Humber/Ontario Real Estate Course 1 Exam Practice

According to the Real Estate and Business Brokers Act, who must be designated as the broker of record?

1. The broker and salesperson must jointly designate the broker of record

2. A broker employed by the brokerage

3. A broker of record must be designated only for large brokerages

4. A salesperson employed by the brokerage

5. A senior salesperson within the brokerage

6. Any licensed individual within the brokerage

The correct answer is: A broker employed by the brokerage

The correct choice stems from the requirement established by the Real Estate and Business Brokers Act that the broker of record must be a licensed broker engaged by the brokerage. This individual assumes responsibility for the operation and management of the brokerage, ensuring compliance with relevant regulations and overseeing the conduct of all licensed salespersons within the firm. Other potential choices don't align with the legal framework outlined in the Act. For instance, designating a salesperson or any licensed individual who isn't a broker would undermine the fundamental purpose of the broker of record, which is to have a professional equipped with the necessary qualifications and responsibilities to manage the brokerage effectively. Similarly, the idea that this role must only apply to larger brokerages contradicts the requirements, as all brokerages must designate a broker of record regardless of their size. The emphasis on employing a broker embodies the intention of maintaining industry standards and ensuring accountability in real estate practices.