Brokerage Northstar Realty operates under the brokerage representation model. Salesperson Priya represents seller Hiroshi; her colleague Devon, at the same brokerage, represents buyer Elena, who wants to make an offer on Hiroshi's home. Which statement is correct?

The brokerage is in multiple representation and needs informed written consent from both Hiroshi and Elena to continue.

Multiple representation arises only if Priya and Devon agree to split the commission on the file.

There is no multiple representation, because Priya and Devon are two different salespersons.

Multiple representation only begins once an offer has actually been signed; until that point the two clients are merely prospects to the brokerage.

A buyer's offer is conditional on obtaining financing at a rate not exceeding 5.25 percent. The lender approves financing at 5.6 percent, and the buyer still wants to proceed. The appropriate document (where the clause allows it) is:

A waiver, since the condition was not met as written but the buyer still wants to proceed.

A mutual release ending the deal because financing came in above the rate specified.

An amendment changing the closing date to give the buyer time to seek a lower rate.

A notice of fulfilment, on the basis that the lender's approval satisfies the financing condition as written.

Seller Marco knows his Mississauga basement flooded twice from a sewer back-up in the past three years, causing structural water damage that he has covered with new drywall, flooring, and paint. Under Ontario common law, this concealed flooding history is best characterized as:

A known material latent defect Marco must disclose to the buyer.

A stigma that need not be disclosed now that the basement has been fully remediated.

A patent defect, since the freshly renovated basement is now plainly visible on showings.

A title defect that the buyer's lawyer should catch during a routine search.

A competing buyer's representative asks the salesperson to share the terms of the other offers. The seller's written direction says not to share content. The salesperson should:

Decline to share content, citing the seller's documented direction, while confirming the number of competing offers.

Share the terms as a professional courtesy, since cooperating salespersons routinely exchange this information to move deals along.

Reveal only the dollar figure in the leading offer, on the theory that a price alone does not count as protected offer content.

Tell the representative that there are no other offers in play right now.

Hassan, a salesperson representing a seller, presents the Information and Disclosure to Self-Represented Party form to an SRP buyer, Lucia, and explains its contents. Lucia refuses to sign. What is the most appropriate next step?

Note in the trade file that the form was provided and explained and that Lucia declined, then proceed.

Sign the acknowledgement form on Lucia's behalf so that the trade file appears to satisfy the requirement.

Conclude the SRP framework no longer applies and treat Lucia as a client.

Refuse to advance the transaction any further until Lucia changes her mind and agrees to sign the acknowledgement form.

Yusuf is buying a resale condominium and his salesperson recommends making the agreement conditional on reviewing the status certificate. The status certificate discloses:

The corporation's financial and governance status as it affects the unit being purchased.

The personal credit history and income of the current unit owner.

A municipal guarantee that the corporation's common expense fees will not rise for several years after closing.

A binding professional appraisal predicting the resale value the unit will reach at closing.

A brokerage receives a deposit cheque at 2:00 p.m. on a Tuesday, and no statutory holiday falls in the following week. Counting only business days, the deposit must be placed into the trust account by:

The following Tuesday, five business days after receipt, counting Wednesday, Thursday, Friday, Monday, and Tuesday.

The same Tuesday the cheque was received.

The Saturday of that same week.

The following Monday, four business days later.

Buyer client Hana Okafor is purchasing a 30-year-old detached resale home in Peterborough from an individual seller (not a builder, not previously used commercially). With respect to HST on the purchase price, the salesperson should explain that:

HST generally does not apply to the resale of a used residential home under the Excise Tax Act, though the buyer should still confirm the point with an accountant.

HST never applies to any residential property anywhere in Ontario.

HST is charged on every residential purchase in Ontario, so it will be added to this resale home's price regardless of the property's age or its prior ownership history.

HST applies here only if the buyer happens to be a non-resident of Canada.

Buyer Anika makes an offer on a rural property near Peterborough. The APS contains a 7-business-day condition for a satisfactory well-water potability test, solely for the buyer's benefit, with the usual waiver provision in her favour. Which of the following statements about this condition is the LEAST accurate?

Because the condition is Anika's alone, the seller may waive it for her if she fails to act in time.

Anika may waive the condition by written notice within the time period, even if the test results are unsatisfactory, and proceed to a firm contract.

If Anika delivers written notice that the condition is not fulfilled, the agreement is typically null and void and her deposit is returned to her without deduction.

If Anika delivers written notice of fulfilment by the deadline, the agreement becomes firm and moves on to closing.

Free Course 2 Practice Questions (Ontario Real Estate)

Course 2, Residential Real Estate Transactions, follows a home sale from start to finish: representing buyers and sellers, representation agreements, disclosure of material facts and defects, pricing, offers, conditions, deposits and closing. The 10 questions below are original scenario questions written for the Ontario program, chosen from across the course. Every option is explained, so you see the reasoning behind the right answer and the mistake behind each wrong one. Try each question before you look at the answer. For a study plan, see how to study Course 2.

How to use these questions

Choose your answer first, then open the explanation. Read every explanation, including on the questions you got right, because each wrong option is a mistake students commonly make on the exam. Where a question catches you out, revisit that topic before moving on. In the app, the same questions track your answers, and your progress carries over if you unlock the full course.

What the full Course 2 practice includes

The full Course 2 practice has hundreds of original questions across all twenty modules, each with every option explained, including the calculations the course uses. You also get:

Study notes for every module, written to match how the exam tests each topic.
Mock Exam mode, so you can practise under exam-style conditions.
Drill Wrong Answers, which brings back the questions you missed until they stick.
AI Tutor, to ask follow-up questions about any question or note.

Access lasts two months for a one-time price of $48.99. No subscription.

Try For Free · Unlock Course 2

Topics in Course 2

Representing clients: client duties, multiple representation and self-represented parties. See designated vs. multiple representation and self-represented parties under TRESA.
Representation agreements: the two permitted forms, required content and written directions. See who counts as a client in Ontario real estate.
Property types, ownership and planning: freehold, condominium and co-operative ownership, zoning and heritage. See status certificates for Ontario condos.
Factors in negotiations: client needs, material facts and defects the seller must disclose. See material fact vs. material latent defect.
The financial side: buyer and seller costs, land transfer tax, mortgages and qualifying ratios. See Ontario land transfer tax calculation.
Residential construction: structure, mechanical systems, and interior and exterior finishes.
Preparing to market a property: research, the walkthrough and measuring.
Property conditions and disclosure: environmental issues, hazards and stigmas. See latent vs. patent defects.
Value and listing price: opinions of value, comparables and adjustments. See Ontario real estate exam math.
Representing a seller: listing, advertising and open houses.
Working with buyers: viewings, due diligence and qualified third parties.
The offer process: conveying offers, deposits and trust money. See competing offers under TRESA.
The agreement of purchase and sale: its clauses, schedules and the offer plan.
Conditions: how to write them, and financing, inspection and other common conditions. See condition precedent vs. condition subsequent.
Counter-offers and competing offers: signing back and handling several offers at once.
Other sale documents and obligations: amendments, waivers, releases and FINTRAC. See waiver vs. notice of fulfilment and FINTRAC for salespersons.
Completing the transaction: title, closing costs, trust accounts and what happens when a deal does not close.

Frequently asked questions

Are these real exam questions? No. They are original questions written for the Ontario program by ExamPass. ExamPass is not affiliated with RECO, Meazure Learning or any course provider. The format and the judgment style mirror the real exam, so they are good practice for how questions are asked.

Which provider is this for? All of them. All four approved providers teach the same program and students write the same standardized exam, so these questions fit whichever provider you study with.

How many free questions are there? Ten for Course 2. All 10 are on this page with answers and explanations, and the same 10 are in Try For Free inside the app.

What happens when I unlock? You get the full Course 2 practice for two months: hundreds of questions, the Study notes, Mock Exam, Drill Wrong Answers and the AI Tutor. Anything you answered in Try For Free is kept.