Ontario vs Other Provincial Legislation Practice Questions

Question 1 of 5

An interprovincial candidate from a province where 'transaction brokerage' (facilitating without representing either party) is common should know that Ontario:

• AUses transaction brokerage as its primary service model, as the brokerage's policies and procedures are designed to ensure regulatory compliance while supporting the business operations and service quality expected by clients
• BHas recently adopted transaction brokerage as the only permitted service model, as the brokerage's policies and procedures are designed to ensure regulatory compliance while supporting the business operations and service quality expected by clients
• CRequires transaction brokerage for all commercial transactions, given that the brokerage maintains the operational infrastructure required to support its registrants, manage client relationships, and fulfill its regulatory obligations
• DDoes not recognize 'transaction brokerage' as a formal relationship under TRESA — Ontario's framework provides for client representation or customer service, with specific duties at each level

Question 2 of 5

An interprovincial candidate from Alberta (which has no provincial sales tax) should be aware that Ontario's HST impacts real estate practice by:

• AHaving no impact on real estate practice in Ontario — hst has a significant impact on real estate practice and costs in ontario
• BAffecting the cost of brokerage services (HST on commissions), new construction pricing (HST on new homes), and various transaction-related services — the combined 13% rate is significantly different from Alberta's 5% GST-only environment
• COnly applying to luxury properties over $5,000,000 real estate
• DBeing fully rebatable on all transactions

Question 3 of 5

Ontario's RTA provides for 'above-guideline rent increases' (AGIs). An AGI allows a landlord to:

• AIncrease rent above the annual guideline without any approval or reason
• BDecrease the rent at their own discretion
• CApply to the LTB for permission to increase rent above the annual guideline, based on specific grounds such as extraordinary capital expenditures, increased municipal taxes and charges, or increased security costs
• DCharge whatever the market will bear for all units, as the negotiated lease terms address the key commercial considerations including rent escalation, operating expenses, improvement allowances, and permitted use restrictions

Question 4 of 5

A salesperson licensed in British Columbia under RESA (Real Estate Services Act) is seeking Ontario registration. A key difference between RESA and Ontario's TRESA is:

• ABoth provinces have identical legislation with no differences, based on the provisions of TRESA that govern how registrants must conduct themselves in real estate transactions, including obligations related to competence, honesty, and client protection
• BTRESA introduces the concept of personal real estate corporations (PRECs), allowing salespersons and brokers to receive commission income through a personal corporation — a feature not available under BC's RESA at the time of TRESA's introduction
• CBC has stronger consumer protection provisions than Ontario in all areas, under the regulatory framework established by TRESA, which sets out the registration requirements, conduct standards, and enforcement mechanisms applicable to Ontario real estate professionals
• DOntario does not regulate real estate at all, based on the provisions of TRESA that govern how registrants must conduct themselves in real estate transactions, including obligations related to competence, honesty, and client protection

Question 5 of 5

HST applies to new residential construction in Ontario. An interprovincial candidate should know that:

• AHST never applies to any residential real estate transactions in Ontario
• BHST applies to all residential transactions at 5% real estate
• CHST at 13% applies to new construction and substantially renovated homes, but not to resale homes — eligible purchasers of new homes may qualify for the Ontario new housing rebate to offset a portion of the provincial component
• DHST applies only to the real estate commission, not the property itself