Humber Real Estate Course 1: Modules
1-3 Exam Questions and Answers
Real Estate and Business Brokers Act (REBBA) - answer- - regulates real estate
trading
- Ministry of Government & Consumer Services is responsible for it
- RECO enforces it
- provides a framework for the regulation of the profession to protect consumers &
ensure integrity of interactions is upheld
REBBA Code of Ethics - answer- - objective is to protect sellers & buyers by
outlining standards to be upheld during all real estate activities
- Fairness & Honesty
- Conscientious & Competent Service
- Services From Others
Code of Ethics: Services From Others - answer- must advise a seller/buyer to obtain
services from another person if the registrant isn't able to provide the services
listing brokerage - answer- when a brokerage has a property listed for sale
co-operating brokerage - answer- A brokerage (typically representing the buyer) who
is cooperating with a listing brokerage in a real estate trade.
buyer's brokerage - answer- The term used to refer to the buyer's brokerage when
the seller doesn't have their property listed for sale with a brokerage (privately selling
their home).
lessor - answer- the one who grants the lease, the landlord
lessee - answer- the tenant
representation relationship - answer- - the party is a client
- an agency relationship has been established between the 2 parties
- both regulatory (REBBA) & fiduciary obligations on the brokerage
fiduciary obligatons - answer- brokerage is required to:
- be loyal
- not disclose confidential information
- promote & protect the seller/buyer's best interests
providing services relationship - answer- - the party is a customer who is receiving
services from a brokerage (e.g., get info on a house for sale but represent
themselves)
- brokerage must treat party with fairness, honesty, and ensure any info provided is
accurate
- no fiduciary obligations
, representation agreement - answer- used when a brokerage represents a seller
(listing agreement) or buyer (buyer representation agreement) as a client
customer service agreement - answer- used when a brokerage provides services to
a customer. It can be non-exclusive
methods of calculating commission - answer- - percentage of the sale or lease
amount (can only decrease as the sale value goes up)
- an agreed amount
- a combination of both
note: if no amount is agreed upon between seller/buyer & brokerage, prevailing rate
in the community is used
real estate - answer- typically refers solely to the tangible aspects of a property, the
land and improvements
improvements - answer- any structure or other permanent addition, such as a deck,
shed, fence
real property - answer- includes the tangible aspects (real estate) and the intangible
(the rights)
bundle of rights - answer- The rights of an owner to possess, control, enjoy, sell,
lease, mortgage, and dispose of the property.
personal property - answer- moveable items of the property and referred to as
consumer goods (e.g., appliances, furniture). Generally, all property except land &
improvements is considered to be personal property
fixtures - answer- they are securely attached, usually permanently, to a property and
are to remain upon the sale of the property. If seller wants to retain any, agreement
of purchase & sale should identify the items as excluded
chattels - answer- the moveable possessions; by default they're excluded from
purchase; any chattel to remain should be identified in agreement of purchase & sale
title - answer- legal ownership of land - and with that ownership- legal rights; person
who has title is the legal owner & has the authority to sell
chain of title - answer- The series of deeds by which title to a piece of property was
transferred
from one owner to the next, over the course of the property's history.
title search - answer- The examination of public records relating to real estate to
determine the current state of the ownership.
marketable title - answer- Good or clear title, reasonably free from the risk of
litigation over possible defects. The transfer of title can occur without any
encumbrances affecting the buyer (e.g., mortgage registered on title).
1-3 Exam Questions and Answers
Real Estate and Business Brokers Act (REBBA) - answer- - regulates real estate
trading
- Ministry of Government & Consumer Services is responsible for it
- RECO enforces it
- provides a framework for the regulation of the profession to protect consumers &
ensure integrity of interactions is upheld
REBBA Code of Ethics - answer- - objective is to protect sellers & buyers by
outlining standards to be upheld during all real estate activities
- Fairness & Honesty
- Conscientious & Competent Service
- Services From Others
Code of Ethics: Services From Others - answer- must advise a seller/buyer to obtain
services from another person if the registrant isn't able to provide the services
listing brokerage - answer- when a brokerage has a property listed for sale
co-operating brokerage - answer- A brokerage (typically representing the buyer) who
is cooperating with a listing brokerage in a real estate trade.
buyer's brokerage - answer- The term used to refer to the buyer's brokerage when
the seller doesn't have their property listed for sale with a brokerage (privately selling
their home).
lessor - answer- the one who grants the lease, the landlord
lessee - answer- the tenant
representation relationship - answer- - the party is a client
- an agency relationship has been established between the 2 parties
- both regulatory (REBBA) & fiduciary obligations on the brokerage
fiduciary obligatons - answer- brokerage is required to:
- be loyal
- not disclose confidential information
- promote & protect the seller/buyer's best interests
providing services relationship - answer- - the party is a customer who is receiving
services from a brokerage (e.g., get info on a house for sale but represent
themselves)
- brokerage must treat party with fairness, honesty, and ensure any info provided is
accurate
- no fiduciary obligations
, representation agreement - answer- used when a brokerage represents a seller
(listing agreement) or buyer (buyer representation agreement) as a client
customer service agreement - answer- used when a brokerage provides services to
a customer. It can be non-exclusive
methods of calculating commission - answer- - percentage of the sale or lease
amount (can only decrease as the sale value goes up)
- an agreed amount
- a combination of both
note: if no amount is agreed upon between seller/buyer & brokerage, prevailing rate
in the community is used
real estate - answer- typically refers solely to the tangible aspects of a property, the
land and improvements
improvements - answer- any structure or other permanent addition, such as a deck,
shed, fence
real property - answer- includes the tangible aspects (real estate) and the intangible
(the rights)
bundle of rights - answer- The rights of an owner to possess, control, enjoy, sell,
lease, mortgage, and dispose of the property.
personal property - answer- moveable items of the property and referred to as
consumer goods (e.g., appliances, furniture). Generally, all property except land &
improvements is considered to be personal property
fixtures - answer- they are securely attached, usually permanently, to a property and
are to remain upon the sale of the property. If seller wants to retain any, agreement
of purchase & sale should identify the items as excluded
chattels - answer- the moveable possessions; by default they're excluded from
purchase; any chattel to remain should be identified in agreement of purchase & sale
title - answer- legal ownership of land - and with that ownership- legal rights; person
who has title is the legal owner & has the authority to sell
chain of title - answer- The series of deeds by which title to a piece of property was
transferred
from one owner to the next, over the course of the property's history.
title search - answer- The examination of public records relating to real estate to
determine the current state of the ownership.
marketable title - answer- Good or clear title, reasonably free from the risk of
litigation over possible defects. The transfer of title can occur without any
encumbrances affecting the buyer (e.g., mortgage registered on title).
