Humber Real Estate Course 1 Practice Exam Questions

Course 1: Real Estate Essentials is the first course exam in the Humber Real Estate Salesperson Program. It establishes the regulatory and legal foundation that every subsequent course builds on. Students who underperform on Course 1 often struggle through the rest of the program because the terminology, legislation, and frameworks introduced here appear in every later exam.

This guide covers what Course 1 tests, the exam format, five sample questions with detailed explanations, and study strategies that actually work.

Key Takeaways

• Course 1 covers TRESA (Trust in Real Estate Services Act), RECO's regulatory framework, the Code of Ethics, property ownership types, land registration systems, planning and zoning, and environmental issues.
• The exam is 50 multiple-choice questions with a 2-hour time limit. You need 75% (38 out of 50) to pass.
• TRESA and RECO-related questions make up a significant portion of the exam. These are the highest-priority study topics.
• Practice questions that test application — not just recall — are the most effective preparation tool.
• ExamAce offers 870+ Course 1 practice questions aligned with the current curriculum.

What Course 1 Covers

Course 1 is the densest course in the salesperson program in terms of new concepts and terminology. Here is what each major topic area includes.

TRESA (Trust in Real Estate Services Act)

TRESA replaced the old REBBA legislation in December 2023. It governs how real estate professionals operate in Ontario. Course 1 covers:

• The purpose and structure of TRESA
• Designated representation — the new framework that replaced the old dual agency model
• Self-represented parties — how TRESA handles buyers or sellers who choose not to use an agent
• Registrant obligations under TRESA including disclosure, competence, and honest dealing
• Prohibited conduct and consequences for violations

TRESA questions are among the most common on the exam. If you understand TRESA well, you are in strong shape. For a deeper look, see our guide on TRESA and Ontario real estate.

RECO and the Regulatory Framework

• What RECO is and its mandate under TRESA
• Registration classes (salesperson, broker, broker of record)
• The disciplinary process — how complaints are filed, investigated, and resolved
• The role of the Discipline Committee and the Appeals Committee
• Insurance requirements (Errors and Omissions)

Code of Ethics and Standards of Business Practice

• Obligations of honesty, fairness, and integrity
• Duty to clients versus duty to the public
• Conflicts of interest and how to handle them
• Advertising standards
• Confidentiality obligations

Property Ownership and Rights

• Freehold vs. leasehold ownership
• Condominium ownership structure
• Co-operative ownership
• Forms of co-ownership: joint tenancy, tenancy in common
• Easements, rights-of-way, and restrictive covenants
• Bundle of rights concept

Land Description and Registration Systems

• Registry system vs. Land Titles system
• Legal descriptions: metes and bounds, lot and plan
• How title searches work
• The role of title insurance
• Parcel Register and Abstract of Title

Planning and Land Use Controls

• Official Plans and zoning bylaws
• Minor variances and consent to sever
• The Local Planning Appeal Tribunal (LPAT)
• Site plan control
• Development charges

Environmental Issues

• Disclosure obligations for known environmental problems
• Contaminated land and brownfield sites
• Designated substances (asbestos, lead, UFFI)
• Phase I and Phase II environmental assessments
• The registrant's duty when environmental concerns arise

Other Topics

• Residential property types and characteristics
• Legal responsibilities and obligations of registrants
• Introduction to real estate financing (mortgage basics)
• Property valuation basics (three approaches to value)

Course 1 Exam Format

Even though the exam is open-book, do not rely on looking everything up during the test. With 50 questions in 120 minutes, you have roughly 2 minutes and 24 seconds per question. Students who depend on their reference materials for every question consistently run out of time.

The most effective approach: know the material well enough to answer 35 to 40 questions from memory, and use your references only for the questions where you are genuinely unsure.

5 Sample Questions with Answers and Explanations

The following questions are representative of the type, format, and difficulty level you will encounter on the Course 1 exam. These are original questions created by ExamAce — not taken from any provider's exam bank.

---

Question 1

Under TRESA, a registrant who represents a buyer must disclose to the buyer any facts known to the registrant that could affect the buyer's decision to purchase the property. Which of the following would be an exception to this disclosure obligation?

A) The registrant knows the seller is under financial pressure and must sell quickly.

B) The registrant knows the property had a previous grow-op that has been professionally remediated and the buyer has not asked about the history.

C) The registrant is bound by a confidentiality agreement with a third party that prohibits sharing certain information.

D) There are no exceptions — the registrant must disclose all material facts known to them regardless of the source.

Answer: D

Explanation: Under TRESA, a registrant representing a buyer has an obligation to disclose all material facts known to them that could affect the buyer's decision. This duty exists regardless of how the registrant learned the information. A confidentiality agreement with a third party does not override the registrant's statutory obligation to their client under TRESA. Financial pressure, environmental history, and any other material facts must be disclosed. Students often confuse this with the duty of confidentiality owed to a seller client — but here, the registrant's client is the buyer, and the buyer's interests are paramount.

---

Question 2

A married couple purchases a home as joint tenants. One spouse dies. What happens to their interest in the property?

A) The deceased spouse's interest passes to their estate and is distributed according to their will.

B) The deceased spouse's interest automatically passes to the surviving spouse through the right of survivorship.

C) The property must be sold and the proceeds divided between the surviving spouse and the estate.

D) The surviving spouse must apply to the court to claim the deceased spouse's interest.

Answer: B

Explanation: Joint tenancy includes the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenant(s) — it does not go through the deceased's estate or will. This is one of the key distinctions between joint tenancy and tenancy in common. In tenancy in common, the deceased's share would go to their estate. This question tests one of the most commonly examined property ownership concepts in Course 1.

---

Question 3

Which land registration system guarantees the accuracy of the title as recorded and provides compensation if the title is found to be inaccurate?

A) The Registry system

B) The Land Titles system

C) Both systems provide identical guarantees

D) Neither system — title insurance is required for any guarantee

Answer: B

Explanation: The Land Titles system provides a government-backed guarantee of the accuracy of the title. If the registered title is found to contain errors, the Land Titles Assurance Fund provides compensation. The Registry system does not offer this guarantee — under the Registry system, the title is only as good as the chain of documents recorded, and it is the responsibility of the buyer (and their lawyer) to search and verify. Ontario has been progressively converting all land to the Land Titles system.

---

Question 4

A salesperson lists a property for sale and discovers during the listing process that the basement contains vermiculite insulation, which may contain asbestos. The seller instructs the salesperson not to mention the vermiculite to potential buyers. What should the salesperson do?

A) Follow the seller's instructions because the duty of confidentiality to the seller client takes priority.

B) Disclose the vermiculite to all potential buyers because material defects must be disclosed regardless of the seller's instructions.

C) Suggest the seller get the vermiculite tested, and only disclose if asbestos is confirmed.

D) Add a general "buyer beware" clause to the listing and let buyers do their own due diligence.

Answer: B

Explanation: Under TRESA and the RECO Code of Ethics, a registrant cannot conceal a known material defect, even at the client's instruction. The presence of vermiculite insulation that may contain asbestos is a material fact that could affect a buyer's decision to purchase. The registrant's obligation to disclose material facts to buyers overrides the duty of confidentiality to the seller in this situation. If the seller refuses to allow disclosure, the registrant should consider whether they can continue to represent the seller. This is a common exam scenario that tests the conflict between client instructions and regulatory obligations.

---

Question 5

RECO's Discipline Committee finds that a salesperson made a negligent misrepresentation in a transaction. Which of the following sanctions can the Discipline Committee impose?

A) A fine, a suspension of registration, or both

B) Criminal charges

C) A civil lawsuit for damages on behalf of the affected consumer

D) Automatic revocation of registration with no possibility of reinstatement

Answer: A

Explanation: The RECO Discipline Committee can impose a range of sanctions including fines (up to $50,000 for an individual), suspension or revocation of registration, conditions on registration, and mandatory education. It cannot file criminal charges (that is a police and Crown attorney matter) or initiate civil lawsuits (that is the consumer's responsibility). Registration revocation is possible but not automatic — it depends on the severity of the misconduct. For more on mistakes vs. misrepresentations, see our detailed guide on this topic.

---

Study Tips Specific to Course 1

Prioritize TRESA and RECO Content

If you have limited study time, focus here first. TRESA and the RECO regulatory framework are the highest-weight topics on the Course 1 exam, and they also appear in every subsequent exam. A strong foundation in TRESA pays dividends for the rest of the program.

Learn the Difference Between Similar Concepts

Course 1 is full of terms that sound similar but have distinct legal meanings:

• Joint tenancy vs. tenancy in common
• Registry system vs. Land Titles system
• Freehold vs. leasehold
• Easement vs. restrictive covenant
• Designated representation vs. self-represented party

The exam loves testing whether you can distinguish between these. Make a comparison chart for each pair and review it regularly.

Use Active Recall, Not Passive Reading

Reading the textbook is necessary but not sufficient. After reading a section, close the book and try to explain the key concepts in your own words. Then test yourself with practice questions. This active recall process strengthens memory far more effectively than re-reading highlighted passages.

Study the Legislation, Not Just the Summary

Your textbook summarizes TRESA, but reading the actual legislation at least once gives you a deeper understanding. When exam questions present unusual scenarios, students who understand the principles behind the rules outperform those who only memorized the textbook's bullet points.

Do Not Underestimate the Property Law Sections

Students often spend most of their time on TRESA and neglect property ownership, land registration, and planning law. These sections are not as exciting, but they make up a substantial portion of the exam. Land descriptions and the differences between registration systems are particularly common exam topics.

Practise Under Timed Conditions

Before your exam, do at least one full practice exam (50 questions, 2-hour timer). This helps you calibrate your pace and identify whether you tend to spend too long on difficult questions.

Get the Full Course 1 Question Bank

The five questions above are a small sample. Passing Course 1 consistently requires working through a large volume of practice questions that cover every topic area at exam-level difficulty.

ExamAce's Course 1 question bank includes 870+ practice questions covering all 12 topic areas, with detailed explanations for every answer. Questions are written for the current TRESA-based curriculum — not recycled from the old REBBA era.

---

ExamAce is not affiliated with RECO, Humber Polytechnic, Algonquin College, Fleming College, or Career College Group. Practice questions are original content created for educational purposes and do not contain actual exam questions from any provider.

Related on ExamAce

• Humber Real Estate Salesperson Program overview — full program structure, costs, and timeline
• Humber Course 2 study guide: residential transactions — what comes after Course 1
• Course 1: Real Estate Essentials practice questions — 870+ questions with detailed explanations