🤝 Simulation Exam 2: Commercial Real Estate Transactions

1. Priya Nair, a salesperson with Harbourview Commercial Realty Inc., prepares a seller representation agreement for the owner of an industrial warehouse in Mississauga. The draft states the date the agreement takes effect and the date it expires. The expiry date appears only in a clause on page 6. What must Priya do with the expiry date before the owner signs?

1. Place it on the last page and have the broker of record initial it
2. Place it in a schedule and have two witnesses sign beside it
3. Display it prominently on page 1 and have the owner initial it
4. Leave it in the clause and have the owner initial that clause

Section 13.4 (1) of the General Regulation 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”. Initials from the broker of record, signatures from witnesses, or a date left on page 6 or in a schedule do not meet that requirement.

2. Marcus Delacroix, a salesperson with Lakeshore Commercial Brokerage Ltd., drafts a seller representation agreement for a retail plaza. The draft shows an expiry date of September 30, 2027 on page 1, and a later clause says the agreement renews until December 31, 2027 unless the seller gives notice. The seller has initialled next to the first date. What is the problem with the draft under the General Regulation?

1. The renewal clause must also be initialled by the broker of record
2. The two dates are acceptable if the seller initials both of them
3. The agreement must contain only one date on which it expires, not two
4. The renewal date must be moved to page 1 beside the first date

Section 13.4 (2) of the General Regulation requires the brokerage to “ensure that an agreement referred to in subsection (1) contains only one date on which the agreement expires”. Initials from the seller or the broker of record, or showing a second date on the first page, do not cure an agreement that has two expiry dates.

3. On Monday, Elena Rossi, a salesperson with Northgate Commercial Realty Ltd., agrees by telephone to represent the owner of an office building in London, Ontario, and the owner accepts the terms. Nothing has been written or signed. A prospective buyer plans to tour the building on Friday. By when must the brokerage reduce the agreement to writing, have it signed on its behalf and provide it to the owner for signature?

1. Before the transaction closes and the transfer is registered
2. Before the property is first advertised to the general public
3. Before the owner accepts an offer from a prospective buyer
4. As soon as possible and before any buyer makes an offer

Section 13.5 (1) of the General Regulation requires the brokerage to reduce an oral seller representation agreement to writing “as soon as possible after entering the agreement and before any buyer makes an offer”. The deadline is tied to the making of any buyer’s offer, not to advertising, to the owner’s acceptance of an offer, or to closing.

4. Jordan Whitfield, a salesperson with Eastgate Commercial Brokerage Inc., represents the seller of a small retail plaza. The plaza’s potential gross income is $500,000 a year, vacancy and collection loss is 4% of potential gross income, and operating expenses are $150,000 a year. The seller wants to see the value indicated by the income approach using a capitalization rate of 6%. Which value should Jordan present, rounded to the nearest dollar?

1. $5,166,667
2. $5,500,000
3. $5,833,333
4. $8,000,000

Effective gross income is $500,000 less 4% ($20,000), or $480,000. Net operating income is $480,000 less $150,000, or $330,000, and value is net operating income divided by the capitalization rate: $330,000 / 0.06 = $5,500,000. The figure $5,833,333 ignores vacancy, $5,166,667 deducts vacancy twice, and $8,000,000 capitalizes income before operating expenses.

5. Amara Okafor, a salesperson with Pinecrest Commercial Realty Inc., prepares marketing material for a seller’s office building listed at $6,000,000. Potential gross income is $720,000 a year, vacancy and collection loss is 5% of potential gross income, and operating expenses are $294,000 a year. Which capitalization rate does the listing price represent, based on net operating income?

1. 11.4%
2. 7.1%
3. 6.5%
4. 12.0%

Effective gross income is $720,000 less 5% ($36,000), or $684,000. Net operating income is $684,000 less $294,000, or $390,000, and the capitalization rate is net operating income divided by price: $390,000 / $6,000,000 = 6.5%. The rate of 7.1% ignores vacancy, 11.4% uses income before operating expenses, and 12.0% uses potential gross income.

6. Daniel Chen, a salesperson with Bayview Industrial Realty Ltd., helps an owner set an asking price for a 60,000-square-foot industrial building. The building is fully leased at a rent of $8.00 per square foot per year, and the landlord’s non-recoverable operating expenses are $36,000 a year. There is no vacancy. The owner wants the asking price to reflect a capitalization rate of 7.4%. What asking price results, rounded to the nearest dollar?

1. $5,513,514
2. $6,486,486
3. $6,000,000
4. $6,972,973

Income is 60,000 x $8.00 = $480,000, and net operating income is $480,000 less $36,000, or $444,000. Value is $444,000 / 0.074 = $6,000,000. The figure $6,486,486 capitalizes income before expenses, $6,972,973 adds the expenses instead of deducting them, and $5,513,514 deducts the expenses twice.

7. Sofia Marin, a salesperson with Cornerstone Commercial Realty Inc., lists a former machine shop for its owner, Greywater Holdings Ltd. When asked about the condition of the land, the owner’s manager says by telephone, “The ground is fine and there has never been a spill.” Sofia has no reports or records about the site. What should Sofia do to meet her duty to determine the material facts?

1. Research the site’s history and request supporting documents or reports
2. Leave environmental questions for the buyer to raise in due diligence
3. Have the manager sign a short statement and treat the matter as closed
4. Rely on the manager’s statement because the owner knows the site

Section 22.1 (1) (a) of the General Regulation requires a salesperson who represents a client to “take reasonable steps to determine the material facts”. RECO Bulletin 7.3 says the reasonable steps are “not met by simply accepting the seller’s verbal representations” and that “Some research, verification, and supporting documentation will be necessary”. A signed statement does not replace verification, and leaving the question to the buyer ignores the duty owed to the seller.

8. While preparing the file for the sale of a warehouse, Hannah Brooks, a salesperson with Lakeshore Commercial Brokerage Ltd., learns that a rail spur beside the property will be extended and will increase train traffic. The seller, Mr. Osei, has not mentioned it. Hannah has determined that this is a material fact. What must she do NEXT?

1. Wait until a buyer makes an offer and then disclose it to that buyer
2. Tell Mr. Osei as soon as possible and advise him to consider its effect
3. Tell Mr. Osei if he later asks her about the nearby rail lines
4. Obtain Mr. Osei’s written acknowledgement before telling him about it

Section 22.1 (1) of the General Regulation requires the salesperson to “disclose the material facts to the client as soon as possible after the determination” and to advise the client to consider whether the facts affect the decision to dispose of the interest. The acknowledgement under section 22.1 (2) confirms that the disclosure and advice were received, so it follows them and cannot come first. Waiting for an offer or for a question from the seller does not meet the duty.

9. Kevin Adeyemi, a salesperson with Northgate Commercial Realty Ltd., has disclosed to his seller client, Brightfield Properties Inc., that the site has a history of flooding. Kevin advised the client to consider whether the flooding affects its decision to sell and asked it to sign a written acknowledgement. The client’s president declines to sign. What is Kevin’s position under the General Regulation?

1. He has met the duty, having disclosed, advised and made best efforts
2. He must stop acting for the client until the acknowledgement is signed
3. He must report the refusal to RECO before the listing can continue
4. His disclosure has no effect and must be repeated to the client’s lawyer

Section 22.1 (2) of the General Regulation requires the salesperson to “make best efforts to obtain a written acknowledgement from the client” and, only “if the client makes the acknowledgement”, to provide the client with a copy. A refusal does not undo the disclosure and advice already given under subsection (1), does not require Kevin to stop acting, and is not a step that section 22.1 requires to be reported to RECO.

10. Linda Park, a salesperson with Harbourview Commercial Realty Inc., has a listing for an operating factory. A prospective buyer’s engineers want to walk through the plant on Saturday, when no registrant can be present with them. The owner, Mr. Tran, has only said by telephone that this would be fine. What does section 22.5 of the General Regulation require before the engineers are given access?

1. Mr. Tran must consent in writing to the unaccompanied visit
2. The broker of record must approve the visit by telephone
3. The engineers must give Linda a certificate of insurance first
4. The buyer’s lawyer must give the owner a letter of undertaking

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 with the person or “the owner of the real estate has consented in writing”. Mr. Tran’s telephone remark is not written consent. A letter from the buyer’s lawyer, approval from the broker of record, or insurance documents are not the conditions set by section 22.5.

11. A salesperson with Cornerstone Commercial Realty Inc. is arranging site visits to a vacant industrial building for several prospective buyers and their advisers. The owner has not given any written consent for unaccompanied visits. Which visit would NOT comply with section 22.5 of the General Regulation?

1. A buyer’s appraiser tours the building with the salesperson present
2. A buyer’s contractor is lent a key and tours the building alone
3. A buyer and its lawyer tour the building with the broker of record
4. A buyer’s lender tours the building with another registrant present

Section 22.5 of the General Regulation allows a registrant to provide access to real estate only if a registrant is present with the person or the owner has consented in writing. The contractor was lent a key and toured alone with no written consent from the owner. In each of the other visits a registrant, the salesperson, another registrant, or the broker of record, is present with the visitors.

12. Rachel Kim, a salesperson with Lakeshore Commercial Brokerage Ltd., represents the owner of a former dry-cleaning site. The owner asks Rachel to confirm in writing that the soil is free of contamination so that buyers will stop asking questions. Rachel has no training in assessing soil conditions. What should Rachel do?

1. Give her opinion, based on what she has seen on earlier sales
2. Discourage the owner from hiring a consultant to avoid delays
3. Advise the owner to obtain an assessment from a qualified consultant
4. Provide the letter once the owner signs a release in her favour

Section 11 (1) of the Code of Ethics requires a registrant to “advise a person to obtain services from another person” if the registrant is not able to provide the services with reasonable knowledge, skill, judgment and competence. Section 11 (2) also bars discouraging the person from seeking those services, and section 9 (2) requires reasonable knowledge, skill and judgment when giving opinions. A release from the owner does not make an unqualified opinion competent.

13. Victor Almeida, a salesperson with Pinecrest Commercial Realty Inc., lists an industrial building for Delta Metals Corp. Victor wants to recommend Clearwater Environmental Ltd. to prepare the environmental report for buyers. Victor owns 40% of Clearwater Environmental Ltd. and has not told the seller. Which course of action BEST complies with the Code of Ethics before Victor continues to act for Delta Metals Corp. and refers it to that firm?

1. Disclose the interest to his broker of record, who may approve the referral
2. Disclose the interest, recommend independent advice and obtain written consent
3. Disclose the interest orally and continue if the seller raises no objection
4. Withdraw from the listing, because no consent can resolve this type of conflict

Section 13 of the Code of Ethics bars services to a client where the registrant’s interests conflict or may conflict unless the registrant has disclosed the relationship, “advised the client or prospective client to seek independent professional advice”, taken reasonable steps to ensure the client understands the conflict, and obtained consent in writing. Oral disclosure is not enough, approval by the broker of record is not the consent required, and the section allows services to continue with written consent, so withdrawal is not required.

14. Nadia Haddad, a salesperson with Eastgate Commercial Brokerage Inc., is under pressure to close deals this month. She is tempted to advise Amir, the owner of a vacant retail building, to cut his asking price sharply so that the building sells quickly, although her research shows that it is priced fairly. Which duty in the Code of Ethics must guide Nadia’s advice to Amir?

1. Promote and protect the best interests of Amir as her client
2. Maximize the revenue earned by her brokerage this month
3. Treat the seller and prospective buyers equally as customers
4. Avoid advising on price so that the seller decides alone

Section 8 (1) of the Code of Ethics provides that a registrant that represents a client “shall promote and protect the best interests of the registrant’s clients”. The timing of a commission or the brokerage’s monthly revenue is not the test, and the “customer” relationship belonged to the former regime and no longer exists. Section 9 (2) requires competent advice, so avoiding advice on price would also fall short.

15. Tanya Boucher, a salesperson with Northgate Commercial Realty Ltd., drafts a seller representation agreement for a retail building. The draft sets out the effective and expiry dates, the services the brokerage will provide, how the brokerage’s remuneration is determined and paid, and the termination terms. It says nothing about any other brokerage that finds a buyer. Which item is missing under the General Regulation?

1. The seller’s reasons for selling and the preferred closing date
2. How any remuneration payable to another brokerage is determined
3. The assessed value of the building for property tax purposes
4. The list of prospective buyers who have already toured the building

Section 13.4 (1) of the General Regulation requires an agreement with a seller to set out the method for determining the remuneration payable to the brokerage and, “in the case of an agreement with a seller, the amount of any remuneration payable to any other brokerage”. The seller’s reasons, the assessed value and a list of past visitors are not items the Regulation requires in the agreement.

16. Oscar Lindqvist, a salesperson with Cornerstone Commercial Realty Inc., meets the owner of a small office building at the brokerage, and both sign the written seller representation agreement. Oscar says the brokerage will mail the owner a copy once a buyer is found, to keep the file tidy. Is this acceptable under the General Regulation?

1. Yes, a copy is needed once a buyer has made an offer
2. Yes, a copy is needed if the owner asks for one in writing
3. No, the owner must receive a copy within five business days
4. No, the owner must be immediately given a copy of the agreement

Section 13.7 of the General Regulation requires the brokerage to ensure that “each of the other persons is immediately given a copy of the agreement” when a written agreement in connection with a trade in real estate is entered into. The Regulation sets no wait for an offer, for a written request, or for a five-business-day period.

17. Mei Tanaka, a salesperson with Lakeshore Commercial Brokerage Ltd., lists a vacant lot in an industrial area for Strathmore Land Inc. While preparing the sale file, Mei sees that the municipal zoning by-law may not permit the outdoor storage use that the seller’s marketing sheet promotes. Mei is neither a lawyer nor a planner. What is the BEST course of action?

1. Leave zoning to the buyer, since buyers are the ones affected
2. Delete the storage claim and do not tell the seller about it
3. Confirm the use is permitted, based on similar lots she has sold
4. Disclose it as a possible material fact and urge professional advice

RECO Bulletin 7.3 lists “Zoning by-laws, established by the municipality, region or other governmental agency, impacting the legal use of the property” among items often considered material facts, so section 22.1 (1) requires Mei to disclose it to her client and advise the client to consider it. Because she cannot give a legal opinion on permitted use competently, section 11 (1) of the Code of Ethics requires her to advise obtaining services from a qualified person. Staying silent and guessing both fall short of those duties.

18. Sam Pereira, a salesperson with Pinecrest Commercial Realty Inc., lists five hectares of vacant land for development as a distribution centre. The land lies in an area that the municipality has designated as a site plan control area. The seller asks Sam to put “building approvals assured” in the marketing material. What should Sam do?

1. Include it, since zoning approval makes site plan approval automatic
2. Include it, because the seller gave written permission to use it
3. Replace it with a note that the committee of adjustment approves plans
4. Omit it, flag site plan control as a material fact and urge advice

Under section 41 (4) of the Planning Act, “No person shall undertake any development in an area designated under subsection (2)” until the required plans or drawings are approved, so neither the seller nor Sam can assure approvals, and zoning does not make that approval automatic. Section 5 (a) of the Code of Ethics requires best efforts to ensure that representations are accurate and not misleading, and the seller’s written permission does not change that duty. Site plan control is a possible material fact to disclose to the client under section 22.1 of the General Regulation, with advice to consult a qualified professional. The committee of adjustment is not the body named in section 41 (4) to approve plans.

19. Gabriel Moreau, a salesperson with Harbourview Commercial Realty Inc., lists a strip mall whose tenants all have five-year leases. The seller asks Gabriel to print “Guaranteed 8% annual return” in the sale brochure. Gabriel has the leases and past statements but cannot know future vacancies, expenses or market conditions. What should Gabriel do?

1. Include it, if the seller signs a statement accepting responsibility
2. Include it, with a footnote that returns may change in later years
3. Give the guarantee orally to serious buyers and keep it out of print
4. Decline to promise a return and present verified historical income

Section 5 (a) of the Code of Ethics requires a registrant to “make best efforts to ensure that any representations are accurate and are not misleading”, and section 9 (2) requires reasonable knowledge, skill, judgment and competence in any information given. A guaranteed return depends on future vacancies, expenses and market conditions that Gabriel cannot verify, so he should present only verified historical income. A signed statement from the seller, a footnote or an oral promise to buyers does not make the guarantee accurate.

20. Priya Raman, a salesperson at Harbourfront Commercial Realty Inc., agrees on the phone to represent Marcus Delgado in buying a small industrial building. Nothing has been signed, and Marcus plans to make an offer on Friday. What must the brokerage do?

1. Reduce the agreement to writing before Marcus offers on Friday
2. Reduce the agreement to writing once the seller accepts Marcus's offer
3. Reduce the agreement to writing when Marcus's lawyer asks for it
4. Reduce the agreement to writing when the transaction closes next month

Section 13.6 of the General Regulation requires a brokerage that has an oral buyer representation agreement to reduce it to writing “as soon as possible after entering the agreement and before the buyer makes an offer”. It must also have the agreement signed on behalf of the brokerage and give it to the buyer for signature. Waiting for an accepted offer, for a request from Marcus's lawyer or for closing would all be too late.

21. Lakeshore Commercial Brokerage Ltd. is preparing a written buyer representation agreement for Hana Petrov, who is looking for a retail unit. The broker of record asks the salesperson, Devon Clarke, what the General Regulation requires. Which requirement applies to the expiry date of the agreement?

1. It must appear on the last page, next to the brokerage's signature
2. It may be left out if the agreement renews automatically each year
3. It must appear on the first page, and Hana must initial next to it
4. It must be repeated for each service the brokerage will provide

Section 13.4 of the General Regulation requires the expiry date to be “displayed prominently on the first page of the agreement” and requires the buyer to have initialled the agreement next to it. The agreement must also contain only one date on which it expires, so it cannot be repeated for each service. The expiry date is one of the items that must be set out, so it cannot be left out for an automatic renewal.

22. Daniela Ferraro signs a buyer representation agreement with Northgate Realty Ltd., Brokerage, for a search for an office building. At the signing, she asks when she will receive a copy of the signed agreement. When must the brokerage ensure that she is given a copy?

1. Immediately, as soon as both parties have signed it
2. After she makes her first written offer on a property
3. Within five business days after both parties have signed it
4. On her written request, made within ten days of signing

Section 13.7 of the General Regulation provides that, when a brokerage and another person enter into a written agreement in connection with a trade in real estate, the brokerage “shall ensure that each of the other persons is immediately given a copy of the agreement”. A five-business-day delay, a wait until the first offer or a written request from the buyer is not what the section allows.

23. Tomas Wright, represented by salesperson Amira Haidari, wants to buy a retail plaza that was a gas station thirty years ago. He asks whether the soil could be contaminated and wants his offer to protect him. Amira has no environmental training. What should she do?

1. Advise Tomas to hire an environmental consultant and add a condition
2. Give Tomas her own estimate of the contamination risk after a visit to the site
3. Tell Tomas to rely on the seller's verbal assurance that the soil is clean
4. Advise Tomas to leave out the conditions so the offer looks stronger

Section 11 (1) of the Code of Ethics requires a registrant to “advise a person to obtain services from another person” if the registrant cannot provide them with reasonable knowledge, skill, judgment and competence. An environmental assessment is work for a qualified consultant, and a due diligence condition lets Tomas obtain it before he is bound. A personal estimate, a verbal assurance or dropping the condition would not promote and protect his best interests under section 8 of the Code of Ethics.

24. Ibrahim Sorel is buying a commercial unit through salesperson Karen Lindqvist. He says that legal fees are high and asks whether he really needs a lawyer to review the conditions of his offer. Karen is not authorized to give legal advice. How should she respond?

1. Tell Ibrahim a lawyer is unnecessary because the offer form is standardized
2. Advise Ibrahim to obtain legal advice and never discourage him from it
3. Offer to review the legal wording of the conditions for Ibrahim herself
4. Suggest that Ibrahim see a lawyer after the seller accepts the offer

Section 11 (1) of the Code of Ethics requires a registrant to advise a person to obtain services from another person when the registrant is “not authorized by law to provide the services”, and section 11 (2) prohibits discouraging the person from seeking them. Karen cannot give legal advice herself, and a standard form does not remove the need for it. Advice obtained only after acceptance would come too late, because the offer would already be binding.

25. Salesperson Luca Moretti represents Olivia Grant, who plans to buy a warehouse and install heavy rooftop equipment. Olivia asks whether the roof structure can carry the load. The listing describes the building as sound. What is Luca's BEST step?

1. Confirm that the roof can carry the load because the listing says sound
2. Estimate the roof capacity himself from the age and size of the building
3. Advise Olivia to retain a professional engineer after the sale has closed
4. Advise Olivia to retain a professional engineer to assess the roof structure

Luca cannot assess a roof structure with reasonable knowledge, skill, judgment and competence, so section 11 (1) of the Code of Ethics requires him to advise Olivia to obtain that service from another person, here an engineer. Section 9 (2) requires “reasonable knowledge, skill, judgment and competence in providing opinions, advice, assistance or information to any person”, which rules out guessing from a general listing description. An engineer retained after closing would come too late to protect Olivia before she is bound.

26. Salesperson Nadia Roy acts for buyer Colin Mercer. At 4:30 p.m. on Friday, the listing brokerage emails a signed written counter-offer on an office building. Colin has given no written directions about offers, and Nadia would prefer to discuss it at her Monday meeting with him. What does the General Regulation require?

1. Convey it to Colin when his lawyer has reviewed the terms
2. Convey it to Colin once her broker of record has approved it
3. Convey it to Colin at their meeting scheduled for next Monday
4. Convey it to Colin as soon as possible after receiving it

Section 22.10 (1) of the General Regulation provides that a registrant “shall convey any written offer received by the registrant to the registrant’s client as soon as possible after receiving the offer”. The section does not allow Nadia to wait for a meeting, an approval by the broker of record or a lawyer's review before conveying the counter-offer, and Colin has given no written direction under subsection (4) that changes this.

27. Salesperson Brian Okafor represents a buyer, Sunita Rao, who has an offer outstanding on a retail building. Brian will be on a long flight on Thursday, when the seller's written counter-offer is expected to arrive. What does the General Regulation require Brian to do before he leaves?

1. Ask the seller's brokerage to hold its response until he is back
2. Establish a method to receive the offer and convey it to Sunita
3. Withdraw the offer so that nothing can arrive while he is away
4. Ask Sunita to check the brokerage's inbox herself during the flight

Section 22.10 (2) of the General Regulation requires a salesperson to “establish a method of ensuring that the following steps are taken” if he is not available when a written offer is submitted: another person receives the offer on his behalf, and it is conveyed to the client as soon as possible. Asking the seller's brokerage to hold its counter-offer, relying on the client to monitor an inbox or withdrawing the offer does not meet that duty.

28. Salesperson Elena Voss represents buyer Raj Singh. The listing brokerage sends a written counter-offer on an industrial unit that offers the buyer's brokerage a lower commission than usual. Elena is annoyed and wonders whether she must still convey it. What is the correct approach?

1. Convey it to Raj as soon as possible, despite the lower commission
2. Hold it until the listing brokerage improves the commission it offers
3. Convey it after Raj agrees to cover the commission shortfall
4. Convey the price and closing date, and leave out the commission terms

Section 22.10 (3) of the General Regulation provides that the duty to convey a written offer applies regardless of “the nature of any arrangements for remuneration”, as well as the identity of the person making the offer and the contents of the offer. Elena must therefore convey the whole counter-offer to Raj as soon as possible, and she may not hold it back or edit it because the commission is lower.

29. Karim Haddad, a salesperson, represents buyer Leah Brooks under an accepted agreement on a retail building. The agreement includes a condition for the seller's benefit, and the listing brokerage sends Karim the seller's signed written waiver of that condition. What must Karim do with the waiver?

1. Hold it for a few days until the closing date is closer
2. Convey it to Leah if the price changes as a result
3. Convey it to Leah as soon as possible after receiving it
4. Keep it on file without conveying it, since Leah is not affected

Section 22.10 (5) of the General Regulation extends the duty in subsections (1) to (4) to “written waivers of conditions in agreements that relate to interests in real estate”. Karim must therefore convey the waiver to his client as soon as possible, whether or not the price changes and whether or not he thinks she is affected.

30. Mei Tan makes a written offer on an office building through salesperson Jordan Blake. The listing brokerage, which has a seller representation agreement, receives two other written offers. What must the listing brokerage communicate to Mei without any direction from the seller?

1. The price in the highest competing written offer
2. The conditions of the other competing offers
3. The names of the persons who made the other offers
4. The number of competing written offers received

Section 22.7 (1) (a) of the General Regulation requires the listing brokerage to communicate the number of competing written offers to every person making one. Under clause (1) (b) it shares the substance of the offers, such as the price or conditions, only “if the seller directs”, and under subsection (3) the information shared must not identify the person making an offer, so names are never shared.

31. A brokerage represents the seller of a commercial condominium unit and receives three written offers, one of them made through salesperson Priya Nair. The seller directs the brokerage to share only the price and closing date of each offer with the offerors. What may the brokerage do?

1. Share nothing, because a seller cannot direct partial sharing of offers
2. Share the full terms of the three offers, since the seller directed sharing
3. Share the price, closing date and the names of the offerors, as directed
4. Share the price and closing date, without identifying any offeror

Section 22.7 (2) of the General Regulation provides that “a seller may direct that only parts of the competing written offers be shared”, so the brokerage follows the seller's direction and shares only the price and closing date. Under subsection (3), the information shared must not include any personal information of a person making an offer or anything else that would identify that person.

32. Seaway Commercial Realty Inc., the listing brokerage for a retail building, receives a $75,000 deposit cheque in trust from buyer Dev Anand after the seller accepts his offer. The offer has a financing condition that runs for 15 business days, and the office manager suggests keeping the cheque in the office safe until the condition is waived. What must the brokerage do with the cheque?

1. Deposit it in its trust account within 5 business days
2. Keep it in the office safe until the condition is waived
3. Deposit it in its trust account within 15 business days
4. Give the cheque to the seller to hold until closing day

Section 17 (1) of the General Regulation requires a brokerage that receives money in trust to “deposit the amount in the trust account maintained under section 27 of the Act within five business days”. The 15-business-day financing condition does not extend that period, and the Regulation does not allow the cheque to wait in the office safe until the condition is waived. Handing the cheque to the seller would release trust money before closing instead of depositing it as required.

33. Lakeshore Commercial Brokerage Ltd. receives a buyer's deposit cheque. The office administrator is counting business days to meet the trust deposit deadline in the General Regulation and asks which of these dates is NOT counted as a business day. Which date is it?

1. Friday, March 5, 2027
2. Monday, March 1, 2027
3. Wednesday, March 3, 2027
4. Saturday, March 6, 2027

Section 17 (2) of the General Regulation defines a business day as a day that is not a Saturday or a holiday. Saturday, March 6, 2027 is therefore not counted. The Monday, Wednesday and Friday dates are ordinary weekdays that are not holidays, so they count.

34. 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.

35. Hugo Pelletier buys a commercial condominium unit relying on a status certificate that stated no assessments had been levied against the unit. After closing, the corporation claims that a special assessment was levied before the certificate's date and asks Hugo to pay it. What is the effect of the status certificate?

1. It binds the corporation, as of its date, for a purchaser who relied on it
2. It does not bind the corporation, which may correct it after closing
3. It binds the corporation for a purchaser until 30 days after its date
4. It binds the corporation if Hugo's lawyer also approved the certificate

Section 76 (6) of the Condominium Act, 1998 provides that the status certificate “binds the corporation, as of the date it is given or deemed to have been given”, as against a purchaser or mortgagee of a unit who relies on it. The Act requires no lawyer's approval, allows no correction after closing and sets no 30-day limit on that effect.