RecoRealEstate Practice Test
Free · 150 Questions.

Question 1

Under TRESA Phase 2 in Ontario, what document MUST a registrant provide and explain to a consumer before providing any services or assistance?

• A. The municipal zoning compliance clearance form
• B. The mandatory RECO Information Guide in accordance with established provincial regulations and guidelines.
• C. A signed Agreement of Purchase and Sale template
• D. A formal property appraisal valuation certificate

Explanation: Under TRESA, registrants must provide the RECO Information Guide to all prospective clients and self-represented parties and explain its contents before providing any services.

Question 2

What assistance may a listing registrant provide to a Self-Represented Party (SRP) buyer interested in purchasing the listing?

• A. Services that facilitate the trade for the client (e.g., providing factual property info, conveying offers)
• B. Advice on what price the buyer should offer to beat competing bidders according to the standard operating procedures and code rules.
• C. Negotiation strategy on whether the buyer should waive their financing condition when operating in compliance with authorized requirements.
• D. An opinion on the fair market value of the seller's property before making an offer in accordance with established provincial regulations and guidelines.

Explanation: A registrant can only provide assistance to an SRP that benefits their client (e.g., answering factual questions, providing standard forms, conveying offers). They must NEVER give advice or opinions.

Question 3

In an Ontario Agreement of Purchase and Sale, what does the 'Irrevocable' clause establish?

• A. The statutory period during which a condominium buyer may rescind the contract according to the standard operating procedures and code rules.
• B. The date and time until which the offer remains open and binding for acceptance by the other party
• C. The final deadline by which the buyer must secure unconditional mortgage financing in accordance with established provincial regulations and guidelines.
• D. The date upon which the seller must physically vacate the residential premises as specified in the official candidate handbook and syllabus.

Explanation: The irrevocable clause sets the exact deadline (date and time) that the offer or counter-offer remains valid and open for acceptance without being withdrawn.

Question 4

In commercial leasing, what is a 'Triple Net Lease' (Net-Net-Net / NNN)?

• A. The tenant pays a single flat monthly rental sum and the landlord pays all building expenses
• B. The tenant pays base rent plus property taxes, building insurance, and common area maintenance (CAM)
• C. The landlord pays for all interior tenant improvements and maintenance costs as specified in the official candidate handbook and syllabus.
• D. The tenant is responsible for paying three times the standard municipal market rent rate

Explanation: In a triple net lease, the tenant pays base rent plus its proportionate share of building property taxes, building insurance, and common area maintenance / operating expenses.