Module 1-5: Ontario Real Estate License Prep

Flashcards covering real estate legislation, registration procedures, property ownership types, land descriptions, and professional conduct standards based on Modules 1-5 of the Ontario real estate curriculum.

What organization administers and enforces the Trust in Real Estate Services Act (TRESA) 2002 in Ontario?

The Real Estate Council of Ontario (RECO).

How does General Regulations differ from the Code of Ethics under TRESA?

General Regulations set out technical and procedural rules for daily activities, while the Code of Ethics sets professional conduct standards requiring honesty, integrity, and competent service.

What is the definition of a 'registrant'?

Anyone registered with RECO, including brokerages, brokers, and salespeople.

What is the ultimate responsibility of a 'Broker of Record'?

They ensure TRESA compliance for the entire brokerage and supervise and educate brokers and salespeople.

What are the four steps to becoming a registered real estate salesperson in Ontario?

1. Complete pre-registration education. 2. Submit application with fees and criminal record check. 3. Undergo honesty and financial responsibility review. 4. Purchase mandatory professional liability insurance.

How often must registration with RECO be renewed?

Every $2$ years.

In a 'Sellers Market,' what is the relationship between buyers and properties?

There are more buyers than properties, leading to quicker sales.

When is commission typically paid to a salesperson?

Only after the transaction closes and the brokerage receives the funds, not when the offer is accepted.

What is the difference between 'Real Estate' and 'Real Property'?

Real Estate refers to the physical property (land and buildings), whereas Real Property includes the physical property plus the 'bundle of rights' (possess, use, enjoy, sell).

What is a 'fixture' versus a 'chattel' in an Agreement of Purchase and Sale (APS)?

A fixture is attached to the property and included in the sale unless excluded; a chattel is movable and not included unless specified.

What are the three levels of industry associations for REALTORS in Ontario?

CREA (National), OREA (Provincial), and Local Real Estate Boards (Regional).

What is 'Fee Simple' ownership?

A freehold estate that gives the owner the greatest rights and fewest limitations, with ownership being indefinite.

What are the four 'unities' required for Joint Tenancy?

Unity of Title, Unity of Time, Unity of Possession, and Unity of Interest.

What is the '10-day cooling off period' regarding Time Share ownership?

A period where a buyer can cancel the agreement after receiving it, as per the Consumer Protection Act 2002.

What is the difference between a Dominant Tenement and a Servient Tenement in an easement?

The Dominant Tenement is the property that receives the benefit; the Servient Tenement is the property the easement runs over.

Under Ontario's old registry system, how many years of possession are required for 'Adverse Possession'?

$10$ years of active, visible, exclusive, and continuous possession.

What is 'Escheat'?

A government power where ownership returns to the government because the owner dies without a will or legal heirs.

In historical land measurement, how long is a 'chain' in Gunter’s chains?

$66\,\text{feet}$.

What is a 'Metes and Bounds' description?

A precise legal boundary description that starts at a commencement point and moves around the property until it returns to the starting point, using compass directions and distances.

What does a Surveyor's Real Property Report (SRPR) illustrate?

Legal property boundaries and the exact locations of all structures, such as houses, fences, and sheds, on the land.

What are the three principles of the Land Titles System?

1. Mirror Principle (reflects current status). 2. Curtain Principle (no need to investigate past). 3. Insurance Principle (compensation for registry errors).

What is a PIN in the Polaris system?

A Property Identification Number assigned to each parcel.

When dealing with a Self-Represented Party (SRP), what should a salesperson warn them about regarding confidential information?

That any information the SRP provides may be shared with the salesperson's client.

What is 'Multiple Representation'?

When a brokerage or designated representative represents both the buyer and the seller in the same trade.

What constitutes a 'Material Fact' under TRESA?

Any fact that could affect a reasonable person's decision to buy or sell real estate.

What is a 'Latent Defect'?

A hidden defect known to the seller that makes the property dangerous or unfit for habitation and cannot be discovered by reasonable inspection.

According to TRESA, how is 'Advertising' defined?

Any public promotion of a brokerage, salesperson, services, or real estate trade, including social media, business cards, and websites.

What is a 'Sliding Scale' remuneration model?

A commission structure where the percentage decreases as the price increases, such as $5\%$ on the first $\$500,000$ and $3.5\%$ on everything over $\$500,000$.

What is the requirement for presenting written offers to a seller?

The salesperson must present every written offer as soon as possible, regardless of terms or remuneration.

Under TRESA, what must a salesperson do before providing services or assistance to a consumer?

They must provide and explain the RECO Information Guide.