Practice Questions

Real Estate
Course 1

Humber Real Estate Course 1 226

 Humber Real Estate - Course 1, Module 1: Introducing the Real
Estate Profession

1. What does The Real Estate and Business Brokers Act 11. How does RECO work in 1. Enforcing standards to obtain &
REBBA stand the public interest? maintain registration.
for? 2. Establishing education
standards.
2. Whose role is it RECO
3. Establishing & administering
to enforce
insurance requirements (including
REBBA?
consumer deposit protection).
3. What is the To provide a framework for the 4. Addressing inquiries, concerns,
purpose of responsive regulation of the real estate & complaints about the conduct
REBBA? profession to protect consumers and of a
ensure the integrity of real estate brokerage, broker, or salesperson
transactions is upheld. and taking appropriate action.
4. What Ontario The Ministry of Government and 5. Conducting inspections of
government Consumer Services is 'responsible' for brokerages to ensure compliance
body is REBBA, but it's RECO's role to interpret, with REBBA and
responsible for enforce and suggest changes to REBBA. to educate brokers of record.
REBBA? 6. Consumer protection
education and information for
5. What does the Any individual OR brokerage that is
sellers & buyers involved in real
term 'Registrant' registered to trade in real estate.
estate transactions.
refer to?
12. What is required to trade Registration with RECO
6. What is the To set minimum standards to help ensure
in real estate in Ontario?
purpose of no misunderstanding or ambiguity exists
REBBA's Code of in the minds of sellers and buyers about 13. What is RECO's Trading includes any activity,
Ethics? what they should expect when interacting definition of 'Trading' in such as listing a property for
with a real estate professional. real estate? sale, showing a
property to a buyer, negotiating
7. What is the To protect sellers and buyers by outlining
an offer for a seller or a buyer,
fundamental professional and ethical standards to be
or any act,
objective of upheld during all real estate activities.
advertisement or conduct that
REBBA's Code of
would further any purchase, sale,
Ethics?
exchange, option, lease or rental
8. What are the 3 - Fairness and Honesty of a property.
tenants of - Conscientious and Competent Service
14. What is the general term Registrant
REBBA's Code of - Services from Others
used to refer to all
Ethics?
brokerages, brokers &
9. The Real Estate The provincial government (Ontario) salespersons registered
Council of under REBBA?
Ontario (RECO)
15. What are the 3 Brokerage, Broker & Salesperson
administers
professional categories
REBBA on behalf
permitted under REBBA?
of who?
16. Define 'Brokerage' A corporation, partnership or
10. What is the To support a fair, safe and informed real
sole proprietorship that trades in
mission of The estate market for consumers in Ontario
real estate on behalf of others for
Real Estate through innovative regulation of the
compensation or reward, or
Council of services offered by those who trade in
expectation thereof.
Ontario (RECO)? real estate.
17. Who represents or The brokerage (NOT the
provides services to a individual broker or salesperson).
seller or buyer? Under REBBA, all brokers and
salespersons are deemed
employees of the brokerage.

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18. Define 'Broker' An individual who has the 27. What personal circumstances might - Criminal charges
prescribed qualifications to be affect fitness for registration and must & convictions
registered as a broker under be disclosed when registering with - Bankruptcy
REBBA and who is employed RECO? (RECO reviews on
by a brokerage to trade in real a case-by-case
estate. basis)
19. Define 'Salesperson' An individual with the 28. What does RECO's insurance program - Consumer
prescribed qualifications to be cover? deposit protection
registered as a salesperson - Errors and
under REBBA and who is omissions
employed by a brokerage to - Commission
trade in real estate. protection
20. What is required to Paying annual fees and 29. When is the annual RECO insurance Mid-August
maintain registration as a additional educational premium due?
salesperson? requirements.
30. When does the RECO insurance policy September 1
21. Define 'Broker of Record' An individual who is a broker begin each year?
and is designated by the
31. How long does registration with RECO 2 years
brokerage to ensure
last before you need to renew?
compliance with REBBA.
32. Define a 'Seller's Market' Buyers outnumber
22. What is the job of the To be responsible for all
available
Broker of Record? activities of the brokerage,
properties.
including all brokers,
salespersons and all other 33. Define a 'Buyer's Market' Available
employees of the brokerage properties
and to ensure compliance with outnumber buyers
REBBA. looking to
purchase.
23. What are the 3 steps 1. Complete the registration
required to register with education requirements. 34. Define a 'Balanced Market' The number of
RECO? 2. Register with RECO once listings is sufficient
employed by a brokerage. for the number of
3. Purchase insurance buyers.
coverage through the RECO 35. What are the main areas of real estate - Residential
Insurance Program. you can trade in? resale
24. Once registered, how long 2 years - New home sales
do you have to complete - Residential
Post-Registration condominium
Education requirements? - Rural,
recreational &
25. Once you pass the Pre- 1 year
agricultural sales
Registration exam, how
- Commercial
long do you have to find
- Leasing
employment with a
(commercial or
brokerage and apply for
residential)
registration with RECO?
36. What type of knowledge will be most - Available
26. Before you are able to 1. Completed application form
helpful in the sale of rural properties? services
register with RECO, what with fees (application review
- Wells & septic
documents must you fee, 2 year registration fee &
systems
submit? pro-rated insurance fee).
2. Criminal record check.
3. Canadian work permit (if
required).

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37. What type of knowledge will be most helpful in - Unique zoning requirements (waterfront)
the sale of recreational properties near water - The ability to construct improvements along the water
(i.e. cottages)? - Any other restrictions imposed by local, provincial or federal regulations
38. What type of knowledge will be most helpful in - Highest and best use of the land
the sale of farms? - How official plans & zoning bylaws impact property use
- Accessibility to the property
- Specialized marketing techniques
39. What factors can impact your earnings as a - Market conditions (local, national & international)
salesperson? - Time of year (winter is slower)
- The type of market (Buyer's, Seller's or Balanced)
40. What are the types of commission sharing - Yearly plan with increasing percentage share to the salesperson as higher
methods? levels of production are achieved
- Annual percentage based on a higher share being paid to the salesperson, but
the brokerage will require a larger contribution towards specified expenses
- Annual percentage based on a higher share being paid to the salesperson, but
the brokerage will require a monthly desk fee (paid whether or not there is
commission each month)

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 Humber Real Estate - Course 1, Module 2: Introducing the
Fundamentals of Real Estate

1. What are the 2 types - Main brokerage office 11. What is the A person or other entity (i.e. a corporation)
of offices a - Branch office definition of a that owns a property that is leased to
brokerage can have? 'Landlord'? another person, rather than being occupied
by the owner.
2. Does every branch No.
office require a Only 1 Broker of Record is required 12. Describe a The term representation implies an agency
Broker of Record? for the main office only. Each branch client relationship with the brokerage and this
office is assigned its own Branch relationship in places both regulatory (REBBA) & fiduciary
Manager to provide supervision, reference to a obligation on the brokerage. The brokerage
compliance with REBBA & handle all brokerage. is required to be loyal, not disclose
record management. confidential information and promote &
protect the seller or buyer's best interests.
3. When a brokerage The listing brokerage
has a property for 13. Describe a A brokerage can provide services to a seller
sale, what is the customer or buyer rather than representing the party.
brokerage identified relationship in This doesn't require the same level of
as? reference to a obligation as a client relationship.
brokerage. A brokerage must treat the customer with
4. When a brokerage is The co-operating brokerage
fairness, honesty & integrity and ensure
working with a buyer, OR
information provided is accurate.
what is the brokerage The buyer's brokerage (when it's a
BUT ... No fiduciary obligations are owed
identified as? private sale, because the buyer's is
when providing services (such as loyalty,
the only brokerage listed in the
confidentiality or promoting their best
agreement as the seller doesn't have
interests).
one)
14. What is the Representation Agreement (AKA listing
5. The term 'Seller' Vendor
name of the agreement or buyer agreement)
(used by REBBA) is
agreement
synonymous with the
when a
term '__________' which
brokerage
may be used in other
represents a
legislation.
buyer or
6. What word, under Divestiture seller?
REBBA, is used to
15. What is the Customer Service Agreement (which is non-
reference the selling
name of the exclusive)
aspect of a real
agreement
estate transaction?
when a
7. The term 'Buyer' Purchaser brokerage
(used by REBBA) is provides
synonymous with the services to a
term '__________' which customer?
may be used in other
16. What type of Agreement of Purchase and Sale
legislation.
agreement is
8. What word, under Acquisition used to
REBBA, is used to negotiate the
reference the terms of a
purchasing aspect of sale between
a real estate a buyer and
transaction? seller?
9. What is another term Lessor 17. In what ways - A percentage of the sale or lease amt (i.e.
for 'Landlord'? can a 4% of the sale price)
10. What is another term Lessee commission - An agreed upon amount (i.e. $10k)
for 'Tenant'? be - A combination (i.e. 2.5% of the sale price +
negotiated? $5k)

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18. In what document is Representation Agreement (AKA 29. What term is used under Transfer / Deed of Land
the agreed-to listing agreement or buyer the Land Registry Office
commission typically agreement) to define evidence of
described (if a ownership?
separate commission
30. What are the 2 land - The Registry Act
agreement
registration systems - The Land Titles Act
document is NOT
used in Ontario where a
used?
title can be registered?
19. What is the definition Both the tangible aspects (the real
31. Instead of the term Charge
of 'Real Property'? estate) and the intangible (the rights)
'Mortgage' (which is used
of the property.
under the Registry Act ),
20. What is the definition Solely the tangible aspects of a what term is used under
of 'Real Estate'? property. the Land Titles Act?
21. What is the definition The right to possess, use, enjoy and 32. What is another term for Mortgagee
of the 'Bundle of sell the real estate. 'Lender' under the
Rights'? Registry Act?
22. What is 'Personal Moveable consumer goods (i.e. 33. What is another term for Mortgagor
Property'? appliances, furniture, light fixtures & 'Borrower' under the
drapes). Personal property includes Registry Act?
both Fixtures & Chattels.
34. What is another term for Chargee
23. What are considered Personal property that is securely 'Lender' under the Land
'Fixtures'? attached - usually permanently - to a Titles Act?
property and are typically included
35. What is another term for Chargor
in the sale of the home. Examples of
'Borrower' under the
fixtures: curtain rods, window
Land Titles Act?
shutters, light fixtures, mirrors &
built-in appliances. 36. "A borrower __________ the gives
mortgage and the lender
24. What are considered Personal property that is moveable.
__________ the financing."
'Chattels'? These are usually excluded from the
purchase of a property unless 37. What distinguishes a More living space and an
otherwise negotiated between the ranch style bungalow attached garage.
buyer & seller. from a regular
bungalow?
25. What is the definition The legal ownership of land
of 'Title'? including the legal rights. 38. Name the characteristics - Makes more effective use of the
of a bi-level / split lower basement areas
26. What is a typical The seller's mortgage (it must be
entrance bungalow. - Front door foyer located as a
encumbrance that discharged before the title transfer
split level between the upper
would be found on a can take place).
and main areas and lower areas
title before a sale is
- Basement is raised above
complete?
grade level when compared to
27. What term is used Deed the traditional bungalow,
under the Registry allowing for larger windows and
Act to define greater sunlight, access &
evidence of ventilation
ownership?
28. What term is used Transfer
under the Land Titles
Act to define
evidence of
ownership?

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39. Name the - About 60% of the total living area is 45. Describe a linked - Two or more single-family homes
characteristics of contained on the first floor dwelling. that are attached
a one and one- - Style is more cost-effective than a - Placement of the attached portion
half storey home. bungalow because of more square isn't always obvious (may be a
footage on the same building coverage concrete wall below grade or above
(footprint) of the land grade using the garage walls)
- High-pitched roof for additional living - May appear closer to the property
area line than other homes in similar
- Dormers (protrusions through the roof) neighbourhoods
were added as the design became more
46. Describe a multi- - More than one dwelling unit within a
popular
unit residential single building
40. Name the - Large living area with separate level dwelling. - Often a residential duplex, triplex or
characteristics of for sleeping areas fourplex
a two storey - Ceilings upstairs are flat (unlike one - Separate entrance and/or shared
home. and one-half storey homes) entrance through a common vestibule
- Dominates the residential market given
47. Name the different - Office
high land costs & the ability to maximize
types of commercial - Retail
living area
buildings. - Mixed-use
41. Name the - Attempts to provide ease of movement - Multi-unit
characteristics of from one area of the home to another - Industrial
a split-level with minimal steps - Agricultural
home. - First introduced in the 1960s, most
48. How many members 12
popular in the 70s & 80s
does RECO's Board
- Includes side-split (left to right) and
of Directors have?
back-split (front to back) designs
- Can involve 3 or more levels of living 49. What Carries out the powers and duties
area (up to 5) responsibilities does imposed under REBBA
- Features a lower level family room, the Registrar of
main level living room, dining room and RECO have?
kitchen, and an upper level for 50. What does CREA Canadian Real Estate Association
bedrooms and main bathroom stand for?
42. What's the name A party wall 51. What are the 3 - The Canadian Real Estate
of the wall levels of Organized Association (CREA)
connecting 2 Real Estate? - The Ontario Real Estate Association
properties? (OREA)
43. Name the types - Semi-detached - Local Real Estate Boards
of attached - Townhouse 52. What organization Canadian Real Estate Association
homes. - Linked dwelling owns trademarks (CREA)
- Multi-unit resident dwelling Realtor & MLS in
44. Describe a - 3 or more units joined together by Canada?
townhouse. party walls 53. What are the - Lobbying for Realtors
- Full basement, main level living area & functions of The - Providing downloadable forms &
upper level for bedrooms Ontario Real Estate clauses
- Can be on their own land or part of a Association - Offering savings programs
condo complex (OREA)? - Informing members of industry news

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54. Registration with which organization gives registrants access to Local Real Estate Board
the MLS system, local market information & data reports?
55. According to its mission statement, what is CREA's primary To represent and promote the interests of the members,
purpose? enhance members' professionalism and ability to succeed,
and advocate policies that ensure real estate property rights
and ownership.
56. When was The MLS created? 1950s
57. Which organization sets out various requirements to boards The Canadian Real Estate Association (CREA)
concerning how MLS is to be administered (i.e. type of listings
info needed & required notification to the board when properties
are sold)?
58. What is the definition of a "real estate board"? A non-profit corporation established for the benefit of its
members.
59. How many real estate boards are currently operating in Ontario? 38
60. What is the largest real estate board in Ontario? The Toronto Real Estate Board (TREB)
61. What specialty designations does The Real Estate Institute of - Fellow of the Real Estate Institute (FRI)
Canada (REIC) offer? - Certified Property Manager (CPM)
- Certified Commercial Leasing Officer (CLO)
- Accredited Residential Manager (ARM)
62. What is the name of the organization that offers advanced Certified Commercial Investment Member (CCIM) Institute
education programs for professionals in commercial and
investment real estate?
63. What organization is dedicated to the maintenance of high Society of Industrial and Office Realtors (SIOR)
professional standards in the fields of industrial and office real
estate?

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 Humber Real Estate - Course 1, Module 3: Introducing
Property Ownership, Rights and Limitations

1. Define 'Estate' An interest in 12. What is the A fee simple ownership of the unit and a
land that definition of a tenant in common ownership of the portion
contains standard used jointly with others known as the
various condominium? common elements (hallways, elevators,
rights playgrounds, lobby, etc.)
associated
13. What is the An ownership where there are no units,
with
definition of a rather owners enjoy the common elements
ownership or
common and pay a maintenance fee for the repair,
tenancy.
elements maintenance and replacement of any
2. What are the 2 most common types of Fee simple & condominium? common element. Each owner has an
estates? leasehold. ownership interest in their own property and
an undivided interest in the common
3. What type of rights would be required to Air rights
elements. The owner's property is known as
build a bridge, a raised railroad or
a "Parcel of Tied Land."
skyscraper?
14. What is a co- A join ownership alternative in which a
4. What type of rights would be required to Surface (or
operative? property is owned by a corporation, and
build on a parcel of land? ground
members have an agreement to occupy a
level) rights
specific unit.
5. What type of rights manage the property Riparian
15. What types of - Equity co-operative
owner's access to and use water, and are rights
co-operatives - Non-profit co-operative
often encountered in the listing and selling
exist?
of recreational properties?
16. What is the A corporation that owns the land and
6. What type of rights would be required Mineral
definition of buildings with members as shareholders in
before removing gas, gold, oil, silver or rights
an 'Equity Co- the corporation. Ownership is by way of a
precious metals from the ground?
Operative?' share certificate in combination with an
7. What are the 2 types of concurrent - Joint occupancy agreement relating to a specific
ownership? tenancy unit, usually accompanied by parking and
- Tenancy in locker.
common
17. What is the Owners hold shares in a corporation which
8. What is the primary difference between Survivorship primary way a owns the building vs. owning a title for a
joint tenancy and tenants in common? co-operative specific unit in the building only.
9. A man buys a home with his new spouse, but Tenants In is different
upon his death he wants the estate to be Common than a
passed down to his adult daughter from a condominium?
previous marriage, not his new spouse. What 18. What is the To provide housing for its members, who no
type of concurrent ownership should the primary ownership interest and simply pay rent to
couple choose? purpose for a the corporation owner.
10. Two women invest in a two-storey house to Joint Tenancy non-profit co-
use as an investment property before they operative?
are in a car accident together. One woman 19. What is the Shared ownership by multiple individuals to
dies and the house is passed directly to the definition of partially own a valuable asset as tenants in
surviving woman. What type of concurrent 'Fractional common with usage rights allocated
ownership did the partners have? Ownership?' depending on the size of the fraction
11. What are the 4 required unities for joint Title, Time, purchased. Shares must be equal in size.
tenancy? Possession, 20. What is 'Co- Any situation in which 2 or more people
Interest Ownership?' own a property jointly (tenant in common
ownership). The deed outlines the
proportionate interest held by each owner
and it doesn't have to be equally divided.

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21. What is a 'Land The exclusive right to use the land for a 28. Mobile home parks and The Residential Tenancies Act,
Lease?' specified amount of time, and can be rented mobile homes 2006
granted by private sources and by the are covered by the
Crown (i.e. Toronto Island) provisions of what Act?
22. What is a 'Life Not ownership of a property but an 29. A rented site for a Rental Unit
Lease?' "interest" in that property in exchange mobile home is
for a lump sum payment up-front. Also considered a ______ ______
required are monthly maintenance fees , even if the mobile
(snow removal, landscaping, etc.) home on the site is
Included is the right to live in a unit owned by the tenant of
rather than own it. This type of lease the site.
typically lasts until the end of the lease
30. What specifics must be Manufacturer
holder's life, or until they move.
identified in the - Model
23. What is the The division of property rights into Agreement of Purchase - Serial number
definition of a fractional interests based on time. and Sale of a mobile - Site location (if inside a park)
'Timeshare?' home?
24. What categories - Fee Ownership Interest 31. If a buyer is keeping a Relevant Site Lease Document
do timeshares - Right to Use Interest mobile home in a park
generally fall after closing, the
under? Agreement of Purchase
and Sale should include
25. How does fee A buyer purchases an actual deed
what document?
ownership interest in the property for a specific
interest work in a period of time each year. Ownership 32. A landlord must give 21
timeshare? does not end after a specific time the tenant a copy of
period and usage rights can be sold, any written lease within
gifted or included in a will. _____ days after the
tenant signs it.
26. How does a right- A buyer purchases the right to use a unit
to-use interest in but does not have an ownership interest 33. What are the two major Residential and Recreational
a timeshare work? in the property. The buyer doesn't types of houseboats?
receive a title deed, the contract only
34. What are the things a - Right of dockage
gives the right to use for a specific time
buyer should ensure - Access to utility hook ups
period. Typically the right to use will
before buying a - Access rights to the marina or
expire after a stated number of years
houseboat? docking facility
and then revert back to the owner of the
property. 35. What is an 'Easement'? A right enjoyed by one landowner
over the land of another for a
27. According to the - Every agreement must be in writing
special purpose (not a general
Consumer - Cancellation: Cooling-off Period
use). It doesn't grant ownership to
Protection Act, (within 10 days of receiving the written
any part of the land, only a right
what rights do agreement without any reason required)
to use for that special purpose.
buyers have when - Cancellation: Failure to Meet
purchasing a Requirements (within 1 year after the 36. Does an easement Yes.
timeshare within agreement if they don't receive a written transfer when the land
Ontario (but not legal copy of the agreement) is sold?
outside of the
province)?

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37. What are the - Specific use 44. What are the 3 ways an - Merge (when the dominant
6 defining - Dominant and servient tenements easement can be and servient tenements merge)
characteristics - Two different parties (one person can't own terminated? - Release (the dominant
of both the servient and dominant tenements) tenement removes the
'Easements'? - Sole benefit (easements must solely benefit easement from the title)
the dominant tenement) - Ceasing of purpose (if the
- Transferable (Easements run with the land purpose of the easement
and easement binds subsequent owners) disappears, so does the
- Adjoining and non-adjoining (the dominant easement)
and servient tenement do not have to be
45. What are the 3 types of - Right-of-way (allows another
adjoining)
easement? person to travel or pass
38. What is a The estate or interest in land that derives through another's land)
dominant benefit from an easement over a servient - Party wall (i.e. shared wall
tenement? tenement. (In other words, the dominant between units)
tenement is the landowner that gets to - Mutual shared driveway
benefit from the easement) (easement exists on each
property)
39. Can a No
dominant and 46. What type of easement Right-of-way
servient allows a person the right
tenement be to enter on the lands of
owned by the the servient tenement for
same person? the purpose of
maintaining the easement
40. What are the - Express grant
and making repairs?
ways an - Prescription
easement can - Implication 47. When a property owner Encroachment
be created? - Statute builds a structure such as a
shed or wall on a
41. Define an Continuous, exclusive access which is open
neighbouring property this
easement via for many years without the consent of the
is known as what?
'Prescription' owner, but with the owner's knowledge.
48. What is a 'Restrictive A type of contractual
42. Define an Created to avoid detrimental effects or
Covenant'? arrangement that places
easement via inconvenience to an adjoining property
restrictions on what the owner
'Implication' owner. For example, if a sale of land
of the land can do with their
adjoining the seller's land causes that parcel
property (i.e. architectural
of land to be landlocked, the law implies
guidelines, parking restrictions,
that a buyer would have an easement over
fence height, single family only,
the seller's remaining land by way of
etc.)
necessity.
49. Define 'Adverse Occurs when an individual who
43. Define an Easements created by statute do not require
Possession' is not the owner takes
easement via a dominant tenement. For example, the back
possession of the property,
'Statute' of one property is bordered by a strip of
without the consent of the
land hosting public utilities that are only
owner.
accessible with machinery through that
property. In this case, an easement over the
property is created by statute.

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50. How, under 'Adverse Possession', can Possession must be:
an occupier of land extinguish the title - Visible
of the owner and claim legal - Exclusive
ownership of that land? - Continuous for a period without the consent of the owner but with the owner's
knowledge for a minimum of 10 years
Note: No title claims by adverse possession can occur under the land titles, which is a
system of land registration in Ontario
51. What is 'Profit-a-Prendre'? Coming from the French term meaning "right of taking", it's an interest in land and gives a
person the right to enter another's property based on a written agreement and take
something from it such as crops, minerals, fish or timber. This right can, in some instances,
pass with title upon sale of the property.
52. What limitations can the government - Expropriation
impose over property ownership? - Right to regulate
- Right to levy taxes
- Escheat
53. What is 'Expropriation'? Acquisition of private property for the public's best interest and use with fair compensation
to the owner. This is done by the government exercising the right of eminent domain.
54. What is the 'Right to regulate'? The right of the government to regulate property for the promotion of public safety, health,
morals and general welfare. It's also referred to as police power. Zoning bylaws, building
codes, traffic and sanitary regulations are also based on this right to regulate.
55. What is the 'Right to levy taxes'? The right of the government to levy taxes on property. For example, real property tax,
which funds the operating budget of the municipality to provide services to the people in
that municipality. Another example is land transfer tax.
56. What is 'Escheat'? The reversion of property to the government or some kind of government agency in the
event that a property owner dies, leaving no will and having no legally qualified heir to
whom the property may pass.

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 Humber Real Estate - Course 1, Module 4: Introducing Land
Description and Land Registration

1. What's the name of the primitive Chain and link 14. What is the To determine the boundaries of a piece of
system used for measuring land in system (aka Gunter's purpose of a land, and identify locations of structures
Europe and Ontario? Chain) land survey? and their distances to lot lines, as well as
any restrictions such as encroachments,
2. Who divided Ontario into counties in Governor Simcoe
easements or rights of way.
the 1700s?
15. What are the - Surveyor's Real Property Report
3. Counties were divided into smaller Townships
most common - Reference Plan (R-Plan)
parcels of land called _____________
types of - Plan of Survey
4. Each township was divided into strips Concessions surveys? - Plan of Subdivision
of land known as __________
16. Define a A survey, traditionally referred to as a
5. Each concession was separated from A road allowance 'Surveyor's building location survey, that consists of
the next one by what? Real Property two parts: The Plan of Survey and the
6. Each concession was divided into Lots Report' Written Report. Shows everything that
________ might affect the title to the property.

7. What is a "Parcel of Land"? The entirety of the 17. Define a 'Plan A survey that consists of a visual depiction
lot and concession. of Survey' of the property, but does NOT contain a
written report. Not registered in a land
8. Name the 3 types of township lots. - Single front
registry office but commonly attached to
- Double front
another document (i.e. deed/transfer of
- Sectional
land). Also lacks certain certificates
9. What is the oldest township system? Single front required by the Registry Act or Land Titles
10. Where were single front townships On the banks of Act.
typically found? navigable lakes and 18. Define a 'Plan A detailed survey indicating lots, blocks of
rivers. of Subdivision' land, road allowances, etc. Illustrates
11. What is the newest township system? Sectional individual parcels that will be created once
plans are approved.
12. Describe the history of the "Metes An older system of
and Bounds" system. written land 19. What is the Cadastral surveying
description that technical term
arose when irregular used for the
parcels were carved "comprehensive
out of concession recording of
lots. land and
property
13. What land measurement system Mete and bounds bounds"?
starts at a commencement point on
the property and progresses around 20. According to - Research (info available re: legal
the property until returning to the The Association description, easements, etc.)
original point of reference, using of Ontario Land - Measurement
compass directions? Surveyors, what - Monumentation (physical markers/posts
are the 4 located at regular intervals around the
components of property boundary)
a survey? - Plan and/or Report
21. Surveyors in - The Surveys Act
Ontario are - The Surveyors Act
subject to what
Acts?
22. What is the The Association of Ontario Land Surveyors
governing
body for land
surveyors in
Ontario?

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23. What Act sets out The Surveys Act 29. Is a new No.
requirements for the survey The need for a new survey will depend on
establishment of required when the individual buyer, and often the lender.
survey items (i.e. buying or The responsibility for paying for a new
lines, boundaries & selling a survey would be negotiated between the
corners)? property? buyer & seller.
24. What are the 2 - The Description 30. Can a No. A photocopy may be altered in some
documents required - The Declaration photocopy of way or may not show all of the information
for condominium a survey plan from the original survey. A copy of the plan
registration, which are be accepted that does not bear an impressed seal may
submitted by a as authentic? not be a valid copy of the original plan.
Surveyor?
31. What is a The legal description of the property.
25. To be complete and - Municipal address "Land
accurate, the - Dimensions & bearings Description"?
Surveyor's Real - Designation of adjacent properties,
32. Why are land They clearly identify the property (vs. a
Property Report must roads, lands, etc.
descriptions more generic municipal address like 14
have what? - Location & description of notable
important? Main St.)
improvements (overhangs, fences,
driveways, pools, trees, etc.) 33. When is a - A title is transferred
- Easements, rights-of-way or legal land - A property is mortgaged
encroachments (hydro lines, description - An easement is registered
telephone, etc.) used? - Every transaction by a salesperson (i.e. in
- Location of monuments the listing & Agreement of Purchase and
- Note indicating who the survey Sale)
was prepared for 34. Where can you - Deed
- Certification by an Ontario land find a - Survey
surveyor property's - Registry & municipal assessment records
- Written report legal land - Municipal tax bills
26. What is a Reference A survey with multiple purposes that description?
Plan (R-Plan)? normally describes more than one 35. What are the - Locational Reference
interest in land and is officially parts of a legal - Encumbrances (restrictions / easements)
submitted to the land registry office. land - Municipality / Registry Office
27. What are R-Plans - Severance of an existing parcel of description?
normally required land 36. Land The Real Property Registration Branch of
for? - First application (first registration) registration is The Ministry of Government and Consumer
under the Land Titles Act administered Services
- When the land registrar determines by what
that the title is too vague or branch of
complex, an R-plan would be government?
requested for clarity
37. What land The Registry System
28. What is the purpose Can't be registered at a land registry registry
of a Plan of Survey? office because it lacks certification, system has
but could be useful to a homeowner traditionally
to establish property boundaries (i.e. prevailed in
to secure a building permit). Southern
Ontario?

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38. What land The Land Titles System 47. What is the The parcelization process (parcelizing
registry key to refers to the organization of property by
system is automated land ownership as opposed to geographic
the majority registration of location in The Registry).
of Northern land?
Ontario
48. A salesperson - Who is the registered owner
under?
can confirm - Determine what financing exists
39. What is the To provide statutory rules affecting interests what details - Identify various issues that might affect
joint with respect to any particular parcel of land about a the selling of the property
purpose of and the priority of those interests. These acts property using
the Registry attempt to induce prompt registration and to E-Registration
Act and the indicate clearly what interests are claimed in online?
Land Titles the land thus facilitating the sale of real
49. What is the A property information database that
Act? property.
'Geographic combines the user-friendly attributes of
40. Can land be No. Information conventional maps with user-friendly
registered System' (GIS)? databases (including streets, buildings,
under both parcels of land, natural geographic features,
the Registry crime stats, traffic counts and zoning
Act and the requirements.)
Land Titles
50. The Registry Geographic location / the land description
Act?
System (aka Tract Indexing)
41. What is the An administrative official only. records
job of the property
Land interests on
Registrar in what basis?
the Registry
51. The Land Titles Parcel numbers
System?
System
42. What is the Maintains and guarantees title. records
job of the property
Land interests on
Registrar in what basis?
the Land
52. What did The Abstract Books
Titles
Registry
System?
System use to
43. Describe The mapping and property detail database of keep track of
POLARIS the Ontario government. land records?
44. Describe Responsible for implementation, operation 53. What is the Locating, organizing and condensing
Teranet and enhancement of POLARIS. definition of pertinent facts about documents and other
'Title related materials registered on title.
45. Which land The Registry System, because records are
Searching'?
registry being converted to land titles (officially
system is referred to as the Land Titles Conversion 54. What is a Original deed issued from the Crown
slowly Project). 'Crown (government) representing the root of title
disappearing Patent'? for a particular property.
from
55. What is a A chronological listing of all conveyances,
Ontario?
'Chain of and other matters impacting title, typically
46. What is the To transfer registry records into land titles and Title'? referred in relation to 40-year search
aim of the - at the same time - automating these records requirements under registry.
Land Titles and providing for electronic registration.
Conversion
Project?

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56. How are documents in the Chronologically, thereby 65. Describe The The Mirror Principle is deemed to give
abstract books organized? establishing priority. Insurance Principle the absolute correct reflection of title
according to the but, if through human error, a flaw
57. The Land Titles Act operates Land Titles Register
Land Title Act appears, anyone who suffers loss
on the premise that the
must be put in the same position, so
_______ ________ __________ (a
far as money can do, that they would
book roughly comparable to
have been in had the reflection been a
the Abstract Book in
true one.
Registry) is the sole
information source for 66. Define the 'Land Under the Land Titles Act, this states
purchasers. Titles Assurance that persons deprived of ownership
Fund' through selected errors or fraud are
58. What are the 3 principles - Mirror principle
entitled to compensation, provided
that the Land Titles system is - Curtain principle
such compensation cannot be
based on? - Insurance principle
obtained from other sources.
59. How does the Land Titles The only existing and valid
67. What is 'Title Insurance for owners and lenders
Register differ from the interests remain on the
Insurance'? regarding various risks and
Abstract Book? Register. All prior interests
undisclosed interests affecting title.
that have ended are deleted.
68. What does Province of Ontario Land Registration
60. What year was the Land 1885
POLARIS stand for? and Information System
Titles Act passed in Ontario?
69. What is Teraview? A software package providing an
61. What system must register Land Titles Act
electronic gateway to automated
all provincial Crown patents,
property records in Ontario
all land to be subdivided and
all land for condos 70. What is Teraview Implementation, operation and
developed under the responsible for? enhancement of POLARIS
Condominium Act?
71. What are the two - Land Titles Absolute (LTA)
62. Land registered under the First application systems that - Land Titles Conversion Qualified
Registry Act may be brought operate within the (LTCQ)
under land titles by the overall Land Titles
owner through a process System?
called _______ _________.
72. Land Titles First application
63. Describe The Mirror Principle The register of title is a Absolute is issued
according to the Land Title mirror that accurately and for parcels that are
Act completely reflects, beyond brought into land
all argument, the current titles by way of
facts that are material to a ________ ___________.
person's title.
73. What percentage of 35
64. Describe The Curtain The register is the sole the land in the
Principle according to the source of information for registry system was
Land Title Act proposed buyers, who need converted into the
not and indeed must not land titles system
concern themselves with using the Land
trusts and equities that lie Titles Absolute
behind this curtain of (LTA) system?
information.

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74. What percentage of land was 65 83. Describe the Replaces the abstract indexes and parcel
brought into the land titles system Title Index registers found in the traditional paper-
through the Land Titles Conversion Database based land registry office. The database
Qualified (LTCQ) system? is automatically updated as new
documents are registered.
75. During what project is the first The Land Titles
application process replaced with a Conversion Project 84. Describe the Provides visual indexing maps to locate
large-scale administrative Property Index properties. Updates occur following
conversion? Database document registration when mapping
amendments are made relating to
76. What is 'Adverse Possession'? Occurs when an
property boundaries.
individual who is not
the owner takes 85. Describe the Includes plans as well as images of all
possession of the Image Database active instruments in the title index
property (also known database. E-registration documents are
as squatter's rights). updated shortly after registration. Paper-
based documents are collected on
77. Owners wishing to develop Land Titles Absolute
microfilm and then transferred to the
property by registering a plan of Plus
image database.
subdivision or condominium on an
LTCQ parcel must apply to upgrade 86. What are the 5 - Transfer/Deed of Land
the title to a ______ _______ __________ standard - Charge/Mortgage of Land
________. documents set - Discharge of Charge/Mortgage of Land
out by The Land - Document General
78. What does 'Land Titles Absolute The property is free of
Registration - Schedule
Plus' mean? any encumbrances
Reform Act?
and the title cannot
be disputed by 87. What document The Land Transfer Tax Affidavit
anyone. is normally
registered along
79. In which type of property are title Adjoining properties
with the
problems most common?
Transfer/Deed of
80. POLARIS permits the user to find - "Individual parcel" Land?
property by what information? (referenced by a
88. What standard Charge/Mortgage of Land form
Property Identification
form is used to
Number or PIN)
register a
- Individual name
mortgage under
- Municipal address
either the
- Mapping
Registry or Land
- Registered
Titles system?
instrument number
- Condominium plan 89. What standard Discharge of Charge/Mortgage form
- Plan of Subdivision form is used to
discharge a
81. What are the 2 types of maps used - Block Index Map
mortgage under
in the POLARIS system? - Property Index Map
either the
82. What are the 3 different databases - Title Index Database Registry or Land
that Teraview accesses within - Property Index Titles system?
POLARIS? Database
90. What is a A blank form used to register any
- Image Database
Document documents that are not a transfer, charge
General? or discharge. It's used in a variety of
circumstances associated with property
titles, such as notices of liens on a
property or a registration of a power of
attorney.

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 Humber Real Estate - Course 1, Module 5: Introducing the
Real Estate and Business Brokers Act (REBBA)

1. What activities ARE - Attend a listing or offer presentation in 4. Does a person trading in Yes, as the exemption only
permitted without a a support role with a salesperson (i.e. seasonal / vacation rentals applies to a person who
license? taking photos or measuring rooms) and commercial leases trades solely for the purpose
- Set up listing files, complete require registration? of arranging leases under the
marketing sheets, submit listings & Residential Tenancies Act.
changes to the MLS
5. When can a salesperson When they are notified in
- Witness a seller or buyer signature
begin trading in real estate? writing that they are
- Schedule appts for a broker /
registered with RECO.
salesperson
- Draft offers based on directions of a 6. When there is an application - Substantial unpaid debts
broker / salesperson for registration or renewal and have not shown financial
- Provide listing info to consumers (i.e. of a broker's license, what responsibility in resolving the
a flyer) might become an issue? matter
- Prepare promo material or place "For - Unpaid judgements
Sale" or "Sold" sign on property - Bankruptcy
- Install lockboxes - Personal insolvency
- Attend open house w/broker or - Past conduct (that they may
salesperson not conduct business with
integrity, honesty and in
2. What activities are - Be active participant in listing or offer
accordance with the law)
NOT permitted presentation
- Pending criminal charges
without a license? - Explain or advise seller on changes to
- Whether a license or
the listing agreement
registration of any kind has
- Receive/acknowledge a notice on
been refused, suspended or
behalf of a seller or buyer
revoked
- Show a property to a buyer
- Non-disclosure or false
- Negotiate an offer w/seller or buyer
statements
- Answer questions re: the listing info
on a property 7. Can RECO refuse to grant No.
- Prospecting of any kind (i.e. phone registration if the applicant RECO cannot refuse
solicitation or door knocking) does not disclose they have registration on the
- Access a property to assist a buyer or substantial debt and are assumption that the applicant
third-party professional during an considering declaring is considering bankruptcy.
inspection bankruptcy? The applicant can have the
- Host an open house ability to rectify the situation.
- Blog about the real estate market 8. What are the first steps An initial screening process
3. Who is exempt - An auctioneer auctioning the property, when RECO receives a determines if a complaint is
from registration to equipment, livestock etc. of a retired complaint? frivolous, outside RECO's
trade in real farmer jurisdiction or could be
estate? - Full-time salaried employee at a new resolved informally.
home builder's site representing the 9. What style of discipline Progressive discipline
builder in negotiations does RECO use? 1st offence - Warning
- Lawyer settling an estate 2nd offence - Warning &
- Financial institution disposing of a Course
property under a mortgage default 3rd offence - Discipline
- Property owner selling their home hearing / potential fine of up
privately to $25k
- Property manager leasing an
10. When it comes to discipline - Award compensation or
apartment on behalf of a landlord
decisions, what does RECO damages to complainants
NOT have the power to do? - Cancel a contract between
a seller or buyer and a
brokerage

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11. What are the - Acknowledgement and 16. If a registrant is judged by The - An order for the
procedures the undertaking Discipline Committee of individual to take
Registrar of RECO can - Apply voluntary conditions breaching the Code of Ethics, educational courses
take when handling a - Request a meeting what is the result? - Pay a fine up to $50k and
complaint? - Mediate or resolve the complaint fix / impose costs for a
- Issue a written warning salesperson
- Require educational courses - For a brokerage, fines can
be up to $100k
12. What are the - Immediate suspension
procedures RECO (temporary suspension to protect 17. What can the Appeals Overturn, affirm or modify
imposes when there are the public) Committe do when making the order of the Discipline
more serious - Registrar proposal (i.e. revoking, judgements on appeals? Committee
complaints made? suspending or refusing to register
18. Are the disciplinary decisions No. Decisions are posted
along with the reasons for this
of RECO private? publicly on the RECO
action)
website.
- Director's action (The Director
may appoint investigators to 19. Are all breaches of any No. Only a potential
conduct investigations under the section of the Act and the contravention of the Code
Act, issue a search warrant or a Code of Ethics referred to a of Ethics is referred to the
freeze order) Discipline Committee? Discipline Committee.
- Provincial offences prosecution 20. What is a real estate trust To deposit all money
(conducting trials, sentencing & account used for? received by the brokerage
appeals - individuals can be fined in trust for other persons in
up to $50k and $250k for connection with the
corporations) brokerage's trade.
- Refer to a law enforcement
21. All transactions in a real Broker of Record
agency (fraud is one example of a
estate trust account must be
serious offence that can ultimately
authorized and cheques
lead to criminal prosecution)
signed by by who?
13. What are the reasons - Ensuring compliance with REBBA
22. How is a buyer's deposit Held in a real estate trust
RECO can conduct a - Dealing with a complaint
safeguarded before closing? account and covered by
brokerage inspection? - Ensuring a registrant remains
the RECO Insurance
entitled to registration
Program.
14. What specific rights - To inspect a brokerage during
23. Under REBBA, a brokerage 5
does RECO have during reasonable hours
must deposit funds into the
brokerage inspections? - To be provided access to all
real estate trust account
documents, records, money and
within how many business
other valuables relevant to the
days of receipt?
inspection.
- No person may obstruct an 24. Which brokerage usually holds The listing brokerage
inspector in carrying out their the buyer's deposit?
duties. 25. How quickly should funds from As soon as possible. 5
15. If a registrant is The Discipline Committee (of 3 or a buyer be deposited? days is the absolutely
accused of violating the more members) maximum only.
Code of Ethics, who is
assigned to evaluate
the case?

Humber Real Estate Course 1 248

26. If a transaction does not - Seller and buyer signing a 37. Can a salesperson charge No
close, the deposit funds can mutual release or direction commission based on the
only be disbursed how? agreeing to the disbursement difference between the price
- A court order authorizing listed for sale and what the
the disbursement if the seller property sells for?
and buyer did not agree
38. If a salesperson either sells Full disclosure to all other
27. Who is paid any interest The beneficial owner of the their own home (direct parties prior to making an
earned on the deposit trust money (the interest rate interest ) or sells a home for a offer. The salesperson must
earned in an interest- and who gets paid the interest friend/family member or obtain written
bearing trust account? must be disclosed in the partner/shareholder of the acknowledgement from the
Agreement of Purchase and corporation selling (indirect other parties that they have
Sale) interest ), what steps must the received the required
salesperson first take? disclosure before the offer
28. What are the acceptable Cheque, money order or bank
can proceed.
forms of payment for a draft
deposit? 39. During a purchase or sale by - That the individual is a
a registrant of their own salesperson, broker or
29. Can the amount of a No. Deposits must be exactly
property (or one they have a brokerage
deposit cheque be rounded the amount listed in the
direct or indirect interest in), - All known facts that may
up to the nearest $10? Agreement of Purchase and
what needs to be included in affect the value of the
Sale.
the disclosure statement to property
30. Can a cheque be post- No. all other parties? - Details of any third-party
dated for a deposit? negotiations for the
31. If a co-operating brokerage A receipt subsequent sale of the
receives a deposit that is property
director to another party The salesperson must
(i.e. the listing brokerage), obtain written
what should be obtained? acknowledgement from the
other parties that they have
32. Who should a buyer's The offer identifies who the
received the required
cheque be made out to? deposit holder will be
disclosure before the offer
(typically the listing
can proceed.
brokerage).
40. A salesperson sells a home Yes. This is an example of
33. Can a salesperson be No.
and a family member an indirect interest. The
employed by more than
happens to be the lender the salesperson must obtain
one brokerage (i.e. in
buyer chooses to use for the written acknowledgement
different areas?)
transaction. Is disclosure of from the other parties that
34. A commission percentage True interest required to all they have received the
can decrease as the sale parties involved before the required disclosure before
price goes up. offer is made? the offer can proceed.
True or False?
41. Registrants who falsify The Provincial Offences Act
35. A commission percentage False. A commission based information may have their
can increase as the sale on the difference between the registration suspended or
price goes up. listing price and the selling revoked, or may face charges
True or False? price is not allowed. under what Act?
36. What is the 'Prevailing Rate' The commission that is
in reference to commission commonly charged for the
amounts? particular services based on
the property type in the
marketplace.

Humber Real Estate Course 1 249

53. What is the - For clients, the obligation is greater 58. What are - Comparative rankings (e.g. "#1 brokerage in
difference when and involves taking reasonable steps potential town")
providing material to determine and then disclose such problem - Claims about business volume or trading
facts to a client vs. facts based on the property being areas activity (e.g. "Over 100 transactions last year")
a customer? sold or purchased. commonly - Promises of savings or rebates (e.g. "$1000
- For customers, the obligation is seen in cash back")
limited to disclosing only those advertising? - Honours or awards received by the registrant
material facts that are known, or ought (e.g. "President's Award")
to be known, by the salesperson.
59. How do you Be specific and site sources for everything (i.e.
Customers are required to make their
avoid the instead of saying "#1 in Grovetown", say "#1
own inquiries to determine if any
common team for units sold in Grovetown" Based on
material fact affects a property.
pitfalls of Grovetown local listing service statistics for
54. What are some - Condition of the structure such as a advertising? 2018 for the ABC Brokerage team consisting of
examples of roof leak, mechanical or electrical four salespersons)
material facts? deficiencies or basement water
seepage
- Environmental hazards such as
asbestos, lead, mould or a previous
use as a grow-op
- Building measurements or lot size
- Property taxes
- Zoning
- Previous, present and potential use
of the property or surrounding
properties
- Easements or restrictions registered
on title
- Renovations completed without
permits or inspections
- Events that have occurred on the
property such as a death, suicide or
break-in
55. Can a salesperson Yes, the salesperson can give general
provide advice on information about the potential
the implications of implications, but the salesperson
an inappropriate cannot provide legal advice on the
termination of a termination and needs to recommend
tenant under the the person seeks third party expert for
Residential further details about the specific
Tenancies Act? situation at hand.
56. What are the 4 - Identification of registrant
requirements for - Identification of Individuals
advertising? - Identification of brokerage
- Description of registrant
57. What is considered Knowingly making incorrect
an inaccurate statements regarding either a trade in
representation real estate or in respect of the services
when it comes to provided by the registrant.
advertising?

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42. Other than - The Competition Act 48. What is an inaccurate One that is true, but is vague or
REBBA, what - The Personal Information Protection and representation in incomplete and may or may not be
statutes Electronic Documents Act (PIPEDA) advertising? misleading and/or deceptive.
enforce - Trademark & copyright statutes (i.e. an ad states "great views and
regulation of - Provincial laws relating to consumer only steps from the water", but the
advertising? protection property doesn't have water
- Municipal by-laws regarding things such as frontage, has no direct access to the
signage water from the property and the
view is mostly blocked by a large
43. What is the A notice or announcement in a public
hi-rise building.)
definition of medium that promotes a registrant's business,
'Advertising'? services or real estate trades, including 49. What steps can the - Order the false advertising to
broadcast, print, electronic media or Registrar take if they immediately stop
publication on the Internet including websites think that false, - Order the registrant to retract the
& social media. misleading or statement or publish a correction of
deceptive statements equal prominence to the original
44. What are - Misleading statement
have been made in advertising
some things - False statement
advertising? - Order the registrant to do both
you need to - Deceptive statement
above
avoid - Inaccurate representation
carefully 50. What are the - Fines of up to $50k for a
when potential outcomes if salesperson and $250k for a
advertising? a registrant is corporation
charged with - Up to 2 years prison time
45. What is a One that causes a reader to have a wrong
falsifying information - A court can order a convicted
misleading idea or impression. It doesn't require all
or counselling others person to pay compensation or
statement in readers be misled for the statement to be
to do so? restitution to the affected parties
advertising? considered misleading. (i.e. "new roof
shingles" is subjective and could be 51. What are some ways - Stop and think
misleading ... is that new today or new last of providing - Ask your broker of record or
year?) Conscientious and manager
Competent Service? - Understand your advice will be
46. What is a One that can be shown to be factually
relied upon
false incorrect. Generally, there is little room for
- Always do things the right way
statement in interpretation.
- Continue to learn and be aware of
advertising? (i.e. a listing salesperson does not verify
changes affecting the profession
information given to them by the seller. The
- Search past discipline decisions on
salesperson advertises the property
the RECO website
generates a rental income of $5400 per
month instead of actual rental income of 52. What is a 'Material With respect to the acquisition or
$4700 per month.) Fact'? disposition of an interest in real
estate, a fact that would affect a
47. What is a One that causes something to be easily
reasonable person's decision to
deceptive mistaken for something else or causes the
acquire or dispose of the interest.
statement in reader to believe something that is not true. A
advertising? statement that is purposefully misleading.
(i.e. a property is advertised as a "spacious
lot" with a photo showing the home with a
large vacant property to the rear, but the
property belongs to the municipality, not the
seller.)

Humber Real Estate Course 1 251

91. E-registration refers to what? Title documents being created, submitted and maintained in
electronic form.
92. What documents must be registered in-person on paper in the - Crown grants
traditional way? - Declaration and description for the registration of a
condominium
- Documents that are too large for the e-registration system
93. What are the steps of E-Registration? - Draft document (i.e. Transfer/Deed of Land)
- Document forwarded to receiving lawyer who updates/amends
if necessary
- Solicitors confirm document is acceptable electronically (i.e.
electronic signature)
- Both solicitors electronically release the document for
registration

Humber Real Estate Course 1 252

 Humber Real Estate - Course 1, Module 6: Introducing the Key
Legislation & Regulations
Study online at [Link]/_75vz88

1. What is a contract? A legally binding agreement between two or more persons, competent at law to enter into
such agreement, for consideration or value, to do or refrain from doing something lawful.
2. True or false? An oral contract for False. Any contract in real estate is required to be in writing.
the acquisition or disposition of
any interest in the land is
enforceable.
3. When drafting a contract, what - Must be in writing to be enforceable by law (the only exception is when a contract is verbal
does The Statute of Frauds but parties begin to complete the contract, then it could be enforceable)
require?
4. What are the contract - The seller is not bound to produce any abstract of title, deed, copy of a deed or other
requirements of The Vendors and evidence of title except as are in the seller's possession or control
Purchasers Act? - The buyer shall search the title at the buyer's own expense and shall make any objections in
writing within 30 days from making of the contract
- The seller has 30 days in which to remove any objection made to the title. If the seller is
unable or unwilling and the buyer doesn't waive the request, the seller may cancel the contract
and return any deposit made, but is not otherwise liable to the buyer
- Taxes, local improvements, insurance premiums, rent and interest shall be adjusted as at the
date of closing
- The conveyance (legal process of transferring of ownership from one party to another) shall
be prepared by the seller and the mortgage, if any, by the buyer; the buyer pays for the
registration of the transfer/deed and the seller pays for the discharge of the mortgage
- The buyer is entitled to possession or the receipt of rent and profits upon the date of closing
the transaction
5. What are the contract - All agreements are reduced to writing at the earliest opportunity, signed by the brokerage
requirements of The Real Estate and submitted to the seller or buyer for signature
and Business Brokers Act? - That registrants use their best efforts to ensure that all parties to an agreement receive a copy
as soon as possible and ensure that deposits and other related documents (i.e. notice removing
conditions) be delivered in accordance with the agreement of purchase and sale
6. What is 'Evidence of a Contract'? Since a contract is the legal relationship created between the parties, the contract document is
the written record and therefore a reflection of the mutual commitment agreed to by the
contracting parties. A document, such as an Agreement of Purchase and Sale, is evidence of a
contract.
7. Define the 'Parol Evidence Rule' In the determination of contractual disputes, this rule provides that oral evidence is
inadmissible in court to vary or contradict the terms of a written contract, except in a case of
fraud or mistake.
8. What is 'Privity of Contract'? The general rule that only parties to a contract can enforce it or be bound by it.
(i.e. A salesperson signs an agreement as a witness, but because the contract is between the
buyer and seller, only they are privy to the contract.)
9. What are the essential elements - Genuine intention (Both parties must consent to the terms of the contract)
of a contract? - Lawful object (The contractual arrangement must be lawful)
- Definite & clear (The subject and terms of the agreement must be stated clearly)
- Consideration (Each party must receive something of value)
- Capacity of the parties (The parties entering into a contract must be legally competent & of
sound mind and legal after of majority to make the contract)
- Offer and acceptance (There must be mutual agreement between the parties)
10. What type of persons may be - Mentally incompetent
deemed incapable of contracting? - Intoxicated
- Non est factum (did they know what they were signing?)
- Minor under 18 (can decide to go forward with the contract or choose to end it)

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11. In a partnership, can Yes. Any partner may bind the other partners in a transaction during the ordinary course of business.
one partner sign a
contact on behalf of the
other person?
12. A binding contract Exchange
requires an ___________ of
something between the
parties.
13. What does "Signing You cannot change your mind.
under seal" mean?
14. What are the types of - Common mistake
mistakes when - Mutual mistake
considering law? - Unilateral mistake
15. Define a 'Common When both parties to the contract know the intention of the other, accept it, but are mistaken about an
Mistake' underlying fact. (ie. Both seller & buyer believe a property includes a right-of-way near a body of water,
but in fact it doesn't. Basically an innocent mistake made by both parties and they both though the same
thing was true.)
16. Define a 'Mutual When the parties misunderstand each other and are at cross-purposes, or have a contrary understanding.
Mistake' (i.e. A seller owns two lots on opposite sides of a lake. Buyer believes they are buying the South shore
property while the seller believes the North shore property is being sold. Not intentional, but differing
opinions on the mistake.)
17. Define a 'Unilateral When one party is mistaken about a fundamental aspect of a contract. (i.e. The buyer believes the lot is
Mistake' approx. 1 acre; the seller is aware of this mistaken belief but remains silent. The buyer proceeds with the
purchase based on the mistaken fact.)
18. In regard to a contract, A false statement of fact or assertion made by one party to the other, before or at the time of contracting,
what is regarding some existing fact, matter or circumstance affecting the contract or its object.
'Misrepresentation'?
19. What are the types of - Innocent misrepresentation
Misrepresentation? - Fraudulent misrepresentation
- Negligent misrepresentation
20. Define 'Innocent A statement by one party of a fact that is wrong, but is honestly believed to the true.
misrepresentation'
21. Define the 3 elements - Made with the knowledge of its falsity or with reckless disregard for its truth
of 'Fraudulent - The purpose must have been to induce the other party to enter a contract
misrepresentation' - Must have been relied on to the other party's prejudice
(Deceived party by resist enforcement of the contract and seek damages for the conduct)
22. Define 'Negligent A misrepresentation without reasonable verification of its accuracy and the person who is misled may
misrepresentation' bring a lawsuit for damages.
23. What is 'Duress or The improper use of one person's power over another to induce that person into a contract.
Undue Influence'?
24. What is 'Failure to The non-disclosure of material latent defects might invalidate a contract (i.e. mould infestation in the attic)
Disclose'?
25. What is a 'Latent A defect that is not easily observable. (i.e. mould infestation)
Defect'?
26. What is a 'Voidable A contract that is enforceable, valid and binding until rendered void. The offended party may choose to
Contract'? void the contract and treat it as being at an end, or treat it as existing and enforce it against the offending
party.

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27. What is considered a A breach that goes to the root of the contract.
'Fundamental Breach of Contract'?
28. What steps can the affected party - Accept the breach and treat themselves as released from further performance
take regarding a fundamental - Accept the breach and start an action for damages against the party who breached
breach of contract that goes to - Treat the contract as still in effect, and waive the breach
the root of the contract? - Seek other remedies if available
29. What steps can the affected party The impacted party can sue for damages without an option to discharge the contract. This is
take regarding a breach of sometimes referred to as a minor or compensable breach.
contract that does NOT go to the
root of the contract?
30. What are the remedies for a - Recission
breach of contract? - Damages
- Quantum meruit
- Specific performance
- Injunction
31. Define 'Recission' Involves the revocation or cancellation of a contract, the contract is set aside by the court.
32. Define 'Damages' Financial compensation arising as a result of the breach. The injured party must prove the
actual actual amount of their loss. They also have a general duty to make reasonable efforts to
mitigate that harm by taking steps, following the breach, in order to reduce the extent of the
loss.
33. Define 'Quantum Meruit' A reasonable sum for services rendered, as determined by the courts that directs payment to
the claiming party.
34. Define 'Specific Performance' An exceptional remedy. It's an order of the court directing the party in a breach to carry-out a
specific obligation. This is a discretionary remedy and not an absolute right. It may be awarded
only where damages are not an adequate remedy, the contract is fair and just, and the injured
party acts promptly and fairly in making their claim.
35. Define 'Injunction' A court order stopping a party from doing something wrongful.
36. What are the 5 common methods - Performance (contract is fulfilled)
to terminate a contract involving - Mutual Agreement (both parties agree to void the contract)
real property? - Impossibility of Performance (i.e. cottage burns down before closing)
- Operation of Law (i.e. death of a party, bankruptcy, unauthorized unilateral alteration of
contractual terms or in other words, one party changes the terms of the contract without
approval)
- Breach
37. What is the purpose of the To allow any legal relationship that requires paper documents to be considered legal and
Electronic Commerce Act? enforceable when in an electronic format.
38. Which contract documents of a All agreements relating to trading, including representation agreements, agreements of
brokerage can be signed purchase and sale and agreement of lease.
electronically?
39. What is leading practice before Obtaining consent for using electronic signatures in writing.
using electronic signatures?
40. What are the requirements for - Must be reliable for the purpose of identifying the person
using an electronic signature? - The association of the electronic signature with the relevant electronic document must be
reliable
- The electronic signature meets the prescribed requirements, if any, as to method
- The electronic signature meets the prescribed information technology standards
41. Is witnessing electronic signatures No
required?

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42. What are the 2 information types PIPEDA - Personal Information (easily associated info such as name, residential address)
applies to? - Sensitive Personal Information (a subset of personal information dealing with
sensitive data; i.e. financial info, and physical / mental condition)
43. Who at the brokerage ensures compliance with Designated Privacy Officer
PIPEDA?
44. What is the type of information that PIPEDA Personal Facts (Non-identifiable facts; storage of personal facts is not regulated,
does not apply to? provided info is anonymous.)
45. What are the 10 Principles of Privacy? 1. Accountability
2. Identifying purposes
3. Consent
4. Limiting collection
5. Limiting use, disclosure and retention
6. Accuracy
7. Safeguards
8. Openness
9. Individual access
10. Challenging compliance
46. What does Part I of the Family Law Act deal The orderly distribution of assets following a marriage breakdown or the death
with? of a spouse with some exclusions (i.e. property inherited or received as a gift).
47. What does Part II of the Family Law Act deal Details the rights of the non-owner spouse to equal possession of the
with? matrimonial home and sets out rights of possession of that home, the
designation of a matrimonial home, and limitations on ability to encumber or
dispose of the matrimonial home.
48. How is 'Matrimonial Home' defined in The Family Every property in which a person has an interest and that is or, if the spouses
Law Act? have separated, was at the time of separation ordinarily occupied by the person
and his or her spouse as their family residence is their matrimonial home.
49. What is the difference between the Any family asset not considered to be the matrimonial home, with exceptions
'Matrimonial Home' and 'Matrimonial Property'? such as inheritances and insurance settlements.
50. Is it possible to have more than one matrimonial Yes. However, they have the ability to designate only one as the matrimonial
home? home if they choose to do so.
51. What does it mean to designate a residence as The property is deemed to be the only family residence at the time of
a 'Matrimonial Home'? designation.
52. What happens if only one spouse completes a All of the remaining matrimonial homes retain their status despite that
designation for a 'Matrimonial Home'? registration.
53. If a property is a designated matrimonial home, Consent to the transaction.
to avoid any issues regarding conflicting
ownership, you must always ensure that all
parties do what?
54. Are both spouses required to sign all the legal Yes
documents, such as the Listing Agreement?
55. What are the titles used when a married couple The party who owns the property will sign the documents as a seller and the
signs a legal document for a house that is only non-owner will provide spousal consent.
in one of their names?
56. Is it required to have spousal consent for the No, because written spousal consent is only required to sell the matrimonial
sale of investment properties? home, not matrimonial property.

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57. What are the rights of - If a property is designated as a matrimonial home, both spouses have an equal right to its possession.
the non-titled spouse - To be notified of any proceedings by a third-party that could affect that possessory right.
in a matrimonial - The ability to bring a court application to determine ownership rights and to restrain the other spouse from
home? disposing of the property without consent.
58. What is the definition Partners who have cohabited for more than three years, or who cohabitate and are the natural or adoptive
of 'Common-Law parents of a child or children. Spouse also includes same-sex partners, as per the Family Law Act.
Spouse'?
59. In a common law No. As such, if one common-law spouse owns the home, they can sell or mortgage it without the common-
relationship, is the law spouse's permission whereas this is expressly prohibited with a matrimonial home.
family home
considered a
matrimonial home?
60. What happens in a The registered owner may be required to make arrangements for satisfactory accommodation of the
common-law common-law spouse and/or provide support payments.
relationship in the
event that the family
home is sold and the
relationship
dissolved?
61. What is the aim of the To set out ground rules for land use planning in Ontario. It describes how land uses may be controlled and
Planning Act? who may control them.
62. What are the - Promote sustainable economic development in a healthy natural environment
purposes of the - Provide for a land use planning system led by provincial policy
Planning Act? - To integrate matters of provincial interest in provincial/municipal planning decisions
- Provide for planning processes that are fair by making them open, accessible, timely and efficient
- Encourage co-operation and co-ordination among various interests
- Recognize the decision-making authority and accountability of municipal councils in planning
63. Who does the The Minister of Municipal Affairs and Housing
Planning Act give
general
administrative control
of the land use
planning in Ontario
to?
64. What are the 3 types 1. Single-tier
of municipalities? 2. Upper-tier (in the two-tier municipality)
3. Lower-tier (in the two-tier municipality)
65. Describe a 'Single- One that assumes all municipal responsibilities set out under the Municipal Act and other provincial
Tier Municipality' legislation. Some examples of single-tier municipalities are the City of Toronto, Ottawa, Sault Ste. Marie, etc.
66. Describe an 'Upper- One formed by two or more lower-tier municipalities. Municipal responsibilities set out under the Municipal
Tier Municipality' Act and other provincial legislation and split between the upper-tier and lower-tier municipalities. Upper-tier
is typically the region, county or district. Upper-tier municipalities are responsible for preparation, adoption
and revision of the Official Plan, and the process of dividing and developing land. Examples of upper-tier
municipalities are counties such as the Wellington County, Grey County, or a regional municipality such as
Halton, Peel, Niagara, etc.

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67. Describe a Responsible for preparation, adoption and revision of the Official Plan and the adoption of zoning bylaws, interim
'Lower-Tier control bylaws, and other bylaws. Examples of lower-tier municipalities include the city of Cambridge, Mississauga,
Municipality' etc.
Where an upper-tier municipality exists, its council will often coordinate planning between the respective lower-tier
municipalities, as well as address matters for which it may be directly responsible, including roads and water/sewer
systems. In some instances, the upper-tier municipality may assume, by agreement, any of the planning
responsibilities of the lower-tier municipality. Otherwise the lower-tier municipality will handle land-use matters
within its jurisdiction, such as location, type and density of development.
68. What are the - Conservation and management of ecological systems, agriculture resources, natural resources, mineral resource
'Provincial base, and spaces of architectural, cultural, historical and archaeological significance
Interests' as - Orderly development of safe and healthy communities ensuring the accessibility for persons with disabilities to all
set out in the facilities and services
Planning Act? - Adequate provision and efficient use of communication, transportation, sewage and water services and waste
management systems
- Adequate provision and distribution of educational, health, social, cultural and recreational facilities, housing and
employment opportunities
- Resolution of planning conflicts involving public and private interests and the promotion of sustainable
development
- Promotion of built form that encourages a sense of place and provides spaces that are safe, attractive and vibrant
69. The 'Provincial - Support long-term planning for alternative and renewable energy sources such as wind power
Policy - Discourage urban sprawl across Ontario by supporting intensification in appropriate areas and the efficient use of
Statements' land and resources
include the - Support the protection of Ontario's environment through enhances policies, including stronger protection of the
policies to do province's water resources
what? - Protect the province's natural heritage resources including habitats, provincially significant wetlands on the
Canadian Shield, and coastal wetlands
- Promote development of affordable housing by requiring municipal targets
- Respond to concerns about the loss of farmland by prohibiting retirement lots and residential infilling on prime
agricultural lands
- Support and protect rural areas, by allowing development that is in keeping with the unique character of rural
Ontario
70. What issues - Where new housing, industry, offices and shops will be located
does 'The - What services like roads, watermains, sewers, parks and schools will be needed
Official Plan' - When and in what order parts of the community will grow
mainly deal
with?
71. Who approves The Minister of Municipal Affairs and Housing
'The Official
Plan'?
72. How long 10 to 15 years, and is reviewed every 5 to 10 years based on growth or the needs of the community.
does an
Official Plan
last?
73. What is the Designed to provide a framework for future decision-making and to respond in an organized fashion to trends and
purpose of influences currently experienced within that municipality or anticipated in the future.
the 'Official
Plan'?

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74. What are the goals of a 'Zoning Bylaw'? - Implements the objectives and policies of a municipality's Official Plan
- Is the legal method of managing land use and future development
- Protects the community from conflicting and possible dangerous land uses
- Controls the use of land and states exactly: How the land may be used, where
buildings can be located, the types of buildings permitted & use, lot sizes and
dimensions, parking requirements, building heights and setbacks from the street
75. What are the 6 general uses according to - Residential
Zoning Bylaw? - Commercial
- Industrial
- Institutional
- Open Space
- Agricultural
76. Where can you check for rules and The municipality and the local listing service
regulations about sign bylaws that may
impact you?
77. What are 3 common residential bylaws? - Sign bylaw
- Parking bylaw
- Noise bylaw
78. What committee is appointed by the The Land Division Committee
municipality in an upper-tier municipality to
handle things like granting minor variances /
consents?
79. What committee is appointed by the The Committee of Adjustment
municipality in a lower-tier municipality to
handle things like granting minor variances /
consents?
80. What are the functions of the Committee of - Granting of minor variances
Adjustment? - Providing consents to sever land
- Granting consents for the continuation of a non-conforming use
81. What is a 'Minor Variance'? A small or insignificant variation or slight modification concerning a particular
property in relation to bylaws in force within a municipality.
82. When is a rezoning application required? When a property owner wants to use a property in a manner not permitted in the
zoning bylaw, and applies to amend the zoning bylaw. This amendment will only
be considered by the council if the proposed use is in keeping with the Official
Plan.
83. What are the steps for a minor variance? - Pre-application consultation between the applicant and the municipal planners
- Preliminary project review to identify the zoning bylaw requirements and prepare
a list of the variances required by the proposal
{WITHIN 30 DAYS vvv}
- Submit a completed application & fee
- Scheduling of hearing and posting of a public notice sign
- Notice of public hearing and application details circulated to area property
owners
- Committee of Adjustment hearing and decision
{^^^ WITHIN 30 DAYS}
**Opportunity for a Third-Party appeal to the Local Planning Appeal Tribunal**
- Committee of Adjustment decision final and binding
- Satisfying conditions of approval (if required)

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84. What are the steps for Rezoning? - Pre-application consultation between applicant and municipal planners
- Submit complete application including relevant documents and the appropriate
fee
- Application circulation
- Preliminary Report to Community Council (if applicable)
- Response to applicant
- Application revision and resubmission
- Recirculation, consultation, further revisions, finalization and staff report (if
required)
- Public meeting at Community Council (if applicable)
- Council decision
- Opportunity for third-party appeal to Local Planning Approval Tribunal
*See module lesson for more detail
85. How long does a Rezoning application take 9 months
from start to finish?
86. What is considered a 'Non-Conforming A structure that is considered legal because they complied with the zoning bylaws
Structure'? at the time they were established. The non-conforming right is lost if the use is
discontinued. After cessation, the non-conforming use cannot be re-established.
87. If a Non-Conforming Structure is sold, will the Yes, as long as the non-conforming use continues.
status as an except to the zoning continue to
the new owner?
88. What is land severance? The approved division of a property into two or three new lots, or dividing in order
to add part of the property to an existing lot.
89. Land severance needs to be approved by The local municipality via a Land Division Committee (plan of subdivision) or a
who? Committee of Adjustments (smaller division of land).
90. What are the steps for land severance? - Consult & determine authority
- Complete application
- Application review
- Decision issued
- Appeal process (if applicable)
- Issuing of certificate
91. How long is typically given for the satisfying 1 year
of conditions when a conditional consent for
land severance is given?
92. After a severance application is completed 90
and submitted, the consent-granting authority
will issue a decision within how many days?
93. What are the 'Steps for Subdivision'? 1. Consult and Determine Authority
2. Prepare a Draft Plan
3. Complete Application
4. Approval Authority (Provide Notices and Hold Public Meetings)
5. Decision and Notice of Decision
6. Appeal Decision (if applicable)
7. Final Plan Approval > Decision by Local Planning Appeal Tribunal (LPAT)
8. Registration

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94. What are the requirements of a 'Draft Plan of - Boundaries of the land proposed to be subdivided
Subivision'? - Locations and names of proposed highways in the plan or highways
abutting the property
- Adjacent subdivisions and property in which the applicant has an interest
- Proposed use, dimensions and layout of proposed lots and existing uses
of adjoining lands
- Natural and artificial features (e.g. buildings) within or adjacent to the
proposed subdivison
- Soil conditions and existing contours/elevations
- Existing or planned municipal services
- Nature and extent of restrictions affecting the land, such as from the
Conservation Authority
95. After the completed application is received, how 180
many days does it take until the decision is made
regarding approval of the proposed subdivision?
96. What are the 'Final Plan Approval Steps For - Appeal decision (if applicable)
Subdivision? - Final plan approval
- Final plan registration
97. Which level of government is in charge of land use? Provincial & municipal
98. Describe The City of Toronto Act - Provides for the broad, permissive legislative framework for the city's
municipality and balances the interests of the province and the city
- Enables Toronto's council to better respond to the city's needs and pass
bylaws on matters ranging from health and safety to the city's economic,
social and environmental wellbeing, subject to certain limitations
- Enables determination of the appropriate mechanisms for delivering
municipal services, the appropriate levels of municipal spending and use of
fiscal tools to support the city's activities
- Helps to ensure that the city is accountable to the public and that the
processes for making decisions are transparent
99. What are the 10 Spheres of Influence of municipal 1. Public Utilities
government? 2. Waste Management
3. Transportation Systems (Other than Highways)
4. Highways (Public Roads) Including Parking & Traffic
5. Culture, Parks, Recreation & Heritage
6. Drainage & Floor Control (Except Storm Sewers)
7. Structures (Including Fences and Signs)
8. Parking (Other than Highways)
9. Animal Control
10. Economic Development Services

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 Humber Real Estate - Course 1, Module 7: Introducing Other
Relevant Legislation & Regulations

1. A brokerage, as a telemarketer, must register with the - Date and time of the request
National Do Not Call List (DNCL) but also maintain an internal - Consumer's name and contact information
do not call list. What should the internal do not call list - Applicable 10-digit phone number(s)
contain?
2. How long must numbers recorded on the internal Do Not A minimum of 3 years
Call List be kept?
3. In what situations can an exception be made to the DNCL? If the person ...
- Made an inquiry within the last six months
- Purchased, leased or rented a property through the brokerage in
the past 18 months
- Had a written agreement with the brokerage (i.e. a representation
agreement that is still in effect or expired within the past 18 months)
4. Before calling someone, should you reference the National Both
Do Not Call List or the Internal Do Not Call List?
5. If someone doesn't want to be called anymore, should you No. It's not a salesperson's responsibility. Add them instead to the
add them to the National Do Not Call List? Internal DNCL.
6. What is the goal of Canada's Anti-Spam Legislation (CASL)? To help create a safer and more secure online environment by
setting requirements for sending commercial electronic messages
(CEMs).
7. What is the definition of a 'Commercial Electronic Message'? Any electronic message that encourages participation in a
commercial activity regardless of whether there is an expectation
of profit.
8. Do direct messages sent to people via social media count as Yes
CEMs?
9. What does the Canadian Anti-Spam Legislation (CASL) not - Social media feeds (i.e. Twitter & Facebook wall posts)
apply to? - Websites / blogs
- Two-way voice communication between individuals
- Faxes and voice recordings sent to a telephone account (however
salespersons should be aware of names on the National DNCL)
10. What are the requirements to sending a Commercial Email - Obtain consent from the recipient
Message (CEM)? - Identify yourself (full contact details including address)
- Provide a means for the recipient to withdraw consent
11. What is 'Express Consent' when referring to CEMs? The recipient has opted in through an online or physical sign-up
form (such as a newsletter, by phone, at the point of purchase or
by responding to a contest).
12. Can express consent be obtained in writing only? No. Oral consent is acceptable but you may be asked to prove
consent later.
13. Can you use a check-box that is pre-checked to obtain No. Consent must be obtained through an opt-in mechanism rather
consent to send CEMs? than an opt-out mechanism. A pre-checked box for consent is not
permitted as this would assume consent where it was not intended.
14. How long after express consent is granted does it expire? Not until the recipient withdraws their consent.
15. What is 'Implied Consent' in relation to CEMs? Based on the brokerage or salesperson having a prior relationship
with the recipient.

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16. When is it - You or the brokerage have an existing business relationship with the recipient for the last 2 years
okay to send - A recipient made an enquiry within the last 6 months
CEMs using - You have an existing non-business relationship with the recipient for the last 2 years (i.e. fellow members of a club,
implied organization, etc.)
consent by - The recipient of a CEM has conspicuously published their email address online (on a website) or has disclosed
the recipient? their email address (i.e. via distribution of a business card) AND the content of the message relates to the recipient's
role in an official business capacity, and the recipient did not state implicitly that they did not want to receive CEMs
at that address
17. What - The referral must have been made by an individual who has an existing business relationship, non-business
conditions relationship, family relationship or personal relationship w/both the sender and recipient
must be met - The full name of the person making the referral and a statement that the CEM is being sent as a result of the
to send a referral must be included in the CEM
CEM to a - The CEM must contain the sender's identification information and an unsubscribe mechanism
referral? - You may only send 1 CEM. Any further CEMs will require consent from the recipient.
18. What sender - Identification of registrant
information - Identification of individuals
must be - Identification of brokerage
included in a - Description of registrant
CEM? * Same rules as advertising
19. Define the A federal statute that aims to protect fair competition and efficiency in the Canadian marketplace and protect
'Competition consumers against anti-competitive activities.
Act'
20. What does - Misleading advertising
the - Conspiracies
Competition - Price maintenance
Act prohibit? - Bid-rigging
21. According to Unlawful agreements between competitors to fix or increase prices, manipulate markets or in some way control
the output. (i.e. agreements to establish commission or other fees or amounts paid to co-operating brokerages).
Competition
Act, what is a
'Conspiracy'?
22. According to Involves a person attempting to influence prices either in an upward direction or by discouraging individuals who
the are offering lower prices. Also can be where a salespersons refuses to negotiate or deal with a competitor because
Competition of that competitor's pricing policy, commission structure or business model. (i.e. A salesperson does not show
Act, what is a listings of another brokerage that only offers $1 commission to the co-operating brokerage. Under the Code of
'Price Ethics, registrants MUST inform clients and customers of all properties that meet their search criteria, regardless of
Maintenance'? the amount of commission offered by the listing brokerage.
23. According to An agreement in response to a call or request for bids or tenders in which one or more bidders agree not to submit
the a bid, or two or more bidders agree to submit pre-arranged bids. This is a criminal offence. (i.e. A real estate
Competition brokerage agrees to submit a bid to perform services at an unreasonably high rate so that another brokerage will be
Act, what is a successful on this bid and so that the other brokerage will do the same for them at the next opportunity.)
'Bid-Rigging'?
24. What are the - Do not collude
3 best - Do not discriminate
practices to - Do not mislead
ensure
compliance
with the
Competition
Act?

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25. Is it acceptable to discuss your brokerage's No. This would be considered a violation of the Competition Act. You do not
commission structure with another registrant? know what another brokerage charges unless they advertise it, and you do not
need to know their business model.
26. What are some potential consequences / - Negative publicity for the brokerage and yourself
penalties if in contravention of Competition Act? - Lost time
- Criminal fines up to $25 million and civil fines up to $10 million
27. Define 'Capital Gains' Refers to the net increase in value of a capital property from the date the
property was purchased or the valuation date of Dec. 22, 1971 (whichever is
most recent), to the date the property is sold.
28. What is 'Capital Property'? Any item that, if sold, would result in a capital gain or a capital loss (such as
cottage, investment duplex, land, buildings, shares, bonds, funds and trust
units).
29. What is 'Business Income'? Income a person earned from an activity undertaken for profit (such as income
from a house painting or consulting business, or from rental income) but does
not include salaries a person received from an employer.
30. How are Capital Gains taxed differently than - With business income, the net income after deductive expenses is taxed.
Business Income? - With a capital gain, only 50% of the net proceeds is added to the income of
the taxpayer and taxed at the appropriate tax rate.
31. What factors are used to determine if a gain is a - Intention (what was the intention of the taxpayer when they purchased the
capital gain or business income? property?)
- Relationship to the taxpayer's business (is the taxpayer living there or do they
flip houses for a living?)
- Frequency of transaction (how often a taxpayer engages in the sale of capital
property)
- Nature of transaction and assets (mortgages are often judged under this test)
- Objects of the corporation (complicated and legal advice should be sought)
32. Does capital gains tax apply to the sale of a No
principal residence?
33. Define 'Principal Residence' A house, apartment in a duplex or apartment building or condominium, a
cottage, a houseboat, a trailer or mobile home, or a share in a co-operative
housing corporation, where a person usually lives.
34. Andy buys a house in 2010 and it's his principal Since the house was Andy's principal residence from 2010-2015, no taxation is
residence until 2015 when Andy moves into his applied to the capital gain during that time. However, any capital gain that
partner's condo and rents out his house. In 2020 accumulated between 2015 and 2020 would be taxed at 50% as it was no
Andy sells his house. longer Andy's principal residence.

How does capital gain taxation affect Andy

during the sale of the house?
35. How many principal residences can a person 1
have?
36. Why does the Income Tax Act impose the tax To ensure there are no outstanding tax obligations where the seller is a non-
obligation on the buyer of a property? resident of Canada.
37. How can the buyer demonstrate that they made Have the seller sign a statutory declaration that they are NOT a non-resident
reasonable enquiry and there is no tax liability (both at the time of signing the offer and upon sale completion).
concern to the buyer?

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38. How can a non-resident of They may pay the tax liability in advance of the completion of sale. The actual tax that the non-
Canada sell their Canadian resident owes is calculated using the estimated sale proceeds minus the property's "adjusted cost
property and take the tax base." Once the seller files the necessary documents and pays the required taxes, the Minister of
requirements off of the buyer? National Revenue issues a certificate. If the seller obtains this certificate before closing, then no
credit needs to be applied. As long as the buyer has demonstrated reasonable enquiry, there's no
tax liability concern to the buyer.
39. What is the "Adjusted Cost The adjusted cost base is the original price paid for the property plus any legal fees or
Base"? commissions and capital costs for any improvements made to the property.
40. What happens is a tax The buyer's lawyer will hold back 25% of the sale price in order to have the money to pay the
certificate is not received prior seller's tax liability and protect the buyer from being responsible for it.
to the completion of the sale
by a non-resident of Canada?
41. What happens if the buyer does The buy could become liable for the payment of taxes. This issue is not applicable when the
not consider the residency seller is a resident of Canada.
status of the seller and/or the
tax liability of the non-resident
seller, and pays full purchase
price to the seller?
42. What does the EPA stand for? Environmental Protection Act
43. What is the objective of the To promote sustainable development that benefits the present generation without compromising
Environmental Protection Act the future generation's ability to meet their own needs. The purpose of this legislation is to prevent
(EPA)? pollution and protect the environment and human health.
44. The EPA outlines processes, - The health of the environment is protected
assessments, tools and - Risks are assessed
regulations to ensure what? - Remediation is carried out
- Citizen participation is encouraged
45. What are the primary roles of - Works to promote clean and safe air, land and water.
The Ministry of the - Ensures that communities are kept healthy by protecting and improving all aspects of the
Environment, Conservation and environment
Parks?
46. What ministry administers and The Ministry of the Environment, Conservation and Parks
enforces the Environmental
Protection Act (EPA)?
47. Under the directive of the EPA, - Enter and search premises
what powers are officers given - Interview individuals
to ensure adherence to - Examine documents to ensure that violations are dealt with expediently
environmental regulations?
48. What permits/approvals can be - Permits relating to private water wells
issued by The Ministry of the - Approvals concerning herbicide use by cottage owners to control aquatic plant life
Environment, Conservation and - Remediation of contaminated lands
Parks? - Land development and associated sewage works
- Haulage of septic waste
- Air quality including the control of emissions
49. What are 3 major areas that The Pollution, Waste Management & Litter Management
Ministry of the Environment,
Conservation and Parks is
concerned with?

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50. Under the EPA, who must be notified if a spill - The Ministry of the Environment, Conservation and Parks
happens? - The affected municipality
51. According to the EPA, after notification of the spill Steps to prevent, eliminate and remedy the adverse effect of the spill and to
to the authorities, what are the next steps required restore the natural environment.
of the person responsible for a spill?
52. What are 4 ways to minimize risk concerning 1. Be well-informed
environmental issues? 2. Ensure honesty and fairness in negotiations
3. Draft accurate agreements/contracts
4. Seek expert advice when necessary
53. What is the purpose of an 'Environment Site To determine if there is any environmental contamination (such as petroleum)
Assessment'? and any contamination within the building (such as asbestos).
54. What are some examples of when an environment - There's a buried oil tank on the property
site assessment may be required during a - There's asbestos wrapping around a heating supply or return lines from a
residential resale? boiler
55. What does the certified environmental site assesor - Visits the property to obtain visual evidence of actual or potential
do during Phase 1 of an Environmental Site contamination
Assessment? - Reviews background documents, including historical and aerial photos and
title searches, and requests for information from the Ministry of the
Environment, Conservation and Parks and the relevant municipality
- Interviews site personnel, government officials and third parties
- Reports the findings and conclusions
56. What does the certified environmental site assesor - Confirms if an environmental problem exists (samples soil and groundwater
do during Phase 2 of an Environmental Site by on-site drilling)
Assessment? - Quantifies the extent of the contamination
- Suggests a remediation plan to resolve the issue
*NOTE: Phase 2 does not give a final, definitive conclusion on the
environmental state of a property, but it does provide a better understanding
of the condition of the land, groundwater and structures on the property.
57. What is accomplished during Phase 3 of an - Development of an environmental remediation strategy and work place,
Environmental Site Assessment? which will be carried out
- Remediation of the site (can take a short time or months or years to
complete)
- A report is written to confirm if the remediation was successful and if the site
meets the required guidelines
58. What details must be included in an official - Follow-up monitoring requirements for residual contaminants, if necessary
environmental clean-up final report? - Confirms contaminant removal, treatment and current status of the site
- If remediation of the site is not feasible, it may include a site-specific risk
assessment (SSRA) that defines the level of contamination and recognizes if
there may be a level of developable use with certain restrictions
59. Under the Planning Act, what policy outlines the Provincial Policy Statement
Ontario's stance on land use planning?
60. Name 3 provincial plans for land use in Ontario. - Greenbelt Plan
- Growth Plan for the Greater Golden Horseshoe
- Growth Plan for Northern Ontario
61. What are some defining characteristics of the - Diverse economy
Greater Golden Horseshoe? - Productive and desirable farmland due to its rich soil, moderate climate and
substantial water resources

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62. How do the Greenbelt Plan, the Oak Ridges - Determine where urbanization should not take place
Moraine Conservation Plan and the Niagara - Ensure that agricultural, ecological and hydrological features, areas and
Escarpment Plan work together? functions are protected
63. Define the Greenbelt Act - Protects approx. 1.8 million acres of environmentally sensitive and ecologically
important natural environments
- Includes (as of 2017) the Oak Ridges Moraine, the Niagara Escarpment, the
Parkway Belt West Plan Area & the Glenorchy Conservation Area
64. The Greenbelt is part of Ontario's _______ Plan Growth
65. What is the aim of the Endangered Species Act? To protect threatened plants, animals and their habitats that are at risk of
disappearing.
66. What are the categories of species under the - Extirpated (Exists somewhere in the world and at one time existed in the wild in
Endangered Species Act? Ontario but is now extinct in Ontario
- Endangered (Exists in the wild in Ontario but is facing possible extinction or
extirpation)
- Threatened (Exists in the wild in Ontario and is not endangered, but steps need
to be taken to address factors threatening it)
Special concern: Exists in the wild in Ontario and is not endangered or
threatened, but biological characteristics and/or identified threats may cause it
to become threatened or endangered
67. Plants and animals classified as being Protected
endangered, threatened or extirpated are
automatically ___________ from harm or
harassment.
68. A permit is required to build a new subdivision - When the project received approval
or install infrastructure that will affect a newly - When the work began or will begin
protected species or habitat. The permit - The project's current status
establishes that certain rules are followed. The - The project type
rules depend on what? - When a species was classified as threatened or endangered
69. What is a salesperson's responsibility when it To take reasonable steps to determine if there are any endangered species on a
comes to dealing with endangered or protected site, and if present, then disclose at the earliest practical opportunity before
species? proceeding with a transaction. NOTE: Even in a customer service relationship
with a seller or buyer, you will be required to disclose the material facts at the
earliest practical opportunity.
70. What is the role of Natural Resources Canada To help Canadians take advantage of the advancements of technology,
(NRCan)? specifically in terms of lowering energy costs, reducing emissions and
increasing the value of assets.
71. Who administers the Energy Efficiency Act and Natural Resources Canada (NRCan)
other Energy Efficiency regulations?
72. What are the categories of energy-using - Household appliances
products? - Water heaters
- Heating and air-conditioning equipment
- Lighting products
- Electronic products
- Refrigeration equipment
- Other commercial and industrial products

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73. Describe some characteristics of an energy-efficient home - Well insulated and airtight with high-efficiency heating and cooling
appliances that reduce energy bills
- Furnished with low-flow showers and toilets that lower water usage
and heating costs
- Using energy-efficient lighting and appliances that lower energy
and electricity consumption, including ones identified by the ENERGY
STAR program
74. What are some ways to make a home more energy- - Use a programmable thermostat
efficient? - Seal air leaks
- Replace old bulbs
- Insulate hot and cold water pipes
- Upgrade the exhaust fans
- Use water-saving faucets, showerheads and toilets
75. Green building refers to house construction techniques - Energy-efficiency and effective use of resources
that promote what? - Durability in component products
- Sound environmental planning
76. What are the main benefits of living in a green house or - Lower on-going energy costs despite a higher cost in the beginning
building? - Good for the environment
- Higher resale value than a non-efficient house
77. What is the name of the independent rating system that Leadership in Energy and Environmental Design (LEED)
benchmarks the design, construction and functioning of
green buildings that is run by the non-profit organization
Canada Green Building Council (CaGBC)?
78. What is the R-2000 program? A program launched in the 1980s to encourage energy-efficient and
environmentally responsible home construction.
79. Who managed the R-2000 program? Office of Energy Efficiency (Natural Resources Canada)
80. What is required in new home builds according to the R- - Technical performance standards exceeding energy efficient
2000 program? requirements set out in building codes
- Also considering additional factors, such as indoor air quality and
sustainable material sourcing
81. What are 4 factors that help make a building green? - Ecological considerations
- Indoor air quality
- Waste recycling/diversion
- Energy efficiency
82. What is EnerGuide? The official mark of the Government of Canada used to rate and
label consumer items, such as houses, light-duty vehicles and some
energy-using products, based on their energy efficiency.
83. Who administers the EnerGuide and Energy Star Office of Energy Efficiency
programs?
84. What does it mean if an appliance has an EnerGuide label That the appliance has undergone federal standards testing and the
attached? label will show the estimated energy use for a particular appliance in
relation to other appliances of similar size and type. It does NOT
mean the appliance is necessarily energy-efficient.

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85. How does EnerGuide for houses work? - Gives a rating between 1-100 (1 = significant air leakage, limited or no
insulation and high energy consumpton while a home near 100 = well-
insulated, properly ventilated and requires no purchased energy, such as a
solar house)
- Older homes are typically in the 50-65 range with R-2000 being above 80
86. What 5 components does EnerGuide for Houses - Airtightness and thermal resistance of the building envelope
take into account when evaluating a home? - Heating system
- Domestic water supply
- Ventilation system(s)
- Permanently installed renewable energy equipment
87. What does the Energy Star symbol indicate? The most energy-efficient products in the marketplace.
88. What's required before a new home can receive an - Meet technical specifications set out under Energy Star
Energy Star qualification? - Built by an Energy Star qualified builder
89. What is the minimum acceptable rating of an 80
Energy Star home?
90. Where can an EnerGuide for houses label typically Affixed to the electrical panel.
be found?
91. Describe The Ontario New Home Warranties Plan Requires every builder and vendor selling new homes to warrant that a
Act home is:
- Constructed in an efficient and competent manner
- Free from defects in material
- Fit for habitation
- Constructed in accordance with the Ontario Building Code
- Free of major structural defects
- Subject to any other warranties as prescribed by the regulations
92. What is the name of the not-for-profit corporation The Tarion Warranty Corporation
that administers the Ontario New Home Warranties
Plan Act on behalf of the provincial government?
93. What is Tarion's main responsibility? Ensuring that builders meet minimum service standards when fixing or
otherwise resolving warrantied items under the statutory warranty coverage.
94. What is the total warranty coverage available on $300k total:
each home or condominium unit and how is the - $15k max applies to warrantied damage that involves environmentally
amount broken allocated? harmful substances
- $25k max involving septic systems
- Condo common elements are covered for a total of $50k times the number
of units to a max of $2.5m
- Total coverage for a condo project (units & common elements combined)
is capped at $50m
95. What is a salesperson's responsibility in regard to a Checking to see if the builder or vendor under consideration is registered
new home's warranty? with Tarion.
96. When does a warranty period begin on a new The date of possession (except for the warranty on a condo's common
home? elements, which begins upon the registration of the condo declaration and
description)
97. What time periods cover a new home warranty? One-year, Two-year and Seven-year
98. What does one-year warranty protection include? - Home is free from defects in construction and materials
- Fit to live in
- Meets the Ontario Building Code requirements
- Has no major structural defects as outlined under the seven-year warranty

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99. What does two-year warranty protection - Water seepage through the basement or foundation walls (in condos this protection
include? includes all below-ground areas, such as parking garages)
- Defects in materials and work (incl. caulking around windows and doors) so that the
building envelope prevents water penetration
- Defects in electrical, plumbing and heating delivery/distribution systems
- Detachment, displacement or deterioration of exterior cladding, leading to
detachment or serious deterioration
- Ontario Building Code violations re: health and safety provisions
- Major structural defects as outlined under the seven-year warranty
100. What does seven-year warranty protection Major structural defects as defined in the Ontario New Home Warranties Plan Act,
include? including:
- Any defect in materials or work that results in the failure of a load-bearing part of
the home's structure
- Any defect in materials or work that significantly and adversely affects the buyer's
use of the building as a home
101. What information should you acquire when - Detailed warranty information about the property from the builder or the seller so
working with a buyer of a new home? you can counsel your buyer appropriately
- The builder's registration number and the home's enrolment number (condos should
have an enrolment number for each unit and a number for the common elements)
102. What happens to a new home's warranty if The warranty stays with the home up to the end of the warranty period.
it's sold?
103. Where can you find the builder's name, - The Certificate of Completion and Possession sticker located on the electrical
enrolment number and warranty start date panel
for a newer home? - The Warranty Certificate
- By contacting Tarion
104. What are the types of properties that are - Temporary or seasonal homes (i.e. cottages not built on permanent foundations and
excluded under the Ontario New Home not insulated sufficiently to enable year-round living)
Warranties Plan Act? - Homes build on existing footings/foundations
- Homes that have been lived in or rented out by the builder or vendor before the
sale to the first owner
- Existing rental residential buildings converted to and registered as residential
condos
- Residential properties held for investment purposes by limited partnerships in which
investors purchase interests or units (the purchase of a partnership interest doesn't fall
under the definition of a home)
- Homes in which the contractor only erects the shell and the owner
completes/finishes the interior work
- An owner owning a vacant lot and contracting the building of a home through
subcontractors because the owner is not deemed to be a builder
105. What is the goal of the Ontario Building Sets out minimum standards for building design and provisions regarding building
Code? safety, fire protection and structural integrity.
106. Who administers the Ontario Building The Building and Development Branch of the Ministry of Municipal Affairs and
Code? Housing
107. How often is the Ontario Building Code Every 5 years
reviewed and amended?

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108. What type of projects are building - Finishing previously unfinished spaces such as family rooms, recreation rooms or attics
permits usually required for? - Repairing and underpinning of foundations
- Installation of pools
- Construction of decks in excess of a specific height above the ground
- Construction of any building in excess of 10 square meters
- Construction of attached and detached garages
- Renovation or repair of a building
109. What are some common projects - Building an uncovered platform or deck where the deck isn't attached to a residential
that do NOT require a building building and doesn't exceed a specified height
permit? - Mounting a skylight in a building that does not exceed 3 floors
- Re-cladding a building that doesn't exceed 3 floors with non-combustible material
- Installing or replacing a sump pump, cooling and heating systems, air purifiers and other
similar home appliances
- Adding or replacing insulation, a furnace or a boiler
- Replacing windows, doors or existing roofing materials, provided no structural work is
required
- Repairing and replacing plumbing fixtures
110. What are the consequences of The municipality can impose heavy fines on the homeowner ($50k for a first offence and up
violating the Ontario Building Code to $100k for subsequent offences) or order the structure to be removed. In extreme cases,
if a homeowner builds without a the municipality can deem the house unfit to live in.
required permit?
111. If a permit wasn't obtained at the No. Even if all the work appears to have been performed as specified in the Building Code,
time an improvement was made to a a home inspector cannot see behind finished walls to see if the framing, wiring and plumbing
house, is it a good idea to hire a meets the code. There is still a legal requirement for the owner or contractor to obtain a
home inspector to evaluate the building permit for the improvement.
property?
112. Define the Ontario Fire Code Provides for the safety of occupants in existing buildings through the elimination or control
of fire hazards in and around buildings, the maintenance of life safety systems in buildings,
and the establishment of a fire safety plan in those buildings where necessary.
113. Define The Fire Protection and The enabling legislation for the Ontario Fire Code, this Act sets out responsibilities for fire
Prevention Act protection services; the duties and powers of the fire marshal and those appointed by the
fire marshal; rights of entry in emergencies and fire investigations; inspections and related
orders, offences and enforcement; recovery of costs; and employment and labour relations
issues.
114. What are requirements of The - All buildings occupied by tenants and visited by members of the public should have fire
Ontario Fire Code? alarm systems, smoke and heat detectors, carbon monoxide alarms and sprinkler systems.
Fire doors and their automatic closers must be kept operational.
- Where possible, the alarm system should be connected to a monitoring station so there is
immediate response in the event of a fire
- Hand-held fire extinguishers and fire hoses should be installed on every floor
- Fire prevention systems and equipment installed in a building should be inspected
regularly to ensure they are operational.
115. What is the difference between the - The Ontario Building Code applies to construction of new buildings and alterations,
Ontario Building Code and the additions and changes within existing buildings
Ontario Fire Code? - The Ontario Fire Code regulates fire safety in existing structures (including two-unit
residential occupancies i.e. a house with a basement apartment)

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116. What are the retrofit requirements for a single-family - Smoke Alarms: Must be placed outside bedroom areas and on
home equipped with fuel burning appliances such as oil, every level of the dwelling including the basement
gas and propane? - Carbon Monoxide Alarms: Must be adjacent to each sleeping area
of each floor
- Containment: Having adequate separation between residential units
to protect occupants living in a unit from a fire occurring in the other
unit
- Means of Egress: Having at least 2 exits from the unit, such as a
door to the staircase and a window that is easily accessible and
large enough for the occupants to climb out
- Electrical Safety: Having a satisfactory inspection of the electrical
wiring by an Electrical Safety Authority inspector before obtaining
retrofit status for an accessory apartment. Once any deficiencies are
correct, the Electrical Safety Authority inspector will re-inspect the
unit and issue a certificate
117. What are the potential consequences for homeowners or $360 fine or a fine of up to $50k for an individual and $100k for a
landlords not meeting smoke alarm requirements (other corporation
than potential smoke inhalation or burning to death)?
118. Where does the Ontario Fire Code require carbon Adjacent to each sleeping area where:
monoxide alarms for condos or apartment buildings? - The unit contains a fuel-burning appliance or fireplace within the
suite
- The unit has a common wall or common floor / ceiling assembly
with a storage garage or a service room containing a fuel-burning
appliance
119. When does a landlord need to test the carbon monoxide - Annually and after every change in tenancy
alarm? - After the battery is replaced if the alarm is battery-operated
- After any change is made to an electrical circuit, if the alarm is
connected to an electrical circuit
120. A potential buyer asks his salesperson about an To consult with the fire department and identify places where the
unoccupied house he would like to purchase with the alarms need to be installed, after the transaction has been
intent to rent it out to a tenant. When viewing the home, completed.
the salesperson notices the absence of smoke alarms.
What should he advise the buyer?
121. What are the primary activities of The Electrical Safety - Identifying and targeting leading causes of electrical safety risk
Authority? - Ensuring compliance with regulations
- Promoting awareness of electrical safety
- Providing education and training about electrical safety
- Collaborating with stakeholders, such as contractors, consumers
and businesses, to improve the state of electrical safety in Ontario
122. What organization provides inspection services to ensure The Electrical Safety Authority
electrical safety in Ontario homes and commercial and
industrial installations?
123. What kind of inspections does The Electrical Safety - Wiring inspections (electrical work in all new construction and
Authority conduct? renovations must be inspected as required)
- General inspections (A visual inspection of a family or residence
will identify whether any electrical defects need to be corrected)
- Inspection certificates (A record confirming that the electrical
installation(s) in the home meet the requirements of the Ontario
Electrical Safety Code will be issued upon conditions being met

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124. When is an electrical - Before new services can be connected to the local electrical distribution system
inspection required? - After upgrades are done to the electrical service
- Before a customer whose electrical service has been disconnected for six months can be
reconnected
- Before power can be reconnected at a property that has experienced a fire
- For obtaining insurance on a property
125. Who issues electrical The Electrical Safety Authority (ESA)
permits?
126. What are the steps for - Hire a licensed electrical contractor
obtaining an electrical - Apply for a permit (no later than 48 hours before the start of the electrical work and must be
permit? obtained by the party doing the electrical work. Note: A homeowner should NOT take out a permit on
behalf of a contractor, however the homeowner must ensure any work is done according to the
Ontario Electrical Safety Code)
- Submit a request for inspection (as with a permit, only the party doing the electrical work can apply
for an inspection)
- Obtain a Certificate of Inspection (issued to the permit holder once the electrical work has passed
inspection)
127. What are 2 types of - Aluminum wiring
electrical wiring that were - Knob-and-Tube wiring
popular in homes built in
the 1960s and 1970s?
128. What is the newest form Copper wiring
of electrical wiring?
129. What does TSSA stand Technical Standards and Safety Authority
for?
130. What is the Technical Regulating all aboveground fuel storage tanks.
Standards and Safety
Authority responsible for?
131. The TSSA reports to who? The Ministry of Government and Consumer Services
132. What do the regulatory Installation, testing, maintenance, repair, removal, replacement, inspection and use of appliances,
controls under the equipment, components and accessories where fuel oil is to be used as fuel.
Technical Standards and
Safety Act, 2001 apply to?
133. How can a homeowner Submit an Underground Fuel Oil Application Form to the TSSA. After approval, the TSSA issues a
register an underground registration number that the homeowner can provide to the fuel distributor to access fuel supply.
fuel storage tank?
134. What is the danger of an It may begin to corrode over time, leading to situations where fuel may leak from the tank and seep
underground fuel storage into the ground, contaminating soil and groundwater. This can cause serious damage to the
tank? environment and may require costs environmental clean-up.
135. What steps does the TSSA Underground fuel storage tanks must be upgraded with specific leak and spill prevention equipment or
require to safeguard be removed. All tanks currently in use most likely will have been upgraded to the required standards.
against oil leakages? However, this would not apply to tanks that have been abandoned and whose location is unknown.
136. Is a homeowner allowed No. Only a TSSA-registered contractor is allowed to install, repair and/or remove an underground fuel
to remove an storage tank, and needs to be certified as a Petroleum Equipment Mechanic 2 to work on underground
underground fuel storage fuel storage tanks. A homeowner must verify the contractor's registration number before hiring them for
tank? any work relating to an underground fuel storage tank.
Note: The contractor should also be able to take care of its disposal.

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137. What steps should a homeowner take if an oil - Contact a TSSA-registerd fuel oil contractor to help find and stop the leak
leakage happens? and clean-up any leaked fuel oil
- Call the Spills Action Centre of the Ministry of the Environment, Conservation
and Parks
138. Why is it important to report a fuel leak as early - The earlier a leak is detected and remedial measures are taken, the lower the
as possible? impact on the environment
- Clean-up costs can also be minimized at the early stages of a leak
- Costs would be the homeowner's responsibility but their insurance policy
may cover all or a portion of the costs
139. What are some signs that a house may have (or at - Pipes sticking out of the ground
one time in the past had) an underground fuel - Indications of oil leakage
storage tank? - If the oil supply line to the furnace or hot water tank runs below the
basement floor
140. If a seller is unsure about the potential existence Recommend they hire a home inspector or an environmental site assessor to
of an underground fuel storage tank, how should investigate.
you advise them?
141. What are 4 ways a salesperson can be cautious - Verify if the property has an underground fuel storage tank
when dealing with a property that they suspect - Provide tips to the property owner to maintain the underground fuel storage
or know has an underground fuel storage tank? tank
- Disclose the existence of the underground fuel storage tank to the buyer
- When representing a buyer, draft a clause within the offer address the storage
tank (i.e. seller agrees to removal and testing of surrounding area for
contamination and agrees to remedy before sale is complete)
142. Kristy inherited a house from her grandfather a Yes. According to the Income Tax Act, Kristy is liable to pay capital gains tax
few years ago. She has been renting the house because she inherited the house, it was not her principal residence, and she
but now wants to sell it. Will capital gains tax be used it to generate rental income.
applied to the sale?
143. If an oil spill is suspected on a property, what In case of a suspected oil spill, a Phase 2 assessment may be sufficient. At the
phase of environmental site assessment would end of the Phase 2 assessment, the accredited environmental consultant can
be required? advice if a Phase 3 assessment is required.
144. Does having ENERGY STAR appliances contribute No. The ENERGY STAR rating on an appliance indicates the energy
to a low carbon footprint of a property? consumption for the appliance but does not indicate that the property will
have a low carbon footprint. It only provides a mechanism to make energy-
efficient choices to save money on energy bills.
145. Is a house purchased for rental purposes eligible Yes
for warranty coverage under the Ontario New
Home Warranties Plan?

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