Humber/Ontario Real Estate Course 1 Exam Practice

Which statement about REBBA and the Code of Ethics is incorrect?

1. A registrant can be a salesperson, broker, or brokerage.

2. REBBA stands for Real Estate and Business Brokers Act.

3. A salesperson complying with the Code may recommend a well inspection.

4. The Code of Ethics applies to listing and selling activities.

The correct answer is: A salesperson complying with the Code may recommend a well inspection.

The statement regarding a salesperson complying with the Code may recommend a well inspection is incorrect because it misinterprets the scope of the Code of Ethics and the responsibilities it imposes on real estate professionals. While a salesperson may have the ability to suggest inspections as part of due diligence in real estate transactions, the recommendation should be made with caution and typically requires specialized knowledge. It’s crucial that real estate professionals provide referrals to qualified inspectors, ensuring that any advice is rooted in expertise rather than opinion. Thus, the assertion implies an oversight in understanding the complexities surrounding such recommendations, especially regarding inspections that could have long-term implications on a property’s value and safety. The other statements are accurate representations of the Real Estate and Business Brokers Act (REBBA) and its associated Code of Ethics. For instance, it is true that a registrant can hold titles such as salesperson, broker, or brokerage, which outlines the various roles individuals may have within the real estate sector. REBBA does indeed stand for Real Estate and Business Brokers Act, making it a foundational framework for the regulation of real estate practices in Ontario. Additionally, stating that the Code of Ethics applies to both listing and selling activities accurately reflects its comprehensive nature, ensuring that all facets of a real estate transaction align