Humber/Ontario Real Estate Course 1 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 1 Exam with our comprehensive quiz. Test your understanding with multiple choice questions and detailed explanations. Build confidence and knowledge for a successful exam experience!

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What must be true for a broker of record in a sole proprietorship brokerage?

The broker must be the owner.
The broker must be the chief operating officer (COO).
The broker can be any employed salesperson.
The broker is exempt from RECO registration.
The broker must handle all client communications.
The broker must have at least ten years of experience.

The correct answer is: The broker must be the owner.

The necessity for the broker of record in a sole proprietorship brokerage to be the owner aligns with the regulations governing real estate practices. In a sole proprietorship, the business is owned and operated by one individual, and this individual typically takes on the role of the broker of record. Being the owner allows the broker to maintain full responsibility for the operation of the brokerage and ensures compliance with regulatory requirements as mandated by real estate governing bodies. In this structure, there is no distinction between ownership and the operational role of the broker; thus, the broker must indeed be the owner to fulfill both responsibilities effectively. This ensures accountability and proper oversight of the brokerage's activities, particularly in client relations and legal compliance. The other possibilities present various roles or conditions that do not align with the structure and requirements of a sole proprietorship, where ownership and broker responsibilities are inherently combined.