What is the minimum amount of professional liability insurance required for licensed real estate salespersons in Ontario under RECO regulations?
Correct Answer
C) $1,000,000 per claim
RECO requires all licensed salespersons and brokers to maintain professional liability insurance coverage of at least $1,000,000 per claim to protect consumers from potential professional errors or omissions.
Why This Is the Correct Answer
Under RECO regulations, all licensed real estate salespersons and brokers in Ontario must maintain professional liability insurance coverage of at least $1,000,000 per claim. This substantial coverage amount is mandated to protect consumers from potential financial losses resulting from professional errors, omissions, or negligent acts committed by real estate professionals during the course of their duties. The $1 million minimum ensures adequate consumer protection in Ontario's real estate market.
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- → During its monthly reconciliation, an Alberta brokerage finds trust funds that cannot be accounted for, and it has not yet determined how large the shortage is. Under Rule 89(1) of the RECA Rules, what must the broker do?
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