TRESA Phase 2 Updates Practice Questions

Question 1 of 5

A recent TRESA amendment addresses the registrant's obligation when discovering an error in a transaction document after signing. Salesperson Lin discovers that an incorrect legal description was included in the Agreement of Purchase and Sale. What is Lin's immediate obligation?

• ALin should correct the error herself by crossing out the incorrect information and initialling the change
• BLin should ignore the error since the agreement has already been signed and any changes would require starting the entire process over
• CLin must promptly disclose the error to all parties and their representatives, and ensure the appropriate corrective steps are taken, which may include an amendment to the agreement signed by all parties
• DLin should only inform her broker of record and leave the correction to the lawyers at closing

Question 2 of 5

TRESA amendments have introduced changes to how offers are handled in competitive bidding situations. Salesperson Javier is listing a property that has attracted multiple offers. Under the current rules, what is Javier's obligation regarding offer transparency?

• AJavier must disclose the contents of all competing offers to every buyer who has submitted an offer
• BJavier is prohibited from telling any buyer that other offers exist
• CJavier may disclose the number of competing offers only with the seller's written consent, but must not disclose the substance of any offer without the offering party's consent
• DJavier must automatically disclose all offer details to RECO's offer monitoring system before presenting them to the seller

Question 3 of 5

Updated compliance requirements address the handling of client funds when a brokerage closes or a registrant transfers to a new brokerage. What is the primary obligation regarding trust funds in a brokerage closure?

• ATrust funds may be distributed to the brokerage's creditors as part of the wind-down process
• BTrust funds can remain in the brokerage's bank account indefinitely after closure
• CTrust funds are automatically transferred to RECO when a brokerage closes
• DAll trust funds must be returned to the rightful owners or transferred to their designated recipients before the brokerage ceases operations, and RECO must be notified of the trust fund disposition plan

Question 4 of 5

Salesperson Priya receives a call from a client asking about a recent TRESA amendment that now requires disclosure of certain material facts about properties. The client wants to know which category of material facts must be disclosed even if the seller objects. Under the 2026 TRESA updates, which of the following must be disclosed regardless of the seller's wishes?

• AKnown material facts related to the physical condition of the property that affect health or safety
• BThe property's assessment value compared to neighbouring homes
• CThe seller's personal financial difficulties
• DThe seller's reason for selling the property

Question 5 of 5

A TRESA amendment has strengthened requirements for the disclosure of registrant interests in transactions. Broker Simone is purchasing an investment property for her personal portfolio. Which disclosure obligation applies?

• ASimone only needs to disclose her registrant status if the seller specifically asks whether she is a registrant
• BSimone must disclose in writing that she is a registered broker before any offer is made, regardless of whether the seller asks
• CSimone's registrant status is automatically disclosed through the MLS listing system, so no additional disclosure is required
• DSimone only needs to disclose her registrant status if she is also acting as an agent in the same transaction