COURSE ONE HUMBER REAL ESTATE
PROGRAM EXAM QUESTIONS WITH
CORRECT ANSWERS
Seller's Market - Correct Answers -Demand exceeds housing supply; sellers have
negotiating advantage; prices typically rise
Buyer's Market - Correct Answers -Housing supply exceeds demand; buyer have
negotiating advantage; pries typically fall
Balanced Market - Correct Answers -supply and demand are roughly equal; prices are
stable
What are the 6 career choices - Correct Answers -residential resale, new home, sales,
condos, rural/rec/agri, commercial, leasing/renting
Difference b/w Residential vs. Commercial Career - Correct Answers -While residential
is a popular choice, disruptions to personal life are a big consideration. Commercial is
typically limited to normal business days but, knowledge/skill level demands are higher
Listing - Correct Answers -a listing is an agreement with the brokerage, not with the
employed broker or salesperson. Duties in the listing agreement (also knows as the
seller representation agreement) are carried out by employed brokers and
salespersons.
Can remuneration be a percentage or a flat fee - Correct Answers -no, remuneration
can be a percentage of a sale price and/or a flat fee
remuneration sharing arrangements will always be the same for every salesperson at
varies brokerages - Correct Answers -false, remuneration sharing arrangements w/
salespersons various by brokerage
the remuneration split to the salesperson is commonly referred to as what - Correct
Answers -the commission split
, what are the three steps to calculating remuneration? - Correct Answers -distribution,
allocation, split
step one of remuneration calculation split distribution is - Correct Answers -
remuneration sharing between brokerages
What does CREA provide - Correct Answers -provide assistance and arbitration
services to provincial association/real estate boards
what does CREA oversee? - Correct Answers -oversees the REALTORS Code of
Ethics, trademarks and certifications marks (ex. REALTORS AND MLS)
Who does CREA set the rules for? - Correct Answers -sets the rules for MLS
step two of remuneration calculation split allocation is - Correct Answers -brokerages
divide commission between listing and selling portions (typically 50/50)
step three of remuneration calculation split the spilt is - Correct Answers -amount of
listing and/or selling portion paid to salesperson(s), e.g. 80/20
seller (vendor) - Correct Answers -offer the property for sale, selling is referred to as
divestiture
buyer (purchaser) - Correct Answers -acquires the property, and buying is also referred
to as acquisition
Landlord - Correct Answers -Lessor or Landlord leases the property TO the tenant
Tenant - Correct Answers -Lessee or Tenant leases the property FROM the landlord
Client - Correct Answers -A buuyer or seller that is represented by the brokerage. This
creates an agency relationship where the brokerage owes fiduciary duties to the client.
when a brokerage represents a buyer or seller they are referred to as ??? and
includes ??? - Correct Answers -referred to as a client and are owed fiduciary duties
what are fiduciary duties and who is owed them and why?? - Correct Answers -
Fiduciary duties include promoting the clients best interests, confidentiality and loyalty.
when a buyer or seller is represented by the brokerage they are clients; this creates an
agency relationship where the brokerage owes fiduciary duties to the client
the terms agency and representation are not the same - Correct Answers -FALSE, the
terms agency (taken from agency law) and representation (term used in REBBA) ARE
synonymous
PROGRAM EXAM QUESTIONS WITH
CORRECT ANSWERS
Seller's Market - Correct Answers -Demand exceeds housing supply; sellers have
negotiating advantage; prices typically rise
Buyer's Market - Correct Answers -Housing supply exceeds demand; buyer have
negotiating advantage; pries typically fall
Balanced Market - Correct Answers -supply and demand are roughly equal; prices are
stable
What are the 6 career choices - Correct Answers -residential resale, new home, sales,
condos, rural/rec/agri, commercial, leasing/renting
Difference b/w Residential vs. Commercial Career - Correct Answers -While residential
is a popular choice, disruptions to personal life are a big consideration. Commercial is
typically limited to normal business days but, knowledge/skill level demands are higher
Listing - Correct Answers -a listing is an agreement with the brokerage, not with the
employed broker or salesperson. Duties in the listing agreement (also knows as the
seller representation agreement) are carried out by employed brokers and
salespersons.
Can remuneration be a percentage or a flat fee - Correct Answers -no, remuneration
can be a percentage of a sale price and/or a flat fee
remuneration sharing arrangements will always be the same for every salesperson at
varies brokerages - Correct Answers -false, remuneration sharing arrangements w/
salespersons various by brokerage
the remuneration split to the salesperson is commonly referred to as what - Correct
Answers -the commission split
, what are the three steps to calculating remuneration? - Correct Answers -distribution,
allocation, split
step one of remuneration calculation split distribution is - Correct Answers -
remuneration sharing between brokerages
What does CREA provide - Correct Answers -provide assistance and arbitration
services to provincial association/real estate boards
what does CREA oversee? - Correct Answers -oversees the REALTORS Code of
Ethics, trademarks and certifications marks (ex. REALTORS AND MLS)
Who does CREA set the rules for? - Correct Answers -sets the rules for MLS
step two of remuneration calculation split allocation is - Correct Answers -brokerages
divide commission between listing and selling portions (typically 50/50)
step three of remuneration calculation split the spilt is - Correct Answers -amount of
listing and/or selling portion paid to salesperson(s), e.g. 80/20
seller (vendor) - Correct Answers -offer the property for sale, selling is referred to as
divestiture
buyer (purchaser) - Correct Answers -acquires the property, and buying is also referred
to as acquisition
Landlord - Correct Answers -Lessor or Landlord leases the property TO the tenant
Tenant - Correct Answers -Lessee or Tenant leases the property FROM the landlord
Client - Correct Answers -A buuyer or seller that is represented by the brokerage. This
creates an agency relationship where the brokerage owes fiduciary duties to the client.
when a brokerage represents a buyer or seller they are referred to as ??? and
includes ??? - Correct Answers -referred to as a client and are owed fiduciary duties
what are fiduciary duties and who is owed them and why?? - Correct Answers -
Fiduciary duties include promoting the clients best interests, confidentiality and loyalty.
when a buyer or seller is represented by the brokerage they are clients; this creates an
agency relationship where the brokerage owes fiduciary duties to the client
the terms agency and representation are not the same - Correct Answers -FALSE, the
terms agency (taken from agency law) and representation (term used in REBBA) ARE
synonymous
