What is the minimum amount of professional liability insurance required for licensed real estate salespersons in Ontario?
Correct Answer
A) $1,000,000
Under RECO regulations, all licensed salespersons and brokers in Ontario must maintain a minimum of $1,000,000 in professional liability insurance coverage. This insurance protects against claims arising from errors and omissions in professional services.
Why This Is the Correct Answer
Under Ontario's Real Estate and Business Brokers Act (REBBA) and RECO regulations, all licensed real estate salespersons and brokers must maintain a minimum of $1,000,000 in professional liability insurance coverage. This mandatory insurance protects against claims arising from errors and omissions in the provision of professional real estate services, ensuring consumer protection and maintaining industry standards.
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