Humber/Ontario Real Estate Course 1 Exam Practice

A person who leases property under the Residential Tenancies Act is:

1. Exempt under REBBA.

2. Required to be registered with the Ontario Real Estate Association.

3. Deemed to be a property manager and must be registered under REBBA.

4. Exempt under REBBA and is also exempt if he or she leases commercial property under the Commercial Tenancies Act.

5. Required to be registered as a landlord.

6. Required to have a property management license.

The correct answer is: Required to be registered with the Ontario Real Estate Association.

The concept at work in this scenario revolves around the regulations set forth by the Real Estate and Business Brokers Act (REBBA) and the Residential Tenancies Act. A person who leases property under the Residential Tenancies Act typically does not engage in the business of real estate trading, which REBBA governs. When interpreting the choices, it is important to acknowledge that there is no requirement for someone leasing residential property on their own behalf or managing their own rental units to be registered as a real estate professional. Instead, they operate under different legal frameworks that do not classify them as real estate agents or brokers. Therefore, the understanding that a person leasing property under the Residential Tenancies Act is primarily partaking in a private arrangement and is not conducting business within the mandate of REBBA leads to the conclusion that they do not need to register with any real estate governing authorities like the Ontario Real Estate Association. In contrast, those who manage properties for others or operate as business entities in real estate transactions would be obligated to register and comply with the associated laws, which is not the case for an individual simply leasing property for personal use. This distinction elucidates why the other choices don't align with the regulatory framework governing residential leases.