Humber/Ontario Real Estate Course 3 Exam Practice

What constitutes an invalid brokerage practice according to REBBA?

1. Inducing to break another brokerage agreement.

2. Providing value opinions without broker registration.

3. Making false ads.

4. Treating all parties with fairness.

5. Disclosing conflicts of interest.

6. Unilaterally terminating agreements for non-compliance.

The correct answer is: Providing value opinions without broker registration.

Providing value opinions without broker registration is considered an invalid brokerage practice according to the Real Estate and Business Brokers Act (REBBA) because it essentially involves giving professional advice or appraisals on property values without having met the required regulatory standards and qualifications. In Ontario, only registered individuals are legally allowed to represent themselves as real estate professionals and provide expert opinions regarding property values. This ensures that consumers receive accurate, legally compliant advice, which protects both clients and the integrity of the real estate profession. The importance of registration is crucial as it not only confirms that the individual has undergone necessary training and education, but it also provides a measure of accountability. Without this regulation, there would be a higher risk of misinformation and exploitation in the marketplace, which could have detrimental effects on buyers and sellers alike. On the other hand, inducing someone to break another brokerage agreement, making false ads, unilaterally terminating agreements for non-compliance, and the principles of treating all parties with fairness and disclosing conflicts of interest are all relevant practices, but they do not specifically pertain to registration requirements. They reflect other aspects of ethical and legal conduct in brokerage practices within the framework established by REBBA.