Real Estate Broker Licensing Exam
(Ontario) Practice Questions And
Correct Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1. What is the primary role of a real estate broker in Ontario?
a) Provide legal advice to clients
b) Facilitate real estate transactions between buyers and sellers
c) Determine the market value of a property for tax purposes
d) Represent the government in property disputes
Rationale: Real estate brokers facilitate transactions and ensure
compliance with real estate laws but do not provide legal advice.
2. Which legislation governs real estate transactions in Ontario?
a) Ontario Business Corporations Act
b) Residential Tenancies Act
, c) Real Estate and Business Brokers Act, 2002 (REBBA)
d) Land Titles Act
Rationale: REBBA 2002 sets out rules for real estate professionals
and consumer protection in Ontario.
3. A salesperson wants to become a broker in Ontario. What is required?
a) 1 year of experience as a salesperson
b) No prior experience is required
c) Completion of the Broker pre-registration education program and
required experience
d) Only registration with the Real Estate Council of Ontario
Rationale: To become a broker, one must complete the required
education and meet experience requirements.
4. What is a fiduciary duty of a real estate broker?
a) Marketing properties aggressively
b) Acting in the best interest of the client
c) Ensuring the property sells at the highest price possible
d) Reducing commission fees for clients
Rationale: Fiduciary duty requires acting in good faith and in the
client’s best interests.
5. In Ontario, the deposit in a real estate transaction is generally held by:
a) The seller
b) The brokerage in a trust account
c) The municipality
, d) The mortgage lender
Rationale: Deposits must be held in a trust account to protect both
parties and comply with REBBA regulations.
6. Which of the following is considered a latent defect?
a) Chipped paint
b) Broken window lock
c) Hidden structural damage
d) Overgrown lawn
Rationale: Latent defects are not visible upon ordinary inspection
and may affect property value or safety.
7. A multiple listing service (MLS) is used primarily to:
a) Determine tax rates
b) Record property deeds
c) Share property listings among brokers to increase market
exposure
d) Establish zoning regulations
Rationale: MLS allows brokers to market properties widely and
facilitate cooperative sales.
8. What is the primary purpose of an Agreement of Purchase and Sale?
a) Provide financing to the buyer
b) Legally outline the terms and conditions of the transaction
c) Transfer title at closing
d) Appraise the property
, Rationale: This agreement sets out the rights and obligations of both
parties.
9. Which type of listing agreement guarantees the broker a commission
regardless of who sells the property?
a) Open listing
b) Exclusive agency listing
c) Exclusive right-to-sell listing
d) Multiple listing agreement
Rationale: Exclusive right-to-sell ensures the broker is paid even if the
owner finds a buyer.
10. Under REBBA, what must a broker disclose to a prospective
buyer?
a) Only defects visible during inspection
b) Any material latent defects and known issues
c) Personal opinions about the neighborhood
d) Past sales prices of unrelated properties
Rationale: Brokers must disclose known material facts that could
affect the buyer’s decision.
11. What does “dual agency” refer to in real estate?
a) Representing two sellers simultaneously
b) Two brokers splitting a commission
c) Representing both the buyer and the seller in the same transaction
d) A broker acting as a mortgage agent
(Ontario) Practice Questions And
Correct Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1. What is the primary role of a real estate broker in Ontario?
a) Provide legal advice to clients
b) Facilitate real estate transactions between buyers and sellers
c) Determine the market value of a property for tax purposes
d) Represent the government in property disputes
Rationale: Real estate brokers facilitate transactions and ensure
compliance with real estate laws but do not provide legal advice.
2. Which legislation governs real estate transactions in Ontario?
a) Ontario Business Corporations Act
b) Residential Tenancies Act
, c) Real Estate and Business Brokers Act, 2002 (REBBA)
d) Land Titles Act
Rationale: REBBA 2002 sets out rules for real estate professionals
and consumer protection in Ontario.
3. A salesperson wants to become a broker in Ontario. What is required?
a) 1 year of experience as a salesperson
b) No prior experience is required
c) Completion of the Broker pre-registration education program and
required experience
d) Only registration with the Real Estate Council of Ontario
Rationale: To become a broker, one must complete the required
education and meet experience requirements.
4. What is a fiduciary duty of a real estate broker?
a) Marketing properties aggressively
b) Acting in the best interest of the client
c) Ensuring the property sells at the highest price possible
d) Reducing commission fees for clients
Rationale: Fiduciary duty requires acting in good faith and in the
client’s best interests.
5. In Ontario, the deposit in a real estate transaction is generally held by:
a) The seller
b) The brokerage in a trust account
c) The municipality
, d) The mortgage lender
Rationale: Deposits must be held in a trust account to protect both
parties and comply with REBBA regulations.
6. Which of the following is considered a latent defect?
a) Chipped paint
b) Broken window lock
c) Hidden structural damage
d) Overgrown lawn
Rationale: Latent defects are not visible upon ordinary inspection
and may affect property value or safety.
7. A multiple listing service (MLS) is used primarily to:
a) Determine tax rates
b) Record property deeds
c) Share property listings among brokers to increase market
exposure
d) Establish zoning regulations
Rationale: MLS allows brokers to market properties widely and
facilitate cooperative sales.
8. What is the primary purpose of an Agreement of Purchase and Sale?
a) Provide financing to the buyer
b) Legally outline the terms and conditions of the transaction
c) Transfer title at closing
d) Appraise the property
, Rationale: This agreement sets out the rights and obligations of both
parties.
9. Which type of listing agreement guarantees the broker a commission
regardless of who sells the property?
a) Open listing
b) Exclusive agency listing
c) Exclusive right-to-sell listing
d) Multiple listing agreement
Rationale: Exclusive right-to-sell ensures the broker is paid even if the
owner finds a buyer.
10. Under REBBA, what must a broker disclose to a prospective
buyer?
a) Only defects visible during inspection
b) Any material latent defects and known issues
c) Personal opinions about the neighborhood
d) Past sales prices of unrelated properties
Rationale: Brokers must disclose known material facts that could
affect the buyer’s decision.
11. What does “dual agency” refer to in real estate?
a) Representing two sellers simultaneously
b) Two brokers splitting a commission
c) Representing both the buyer and the seller in the same transaction
d) A broker acting as a mortgage agent
