In Ontario, what is the minimum amount of errors and omissions insurance coverage required for registered real estate salespersons?
Correct Answer
C) $1,000,000
Under RECO regulations, Ontario real estate salespersons must maintain errors and omissions insurance with minimum coverage of $1,000,000 per claim. This insurance protects both the registrant and consumers from financial losses due to professional errors.
Why This Is the Correct Answer
Option C ($1,000,000) is correct as per RECO regulations under the Real Estate and Business Brokers Act, 2002 (REBBA 2002) and Ontario Regulation 567/05. This regulation specifically mandates that all registered salespersons maintain errors and omissions insurance with minimum coverage of $1,000,000 per claim. This amount was established to provide adequate protection for the types of financial exposures typically encountered in real estate transactions while ensuring the insurance remains accessible to registrants.
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