but Nina declines to sign a written acknowledgement that she received the disclosure. The brokerage made best efforts to obtain it. What is the position?

1. The brokerage must stop acting because the acknowledgement is mandatory
2. The brokerage may continue, having made best efforts to obtain it
3. The brokerage must treat Nina as a self-represented party from now on
4. The brokerage must obtain the acknowledgement from Nina’s salesperson

The condition in section 22 (1) is the disclosure followed by each client’s written consent. Under section 22 (4) the brokerage must only “make best efforts to obtain a written acknowledgement from each person receiving a disclosure”, and must give a copy to anyone who does acknowledge. Nina has consented as a client, so she does not become a self-represented party, and her salesperson’s acknowledgement cannot replace her own.

16. The seller representation agreement between Cedar Point Realty Ltd. and Dev Anand sets the brokerage’s commission at 5% of the sale price, reduced to 4% if the brokerage also represents the buyer in the same trade. After disclosure and written consent, Cedar Point represents both Dev and the buyer, and the home sells for $735,000. Tax is ignored. What commission is payable to the brokerage?

1. $7,350
2. $36,750
3. $35,280
4. $29,400

Section 13.4 (1) of the General Regulation requires the agreement to identify any circumstance in which the amount of remuneration may change, and multiple representation is one such circumstance because section 22 (2) refers to differences in remuneration arrangements. The rate is 4% of $735,000, which is $29,400. $7,350 is only the 1% reduction, $35,280 reduces the 5% commission of $36,750 by 4% instead of reducing the rate, and $36,750 ignores the reduction.

17. Alicia Dumont walks into Brightwater Realty Inc. and asks in what ways she may deal with a registrant. According to the information guide that section 13 of the General Regulation requires the registrar to prepare, which answer is correct?

1. As a customer under a service agreement, or as a client of an agent
2. As a client under a representation agreement, or a self-represented party
3. As a buyer’s agent under a listing, or as a dual agent of the seller and buyer
4. As a principal under an agency, or as a sub-agent of the brokerage

Section 13 (2) of the General Regulation requires the guide to indicate that a person may interact with a registrant “as a client under a representation agreement” or as a self-represented party. The customer relationship and the language of agency, sub-agency and dual agency belong to the vocabulary used when the Act was still called the Real Estate and Business Brokers Act, 2002, before it became TRESA, and they are not relationships recognized under TRESA.

18. Northgate Realty Inc. prepares a designated representation agreement for seller Carl Boyd. Which of the following must the agreement set out under section 13.4 of the General Regulation?

1. The names of the brokers and salespersons at the brokerage
2. The name of each designated representative involved
3. The account number of the brokerage’s trust account at its bank
4. The balance owing on Carl’s mortgage at the date of signing

For a designated representation agreement, section 13.4 (1) requires the agreement to set out, among other things, “the name of each designated representative under the agreement”, the services the designated representative will provide, and the fact that the brokerage will not provide representation. The agreement is not required to list every salesperson the brokerage employs, the seller’s mortgage balance or a trust account number.

19. Northgate Realty Inc. lists a duplex for seller Carl Boyd and also acts for buyer Nina Ross, who has made a written offer. Dev Anand then makes a competing written offer through a different brokerage. What must Northgate do in respect of Dev?

1. Disclose that it acts for Carl and a buyer, before any acceptance
2. Say nothing, because Dev is not one of Northgate’s own clients
3. Tell Dev the price and terms of Nina’s offer so he can compete
4. Disclose that fact once an offer is accepted, in the closing papers

Section 22.0.3 (1) of the General Regulation requires a brokerage that provides services to a seller and a buyer in the same trade to “disclose this fact to every other buyer who makes a written offer”, as soon as possible after receiving the buyer’s written offer and before an offer is accepted. Dev need not be a client for the duty to apply. The section requires disclosure of the fact that the brokerage serves both sides; it does not call for disclosing the terms of Nina’s offer.

20. Priya Nandakumar, a salesperson with Harbourview Realty Inc., has just signed a seller representation agreement with Daniel Osei for his bungalow at 41 Willow Bend Road. Daniel mentions that a former owner died in the house about eight years ago, before he bought it. He does not know the circumstances. The death left no physical damage and does not affect how the house works. What should Priya do NEXT?

1. Treat the death as a latent defect Daniel is legally bound to disclose
2. Ignore the death because the legislation does not mention stigmas
3. Advise Daniel to seek legal advice and give written instructions
4. Announce the death to every buyer before any showing is booked

RECO Bulletin 7.5 explains that a stigma is a non-physical attribute and that, when representing a seller, the agent should advise the seller to seek legal advice and “get written instructions regarding the disclosure of the stigma to buyers”. A stigma is not a latent defect, which is physical, so it is not treated as one. The fact that stigmas are not explicitly addressed in the legislation does not allow the matter to be ignored, and the agent does not announce it to buyers without the seller’s instructions.

21. Marcus Delaney, a salesperson with Cedarline Realty Ltd., represents Helen Voss, who is selling her house at 18 Orchard Lane. While preparing the listing, Helen tells Marcus that a cracked foundation wall hidden behind the finished basement drywall makes part of the house potentially dangerous. A buyer would not notice it on a reasonable inspection. Two buyers have already expressed interest in the house. What does section 22.2 of the General Regulation require Marcus to do?

1. Disclose it if a buyer asks about the foundation or basement
2. Disclose it to the buyer who later submits a written offer
3. Rely on the buyers' home inspectors to find it without disclosure
4. Tell every interested buyer and seek a written acknowledgement

A hidden defect known to Helen that makes the house potentially dangerous is a latent defect, and RECO Bulletin 7.4 says a seller must disclose latent defects. Section 22.2 (1) of the General Regulation then provides that the seller’s salesperson “shall disclose the fact to every buyer who expresses an interest in the real estate”, and section 22.2 (2) requires best efforts to obtain a written acknowledgement from each buyer. Waiting for an offer, relying on inspectors or answering only when asked does not meet that duty.

22. Aisha Rahman, a salesperson with Brightwater Realty Inc., represents Tom Kowalski, who is selling a semi-detached house at 7 Alder Crescent. A patch of rotted floorboards near the front door is plainly visible to anyone walking in. Tom intends to cover it with a large rug during showings, saying that a patent defect never has to be disclosed. How should Aisha advise Tom?

1. He must disclose it, since a patent defect equals a latent defect
2. He may cover it, because buyers are expected to inspect for themselves
3. He must disclose it, but after the buyer's inspection is complete
4. He need not disclose it, but must not conceal it from buyers

RECO Bulletin 7.4 states that a seller does not have to disclose a patent defect, which a buyer or inspector can detect by reasonable observation and inquiry. However, “a seller should not attempt to conceal the patent defect or ‘buyer beware’ may not apply”. A patent defect is not a latent defect, so a duty to disclose does not arise merely because the defect exists, and covering it is not a safe course.

23. Nadia Petrov, a salesperson with Northgate Realty Inc., has listed a detached house at 92 Maple Terrace for the seller, Gordon Hill. Gordon tells Nadia that he finished the basement himself four years ago and that all required permits were obtained. Nadia has not seen any permit or inspection record for the work. Under section 22.1 of the General Regulation, what should Nadia do NEXT?

1. Record his statement in the file and treat the matter as closed
2. Tell buyers the permits were obtained, citing Gordon's statement
3. Verify the permits through records and documents, not just his word
4. Wait until a buyer's inspector questions the basement before acting

Section 22.1 (1) (a) of the General Regulation requires a salesperson to “take reasonable steps to determine the material facts”, and RECO Bulletin 7.3 lists whether required permits were obtained for renovations as an example. The Bulletin says reasonable steps are “not met by simply accepting the seller’s verbal representations” and that research, verification and supporting documents are needed. Relying on Gordon’s word, repeating it to buyers or waiting for an inspector does not meet that standard.

24. Elena Marchetti, a salesperson with Pinecrest Realty Inc., represents buyers Omar and Lina Haddad. The seller’s brokerage has confirmed their appointment to view 5 Birchwood Drive, which has a lockbox. Omar and Lina ask Elena for the lockbox code so that Omar’s parents can see the house the next afternoon without her. The seller has given no written consent to unaccompanied access. What should Elena do?

1. Give the code but ask the parents to stay under one hour
2. Give the code, because Omar and Lina are her own clients
3. Give the code once the parents sign a written acknowledgement
4. Decline unless the seller consents in writing to that access

Section 22.5 of the General Regulation provides that a registrant “shall not provide any person with access to real estate unless” a registrant is present or the owner has consented in writing. RECO Bulletin 7.2 adds that a lockbox code must not be given to anyone, including a buyer, without the seller’s express written consent. Being the buyers’ salesperson, a signed acknowledgement from the parents or a time limit does not replace the owner’s written consent.

25. Kavita Shah, a salesperson with Eastgate Realty Ltd., represents Brian Cho, who is selling a vacant house at 230 Stonehaven Road. Brian’s lender requires an appraisal, and the appraiser needs a short walkthrough while Kavita is at another appointment. Kavita asks Brian to sign a written consent to unaccompanied access under RECO Bulletin 7.1. Which item does the Bulletin NOT list as something the consent must clearly identify?

1. The property insurer’s approval of the access
2. The date and time at which access will occur
3. The purpose for which access is being given
4. The name of the person who is being given access

RECO Bulletin 7.1 states that the written consent “must clearly identify who is being granted unaccompanied access, the date and time they are accessing the property, the purpose of accessing the property, and the duration of time they can access the property”. An insurer’s approval is not among those items; RECO Bulletin 7.2 only encourages a seller to contact the property insurer before agreeing to a lockbox. Section 22.5 of the General Regulation is satisfied once the owner has consented in writing.

26. Roberto Alvarez, a salesperson with Summit Ridge Realty Inc., has just listed Karen Whitfield’s home at 66 Lakeview Court. Karen is travelling and tells Roberto by telephone that he may put a lockbox on the front door. Roberto would like to install it this afternoon so that other agents can book showings. What should Roberto do FIRST?

1. Install it now and note Karen’s verbal consent in the file
2. Install it now and have Karen sign a consent at the first showing
3. Wait until Karen’s property insurer approves the lockbox in writing
4. Fully explain the risks and obtain Karen’s signed written consent

RECO Bulletin 7.2 states that “Lockboxes are to be installed only with the seller’s written consent” and that the agent must fully explain the risks to the seller before installation, ideally recorded in a written direction signed by the seller. Verbal consent or a consent signed after installation does not meet that requirement. The Bulletin only encourages the seller to contact the insurer, so the insurer’s approval is not what the Bulletin requires.

27. Jason Pereira, a salesperson with Tri-County Realty Inc., has a postcard printed to promote his latest listing, without showing the address. It shows his photo, his registered name, his mobile number and the words “Jason Pereira Home Team”. The postcard does not mention his brokerage. What must Jason do before the postcard is mailed?

1. Clearly and prominently show the brokerage’s registered name
2. Replace the brokerage name with the broker of record’s name
3. Show a nickname for the brokerage that clients commonly use
4. Show the brokerage’s name in small print at the bottom of the card

Section 12.1 (3) of the General Regulation provides that a salesperson shall not advertise unless the advertisement “clearly and prominently identifies the brokerage that employs the broker or salesperson”, using the name in which the brokerage is registered. A broker of record’s name, a nickname or small print does not satisfy that rule. RECO Bulletin 5.1 adds that the descriptor “brokerage” or “real estate brokerage” should appear with the name.

28. Sophie Tran, a salesperson with Bayfront Realty Inc., represented buyers Carl and Janet Moore, whose purchase of 52 Quarry Hill Road closed last month. Sophie wants her brokerage to post on its social media page a photo of the house with the caption “Sold for $735,000 - congratulations!”. Both the house and the price can be identified from the post. Whose written consent must Sophie obtain before the post goes up?

1. The Moores, since they were her clients in the sale
2. The former seller, who set the original listing price
3. Both the Moores and the former seller of the house
4. Neither, because the sale has already closed

Section 12.1 of the General Regulation bars an advertisement that could identify specific real estate unless the owner consents in writing, and one that could reveal the contents of the agreement, including the price, unless “the parties to the agreement have consented in writing”. RECO Bulletin 5.4 states that after a transaction is completed, a buyer’s brokerage advertising a sold property with the price needs both the seller’s and the buyer’s consent. Consent from the Moores alone covers a post without price information, and a completed sale does not remove the requirement.

29. Greenfield Realty Inc. is updating the team page of its website. Next to each photo and registered name, the page will show a title for the individual. The brokerage wants to use only titles that section 12.1 of the General Regulation permits for a salesperson. Which title may the brokerage use?

1. Senior property sales associate
2. Registered real estate consultant
3. Real estate sales representative
4. Associate real estate broker-agent

Section 12.1 (4) (d) of the General Regulation requires a registrant who advertises to describe a salesperson with a listed term, and “real estate sales representative” is one of them. Section 12.1 (7) also prohibits a term that could reasonably be confused with a permitted term, which is the problem with an associate broker-agent title, since it suggests a broker. The consultant and associate titles are not among the listed terms. RECO Bulletin 5.2 gives the same list.

30. Imran Qureshi, a salesperson with Redstone Realty Inc., represents buyers Lucy and Peter Grant. They have made a written offer on a house listed by Kingsway Realty Brokerage Ltd. Kingsway’s seller representation agreement includes a clause giving Kingsway a bonus if the sale closes by a fixed date, and the clause could affect whether the offer is accepted. The seller has not yet responded to the offer. What does section 23 of the General Regulation require Kingsway to do?

1. Disclose the clause to the Grants after the seller accepts an offer
2. Disclose the clause to the seller, who already signed the agreement
3. Keep the clause confidential because remuneration terms are private
4. Disclose the clause to the Grants before any offer is accepted

Under section 23 (4) of the General Regulation, a brokerage whose agreement with a seller has remuneration terms that may affect whether an offer is accepted “shall disclose the existence of and the details of those terms” to any person who makes a written offer, as soon as possible after the offer is made and before any offer is accepted. Section 23 (5) also requires best efforts to obtain a written acknowledgement. Disclosure after acceptance comes too late, the seller already knows the clause, and the terms are not confidential from the buyers.

31. Mei-Ling Chow, a salesperson with Crestview Realty Inc., has been showing houses to Dev Anand. She now learns that Dev signed a buyer representation agreement with a salesperson at another brokerage, and the agreement has not expired. Dev asks her to write an offer on a house at 9 Harbour Street, and she would like to be paid by Dev. Under section 23 of the General Regulation, when may Mei-Ling charge or collect remuneration from Dev?

1. Once an offer she conveys in writing is accepted by the seller
2. When the other registrant agrees in writing to share the fee
3. When Dev agrees in writing to pay her remuneration
4. When her broker of record approves the fee in writing

Section 23 (2) of the General Regulation provides that, unless agreed to in writing by the buyer, a registrant shall not charge or collect remuneration from a buyer if the registrant “knows that there is an unexpired buyer representation agreement” between the buyer and another registrant. Section 23 (1) is expressly subject to subsection (2), so conveying an accepted written offer does not override it. Neither the other registrant’s agreement nor the broker of record’s approval replaces the buyer’s written agreement.

32. Hannah Lee, a salesperson with Midtown Realty Ltd., represents Victor Sokolov, who is buying unit 1204 in Harbourgate Condominium Corporation No. 88. On February 1, Victor’s lawyer asked the corporation for a status certificate and paid its fee. It is now February 28 and the corporation has not given the certificate, although Victor’s offer is conditional on reviewing it. Under section 76 of the Condominium Act, 1998, what is the legal effect of the corporation’s failure?

1. The offer is void because the status certificate was not delivered
2. It is deemed to state no default, increase or reserve assessment
3. Nothing changes, because the corporation may take as long as needed
4. It is deemed to certify that it has no outstanding legal actions

Section 76 (3) of the Condominium Act, 1998 requires the corporation to give the status certificate within 10 days after the request and payment of the fee. Under section 76 (5), a corporation that does not do so is deemed to have given a certificate stating that there has been no default in the payment of common expenses, no declared increase in common expenses and no assessments levied to increase the contribution to the reserve fund. The deeming does not cover legal actions, the Act does not void the offer, and the corporation cannot delay without consequence.

33. Frank Mancini, a salesperson with Oakridge Realty Inc., represents Teresa Boyle, who is selling a house at 3 Clearwater Road. Teresa tells Frank that, before she bought the house, tenants ran a cannabis grow operation in the basement. She asks whether the law requires her to disclose this to buyers and whether she could be sued if she does not. Frank is not a lawyer. What should Frank do?

1. Discourage Teresa from seeing a lawyer so the listing stays on track
2. Tell Teresa that she is safe if no buyer asks about the basement
3. Give Teresa his own legal opinion based on similar sales he handled
4. Advise Teresa to obtain legal advice on her disclosure obligations

Section 11 (1) of the Code of Ethics provides that a registrant “shall advise a person to obtain services from another person” if the registrant is not authorized by law to provide them, and section 11 (2) prohibits discouraging the person from seeking that service. A salesperson is not authorized to give legal advice, and RECO Bulletin 7.3 treats a former grow operation as a possible material fact that Frank must also raise with Teresa. Giving a personal opinion or suggesting that silence is safe would breach section 9 (2) as well.

34. Olivia Grant, a salesperson with Sterling Gate Realty Inc., represents Nathan Okafor, who is selling a townhouse at 27 Fernhill Lane. Nathan has completed a written statement for buyers describing the house’s age, renovations and past repairs, and Olivia knows about it. A buyer, Samir Gill, tells Olivia that he is interested in the townhouse. What does section 22.3 of the General Regulation require Olivia to do?

1. Give the statement to Samir after he submits an offer
2. Tell Samir the statement exists and give it on request
3. Withhold the statement because Nathan prepared it himself
4. Check every item in the statement before mentioning it

Section 22.3 of the General Regulation requires a salesperson who knows the seller has completed a written statement for buyers to “disclose the existence of the statement to every buyer who expresses an interest in the real estate” and, if requested, to make it available as soon as possible. The duty arises when the buyer shows interest, not when an offer is made, and it applies even though the seller prepared the statement. The section does not require Olivia to verify each item before telling the buyer that it exists.

35. Mohammed Ali, a salesperson with Lakeshore Realty Inc., is preparing a listing presentation for a two-storey house at 88 Birch Hollow Drive. The main floor has 1,020 square feet, the second floor has 340 square feet, and there is a finished basement of 340 square feet. Mohammed will list the house at $612,000 and will calculate the price per square foot on the above-grade area only, which excludes the basement. What is the listing price per square foot?

1. $45
2. $360
3. $600
4. $450

The price per square foot is the listing price divided by the area used. The above-grade area is 1,020 + 340 = 1,360 square feet, so $612,000 / 1,360 = $450. Dividing by 1,700 square feet, which wrongly includes the basement, gives $360, dividing by the main floor alone (1,020 square feet) gives $600, and $45 is a decimal slip.