Humber/Ontario Real Estate Course 1 Exam Practice

Which of the following statements is NOT correct about remuneration and expenses for real estate professionals?

1. The delay in receiving remuneration is typically longer for a residential transaction than a commercial transaction

2. Remuneration can be threatened even with a binding agreement due to possible legal cancellations after conditions are met

3. An ongoing expense for professionals is the RECO Insurance premium

4. Upon successful registration, agents must pay a registration fee to RECO

5. Agents are not required to undergo any mandatory continuing education

6. Remuneration is consistently paid on closing day

The correct answer is: The delay in receiving remuneration is typically longer for a residential transaction than a commercial transaction

The statement regarding the delay in receiving remuneration for residential transactions compared to commercial transactions is indeed correct. Typically, residential transactions have a defined process that can lead to a delay in remuneration. Commercial transactions, on the other hand, often involve more rigorous financial scrutiny and may finalize faster in terms of payment. Remuneration can indeed be compromised despite having a binding agreement, especially if unforeseen legal issues arise that could invalidate the agreement or conditions. This underscores the importance of ensuring all contractual obligations are thoroughly satisfied before expecting remuneration. Ongoing expenses such as the RECO (Real Estate Council of Ontario) insurance premium are standard for real estate professionals as part of their operational costs, emphasizing the need for protection in their practice. Real estate agents are required to pay a registration fee to RECO upon successful registration, which is a customary step for compliance within the industry. Continuing education is a crucial aspect of maintaining a real estate license, and agents are indeed required to engage in mandatory education to ensure they remain knowledgeable about changes and regulations in the field. Finally, while remuneration is often structured to be received at closing, it is not consistently guaranteed to occur on that specific day, as various factors can influence the timing of payment.