HUMBER REAL ESTATE - COURSE 1,
MODULE 2 EXAM QUESTIONS AND
ANSWERS
What are the 2 types of offices a brokerage can have? - Correct Answers -- Main
brokerage office
- Branch office
When a brokerage has a property for sale, what is the brokerage identified as? - Correct
Answers -The listing brokerage
When a brokerage is working with a buyer, what is the brokerage identified as? -
Correct Answers -The co-operating brokerage
OR
The buyer's brokerage (when it's a private sale, because the buyer's is the only
brokerage listed in the agreement as the seller doesn't have one)
Does every branch office require a Broker of Record? - Correct Answers -No.
Only 1 Broker of Record is required for the main office only. Each branch office is
assigned its own Branch Manager to provide supervision, compliance with REBBA &
handle all record management.
The term 'Seller' (used by REBBA) is synonymous with the term '__________' which
may be used in other legislation. - Correct Answers -Vendor
The term 'Buyer' (used by REBBA) is synonymous with the term '__________' which
may be used in other legislation. - Correct Answers -Purchaser
What is another term for 'Landlord'? - Correct Answers -Lessor
What is another term for 'Tenant'? - Correct Answers -Lessee
"A borrower __________ the mortgage and the lender __________ the financing." -
Correct Answers -gives
, Instead of the term 'Mortgage' (which is used under the Registry Act), what term is used
under the Land Titles Act? - Correct Answers -Charge
What is another term for 'Lender' under the Registry Act? - Correct Answers -Mortgagee
What is another term for 'Borrower' under the Registry Act? - Correct Answers -
Mortgagor
What is another term for 'Borrower' under the Land Titles Act? - Correct Answers -
Chargor
What is another term for 'Lender' under the Land Titles Act? - Correct Answers -
Chargee
What word, under REBBA, is used to reference the selling aspect of a real estate
transaction? - Correct Answers -Divestiture
What word, under REBBA, is used to reference the purchasing aspect of a real estate
transaction? - Correct Answers -Acquisition
What is the definition of a 'Landlord'? - Correct Answers -A person or other entity (i.e. a
corporation) that owns a property that is leased to another person, rather than being
occupied by the owner.
Describe a client relationship in reference to a brokerage. - Correct Answers -The term
representation implies an agency relationship with the brokerage and this places both
regulatory (REBBA) & fiduciary obligation on the brokerage. The brokerage is required
to be loyal, not disclose confidential information and promote & protect the seller or
buyer's best interests.
Describe a customer relationship in reference to a brokerage. - Correct Answers -A
brokerage can provide services to a seller or buyer rather than representing the party.
This doesn't require the same level of obligation as a client relationship.
A brokerage must treat the customer with fairness, honesty & integrity and ensure
information provided is accurate.
BUT ... No fiduciary obligations are owed when providing services (such as loyalty,
confidentiality or promoting their best interests).
What is the name of the agreement when a brokerage represents a buyer or seller? -
Correct Answers -Representation Agreement (AKA listing agreement or buyer
agreement)
What is the name of the agreement when a brokerage provides services to a customer?
- Correct Answers -Customer Service Agreement (which is non-exclusive)
MODULE 2 EXAM QUESTIONS AND
ANSWERS
What are the 2 types of offices a brokerage can have? - Correct Answers -- Main
brokerage office
- Branch office
When a brokerage has a property for sale, what is the brokerage identified as? - Correct
Answers -The listing brokerage
When a brokerage is working with a buyer, what is the brokerage identified as? -
Correct Answers -The co-operating brokerage
OR
The buyer's brokerage (when it's a private sale, because the buyer's is the only
brokerage listed in the agreement as the seller doesn't have one)
Does every branch office require a Broker of Record? - Correct Answers -No.
Only 1 Broker of Record is required for the main office only. Each branch office is
assigned its own Branch Manager to provide supervision, compliance with REBBA &
handle all record management.
The term 'Seller' (used by REBBA) is synonymous with the term '__________' which
may be used in other legislation. - Correct Answers -Vendor
The term 'Buyer' (used by REBBA) is synonymous with the term '__________' which
may be used in other legislation. - Correct Answers -Purchaser
What is another term for 'Landlord'? - Correct Answers -Lessor
What is another term for 'Tenant'? - Correct Answers -Lessee
"A borrower __________ the mortgage and the lender __________ the financing." -
Correct Answers -gives
, Instead of the term 'Mortgage' (which is used under the Registry Act), what term is used
under the Land Titles Act? - Correct Answers -Charge
What is another term for 'Lender' under the Registry Act? - Correct Answers -Mortgagee
What is another term for 'Borrower' under the Registry Act? - Correct Answers -
Mortgagor
What is another term for 'Borrower' under the Land Titles Act? - Correct Answers -
Chargor
What is another term for 'Lender' under the Land Titles Act? - Correct Answers -
Chargee
What word, under REBBA, is used to reference the selling aspect of a real estate
transaction? - Correct Answers -Divestiture
What word, under REBBA, is used to reference the purchasing aspect of a real estate
transaction? - Correct Answers -Acquisition
What is the definition of a 'Landlord'? - Correct Answers -A person or other entity (i.e. a
corporation) that owns a property that is leased to another person, rather than being
occupied by the owner.
Describe a client relationship in reference to a brokerage. - Correct Answers -The term
representation implies an agency relationship with the brokerage and this places both
regulatory (REBBA) & fiduciary obligation on the brokerage. The brokerage is required
to be loyal, not disclose confidential information and promote & protect the seller or
buyer's best interests.
Describe a customer relationship in reference to a brokerage. - Correct Answers -A
brokerage can provide services to a seller or buyer rather than representing the party.
This doesn't require the same level of obligation as a client relationship.
A brokerage must treat the customer with fairness, honesty & integrity and ensure
information provided is accurate.
BUT ... No fiduciary obligations are owed when providing services (such as loyalty,
confidentiality or promoting their best interests).
What is the name of the agreement when a brokerage represents a buyer or seller? -
Correct Answers -Representation Agreement (AKA listing agreement or buyer
agreement)
What is the name of the agreement when a brokerage provides services to a customer?
- Correct Answers -Customer Service Agreement (which is non-exclusive)
