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All TopicsCanadian Real Estate Exam

Residential Trading

Residential property types, buyer/seller representation, offer process, and closing procedures.

242 questions35 sub-topics
Difficulty Breakdown
Easy73 (30%)
Medium115 (48%)
Hard54 (22%)
Study Tips for Residential
  • •Walk through a complete residential transaction from listing to closing.
  • •Know the standard clauses and conditions used in your province.
  • •Understand the title search process and what to look for.
  • •Review the closing adjustments (property tax, utilities, rent) calculations.

Practice Questions

A Vancouver seller's home was once an illegal marijuana grow operation, but it was professionally remediated and no damage remains. Under BCFSA guidance, which statement about disclosure is correct?

MEDIUM

An Alberta acreage property has an existing surface lease for an oil company's pipeline. How does this affect the buyer's purchase and future use of the property?

HARD

In an Alberta residential transaction, what is the role of the buyer's lawyer?

EASY

In Alberta, what is the legal significance of the buyer's walk-through inspection conducted shortly before completion day?

HARD

When purchasing a strata unit in BC, a buyer's agent should review the strata documentation package. Which of the following documents is NOT typically part of this package?

MEDIUM

Under BC's Real Estate Services Rules, what is a 'material latent defect'?

EASY

What is title insurance, and how is it used in Alberta residential transactions?

MEDIUM

What is a Form B Information Certificate in BC strata property transactions?

EASY

What are the key items a buyer should verify when purchasing a property with a septic system in Alberta?

MEDIUM

A buyer is purchasing an acreage property in rural Alberta. What additional considerations apply compared to an urban residential purchase?

MEDIUM

A buyer is considering a unit in a 40-lot BC strata. The strata council says the owners voted by a 3/4 vote to waive the depreciation report. Which statement should the buyer's licensee rely on?

HARD

What is the significance of oil tank decommissioning in a BC residential transaction?

MEDIUM

In BC, what is 'building envelope' failure, commonly known as the 'leaky condo' crisis?

MEDIUM

A buyer is purchasing a condominium in Alberta and the reserve fund study reveals the fund is significantly underfunded. What are the potential implications for the buyer?

HARD

What is a 'subject clause' in a BC residential Contract of Purchase and Sale?

EASY

A buyer purchases a home in North Vancouver and discovers after closing that a decommissioned oil tank was not properly removed and has contaminated the soil. The seller checked 'Unknown' on the PDS regarding oil tanks. What is the buyer's legal position?

HARD

A buyer is purchasing an Alberta property where the RPR shows a garage encroaching 6 inches over the property line onto the neighbour's land. What are the options to resolve this issue before completion?

HARD

What does the Alberta New Home Warranty Program (ANHWP) provide?

EASY

When purchasing a condominium in Alberta, why is it critical to review the condominium documents before waiving conditions?

MEDIUM

What is the significance of the municipal compliance stamp on a Real Property Report (RPR) in Alberta?

MEDIUM

+ 12 more questions

Condominium Agreements(10)

A buyer lives in a proposed condominium unit under interim occupancy for 10 months before the declaration is registered. Her monthly occupancy fee includes an $80 projected reserve fund contribution. How much must the declarant hold in trust and remit to the corporation on registration?

HARD

A buyer signs an agreement to buy a pre-construction condominium unit from the declarant on March 3 and receives the disclosure statement and condominium guide that day. She receives her copy of the agreement signed by both parties on March 8. Under s. 73 of the Condominium Act, 1998, by what date must the declarant receive her notice of rescission?

HARD

A buyer signs an agreement of purchase and sale for a proposed unit with a declarant, but the declarant has not yet delivered the disclosure statement or the condominium guide. What is the legal status of the agreement?

MEDIUM

A buyer takes interim occupancy of a proposed condominium unit. The unpaid balance of the price is $480,000; assume the prescribed interest rate is 5% per year. Estimated municipal taxes for the unit are $250 a month and the projected common expense contribution is $450 a month. What is the maximum monthly occupancy fee the declarant may charge?

HARD

A buyer pays a $50,000 deposit to a declarant on a proposed condominium unit. Under s. 81 of the Condominium Act, 1998, when must the declarant give the buyer written evidence that the deposit is being held in trust as the Act requires?

MEDIUM

A buyer pays $60,000 in deposits under an agreement for a proposed condominium unit. The declarant secures them with a deposit receipt from the warranty corporation that limits its liability to the minimum the regulation allows. How is the $60,000 protected?

MEDIUM

A buyer's deposits on a proposed condominium unit are held until the unit is available for occupancy. Under s. 82 of the Condominium Act, 1998 and O. Reg. 48/01, at what rate must the declarant pay interest on those deposits?

MEDIUM

A pre-construction condominium agreement says the declarant may terminate it if the declaration is not registered within three years. Registration is delayed, and the declarant sends the buyer a termination notice on that ground alone. What is the legal position?

MEDIUM

After a buyer's cooling-off period has passed, the declarant changes the project in a way that a reasonable purchaser would regard as material to the decision to buy. What does the Condominium Act, 1998 provide?

EASY

A buyer's offer on a resale condominium unit is conditional on her lawyer reviewing the status certificate. Under s. 76 of the Condominium Act, 1998, who may request a status certificate from the corporation?

EASY

Condominium Leasing(8)

A condominium owner's lease with her tenant contains an extra term banning all pets. The condominium declaration contains no pet restriction, and the tenant brings home a cat. Under the Residential Tenancies Act, 2006, is the lease term enforceable?

EASY

A condominium tenant paid a $2,400 last month's rent deposit, and the rent has not changed. Assume the rent increase guideline in effect when the annual interest falls due is 2.5%. How much interest must the landlord pay or credit the tenant for that year?

MEDIUM

A salesperson is leasing a condominium unit for a landlord client. Under s. 83 of the Condominium Act, 1998, which documents must the owner give the tenant?

MEDIUM

A landlord rents her condominium unit month to month. She signs an agreement to sell it to a buyer who in good faith intends to live in it. Under the Residential Tenancies Act, 2006, what notice and compensation apply if the tenancy is ended for the buyer?

MEDIUM

A condominium owner signs a one-year lease of her unit on August 1. Under s. 83 of the Condominium Act, 1998, what must she do regarding the corporation?

MEDIUM

An owner leasing her condominium unit for $2,600 a month wants to collect last month's rent and a separate damage deposit from the tenant. Under the Residential Tenancies Act, 2006, what may she collect?

EASY

An owner who leases her unit for $2,400 a month is $1,500 behind in common expenses. The corporation serves the tenant a written notice under s. 87 of the Condominium Act, 1998. What must the tenant do?

MEDIUM

An Ontario condominium's registered declaration prohibits dogs in units. A tenant whose lease says nothing about pets moves in with a dog and tells the property manager that the Residential Tenancies Act forbids pet bans. Who is right?

HARD

Condominium Sales(11)

A status certificate delivered to a buyer omits a $4,000 special assessment that the board levied against the unit after the current budget date to increase the reserve fund. The buyer relied on the certificate and closed. Under the Condominium Act, 1998, what is the result?

HARD

A buyer's lawyer requests a status certificate and pays the fee on May 1. The corporation never delivers it. After closing, the corporation claims the seller owed $3,000 in common expense arrears and demands it from the buyer, who relied on the silence. What is the effect under s. 76 of the Condominium Act, 1998?

HARD

A seller is $6,000 behind in common expenses, and the corporation has registered a certificate of lien after giving proper notice to the seller's bank. How does the lien rank against the bank's first mortgage, which was registered years earlier?

MEDIUM

The seller of a condominium unit got board approval and signed a registered s. 98 agreement with the corporation to install a hot tub on her exclusive-use terrace, taking on its repair and insurance costs. How does that agreement affect the buyer?

MEDIUM

A buyer's status certificate shows that the corporation received a new reserve fund study two months ago, and the board has not yet sent owners anything about it. What does the Condominium Act, 1998 require of the board?

MEDIUM

An established Ontario condominium corporation completed its most recent reserve fund study in 2024. Under O. Reg. 48/01, when must it complete its next reserve fund study?

MEDIUM

A buyer is purchasing a resale condominium unit in Alberta from its current owner. Under the Condominium Property Act, how does the buyer obtain the corporation's prescribed information and documents?

HARD

A buyer reviewing a status certificate asks what the condominium's reserve fund may be spent on. Under the Condominium Act, 1998, what is the permitted purpose?

EASY

An investor buyer wants to know how many units in a condominium building were rented last year before making an offer. Which document must state the number of units for which the corporation received lease notices during the preceding fiscal year?

MEDIUM

A listing salesperson expects offers next week on a resale condominium unit and knows buyers will want the status certificate. By when must the corporation give a status certificate once it is requested?

HARD

A seller's salesperson is estimating the buyer's costs of reviewing an Ontario condominium unit's status certificate. What is the most the corporation may charge for providing the certificate?

EASY

Lease Agreements(14)

A tenant in a building first occupied in 1998 pays $2,000 a month, and 12 months have passed since her last increase. She agrees in writing to an increase taking effect in December 2026 in exchange for the landlord installing central air conditioning, a capital expenditure. The 2026 guideline is 2.1%. What is the highest rent the agreement may set?

HARD

A landlord offers the tenant a discount for paying rent on or before the due date. Under the Residential Tenancies Act, 2006, how large can that discount be without affecting the lawful rent?

MEDIUM

A landlord client wants to add a term to the standard lease saying the tenant may not have any overnight guests. What is the effect of such a term?

MEDIUM

Three roommates sign one standard form of lease as co-tenants of a house for $3,300 a month. One roommate moves out and stops paying. Under the standard lease, what is the position of the two remaining tenants?

EASY

With the landlord's consent, a tenant sublets her apartment for six months while she works in another city. The subtenant stops paying and damages the unit. Who is responsible to the landlord for the breaches?

EASY

A tenant's one-year fixed-term lease expires on July 31. Neither party gives notice of termination, and no renewal or new lease is signed. What is the status of the tenancy on August 1?

EASY

On March 3 a tenant asks the landlord in writing for consent to assign the rental unit, without naming a potential assignee. The landlord never responds. What may the tenant do?

MEDIUM

Four months into a tenancy, a tenant asks to add a parking space in the building's lot, and the landlord agrees to provide it for an extra $90 a month. The rent has not been increased since the tenancy began. Can the rent go up now?

HARD

A tenant's one-year lease ends on June 30. She wants to move out at the end of the term rather than stay on month to month. What is the latest date she can give the landlord her notice of termination?

MEDIUM

A tenant is entitled to move into a rental unit on September 1 under a standard form of lease. Under the Residential Tenancies Act, 2006, by when must the landlord and tenant sign the lease?

MEDIUM

A lease signed on August 10 says the tenant is entitled to occupy the unit from September 1, but the tenant does not actually move in until September 5. When does the tenancy's term begin?

EASY

A landlord client wants an additional term in the lease saying that if the tenant is late with any rent payment, all rent for the rest of the one-year term becomes due immediately. How would this term be treated?

MEDIUM

In 2025 a tenant signed a one-year lease on the landlord's own form instead of Ontario's standard form of lease. On March 1 the tenant demanded in writing that the landlord provide a standard lease. By March 25 the landlord still has not done so. What may the tenant do?

MEDIUM

A tenant on a two-year fixed-term lease that was not on the standard form demands a standard lease in writing. The landlord promptly provides a signed standard lease, but the tenant decides not to sign it. What right does the tenant now have?

HARD

Multi Unit Dwellings(14)

A buyer closes on a six-unit apartment building in which every unit is leased to a tenant. Under the Residential Tenancies Act, 2006, what happens to the existing tenancies on closing?

EASY

An eight-unit building rents each unit for $1,800 a month. Allow 3% of gross potential rent for vacancy and collection loss. Annual operating expenses are $52,000 and annual mortgage payments are $60,000. Using a 5.5% capitalization rate, what is the building's estimated value?

HARD

A listing salesperson for a six-unit building wants to show two occupied units to a prospective purchaser next Saturday. The tenants have not agreed to the visit. What must happen before she can enter those units?

HARD

After closing on a triplex, the buyer learns that the seller kept the tenants' last month's rent deposits and did not credit them to the buyer. The buyer asks each tenant to pay a new last month's rent deposit. May he require it?

MEDIUM

An investor is buying a detached house on a parcel of urban residential land. No building ancillary to the house contains a residential unit. Under the Planning Act, how many residential units in the house may a municipality's zoning by-law not prohibit?

EASY

An investor is buying a detached house that had one residential unit until 2021, when the owner, who lived upstairs, turned the unfinished basement into a self-contained unit with its own kitchen, bathroom and lockable entrance. Both units are now rented under leases that began in 2024. Which unit is subject to the rent increase guideline?

HARD

A tenant in a triplex built in 1975 pays $1,850 a month; the last increase took effect on January 1, 2026. The landlord wants the next increase to take effect on January 1, 2027. The guideline is 2.1% for 2026 and 1.9% for 2027. What is the maximum new rent without Board approval?

MEDIUM

A buyer's salesperson is calculating the net operating income of a small apartment building from the seller's statements. Which of these costs should NOT be deducted in arriving at net operating income?

EASY

The buyer of a five-unit building closed on May 1, 2026. One tenant's rent was last increased on February 1, 2026. The buyer wants to raise that tenant's rent on August 1, 2026, saying a new owner can reset rents. Is this allowed?

MEDIUM

The seller of a legal duplex agrees to sell to a buyer who in good faith intends to live in the upper unit. The seller gives the upper tenant a proper notice of termination on the buyer's behalf. Who must compensate the tenant, and how much?

MEDIUM

A fourplex is listed at $1,080,000. Its gross scheduled rents total $90,000 a year. What is its gross rent multiplier based on annual rents?

EASY

A buyer is purchasing a ten-unit building that was completed and first occupied for residential purposes in 2021. A tenant who moved in during 2023 pays $2,000 a month. What limits the landlord's next rent increase for that tenant?

MEDIUM

A buyer is purchasing a fourplex and wants to move into one of the tenanted units herself. She asks the seller to give that tenant a notice on her behalf because the purchaser requires the unit for her own use. What does the Residential Tenancies Act, 2006 allow?

MEDIUM

An investor is analysing a sixplex with a net operating income of $78,000 a year. Similar small apartment buildings have recently sold at a capitalization rate of 5.2%. Using direct capitalization, what is the indicated value of the sixplex?

MEDIUM

Multiple Representation(16)

Sarah's buyer salesperson works for a brokerage that does not use designated representation. Sarah wants to make an offer on a home the same brokerage has listed for a seller client. If the brokerage represents both Sarah and the seller in this trade, what situation is created?

MEDIUM

In Ontario, a buyer with no representation asks the listing brokerage, which already represents the seller, to represent the buyer too in buying the property. The brokerage does not use designated representation. What must happen under TRESA and O. Reg. 567/05?

HARD

Under TRESA and O. Reg. 567/05, when must an Ontario brokerage disclose multiple representation to its clients?

EASY

When must a real estate agent disclose multiple representation to their clients?

EASY

Sarah is a real estate agent representing both the buyer and seller in the same transaction. What type of representation is this called and what must she do?

MEDIUM

In which situation would multiple representation occur?

EASY

An Ontario brokerage that does not use designated representation has a seller representation agreement, handled by Broker A. Salesperson B of the same brokerage has a buyer representation agreement with a buyer, and Salesperson C of the brokerage shows the property and writes the buyer's offer. What disclosure obligations exist?

HARD

In Ontario, a buyer wants to submit an offer on a property where their agent also represents the seller. What type of representation scenario is this?

MEDIUM

In a complex multiple representation scenario, Agent A represents the seller, Agent B represents the buyer, but both agents work for the same brokerage. The buyer wants to submit an offer $20,000 below asking price. How should this confidential information be handled?

HARD

What happens when a real estate salesperson represents both the buyer and seller in the same transaction?

MEDIUM

In Ontario, Sarah is a real estate salesperson representing both the buyer and the seller in the same transaction, with written consent from both parties. What type of representation is this?

MEDIUM

In Ontario, Agent John represents a seller and his colleague Agent Mary, from the same brokerage, represents a buyer for the same property. Both clients signed ordinary brokerage representation agreements, not designated representation agreements. What does O. Reg. 567/05 require?

HARD

Under TRESA's general regulation, what must happen before an Ontario brokerage may represent both the buyer and the seller in the same trade?

HARD

A BC licensee realizes that acting for both a buyer client and a seller client in the same trade would be dual agency. With both clients' written agreement in the approved form, the licensee continues for the seller only. The licensee earlier learned that the buyer has a past bankruptcy. What must the licensee do?

HARD

An Alberta brokerage has agency relationships with both a seller and a buyer who wants that seller's property. Under the RECA Rules, how can the brokerage act for both parties in this trade?

MEDIUM

In a multiple representation scenario, what is the agent's primary obligation?

MEDIUM

New Construction(16)

A buyer of a new home will be out of the country on the day of the pre-delivery inspection. According to Tarion, what may she do?

EASY

A buyer signs an agreement in March 2026 to buy a new freehold home from a builder for $850,000 and pays $120,000 in deposits. The builder then goes bankrupt and the sale never closes. Under Regulation 892 made under the Ontario New Home Warranties Plan Act, what is the most Tarion can pay on her deposit claim?

HARD

Eight months after possession, the owner of a new home reports two items: hairline drywall cracks caused by normal shrinkage as the framing dried, and an interior door the builder hung so badly that it will not latch. Under s. 13 of the Ontario New Home Warranties Plan Act, which statement is correct?

EASY

A buyer is considering a new house from a small company that advertises homes for sale in a rural subdivision. Under s. 37 of the New Home Construction Licensing Act, 2017, what must the company hold before it may offer to sell a new home?

MEDIUM

A family buys a resale house whose original owner took possession from the builder 18 months ago. Water is now leaking through the basement foundation wall. What is the family's warranty position?

EASY

In the fifth year after possession, a load-bearing beam in a new home bought in 2024 cracks and fails, and part of the house can no longer be used. Which part of the statutory new home warranty applies?

MEDIUM

A landowner signs a construction contract with a builder to build a house on her own rural lot. She pays the builder $150,000, but the builder abandons the job after supplying work and materials worth $95,000. What is the most Tarion will pay her for this financial loss?

MEDIUM

The Tarion addendum to a new freehold home purchase agreement sets a Firm Closing Date. According to Tarion, how long after the Firm Closing Date is the Outside Closing Date, the latest closing date available to the builder?

MEDIUM

Two months before the Firm Closing Date, a province-wide strike halts work on a new freehold home for six weeks. The builder told the buyer when the strike began, estimated how long it would last, and gave written notice when it ended. What does the Tarion addendum allow?

MEDIUM

A repeat buyer's 2025 purchase agreement for a newly built Ontario house sets a price of $700,000 plus HST, and she will live in it. Given that the provincial part of the HST is 8%, what is her Ontario new housing rebate?

HARD

Section 53.2 of the New Home Construction Licensing Act, 2017 comes into force on January 1, 2027. What will it give a buyer who signs a purchase agreement for a new freehold home from a vendor after that date?

MEDIUM

A condominium unit's Firm Occupancy Date passes and occupancy is delayed by 70 days for reasons that are not an unavoidable delay. The builder gave the required notice of the delay, and the buyer has $900 in receipted moving and storage costs. What delayed occupancy compensation does Tarion's coverage provide?

HARD

A buyer who has owned homes before signs an agreement in 2025 to buy a new house from a builder for $480,000 before tax, to live in as her primary residence. Which new housing rebate can she claim?

EASY

An investor buys a new condominium unit from a builder, planning from the start to rent it to long-term tenants. He asks whether the builder can credit him the GST/HST new housing rebate on closing. What is the correct answer?

MEDIUM

A buyer's purchase agreement lets her choose her kitchen flooring, and she made her selection on time. The builder then sends written notice that her chosen flooring is unavailable. Under Regulation 892, what happens next?

MEDIUM

A builder gave proper written notice but closed a new freehold home 30 days after the Firm Closing Date in the Tarion addendum. The delay was not an unavoidable delay, and the buyer never agreed to a new date. The buyer has receipts for $1,200 in extra moving and storage costs. How much delayed closing compensation is owed?

MEDIUM

Offer Process(26)

A buyer submits an offer with a condition for financing approval within 5 business days. What happens if the buyer cannot secure financing by the deadline?

MEDIUM

In British Columbia, a buyer's licensee discovers that their client's offer was accepted, but the seller's licensee failed to disclose a material latent defect that both the seller and the seller's licensee knew about. What is the most appropriate immediate action?

HARD

A buyer's offer includes a condition for home inspection. The inspection reveals significant foundation issues. What are the buyer's options regarding this condition?

MEDIUM

In Ontario, what is the standard time period for a buyer to remove conditions in a residential offer?

EASY

A buyer's offer includes a condition for financing approval. If the buyer's mortgage application is denied, what options does the buyer have?

MEDIUM

An Ontario purchase agreement contains a financing condition stating that, unless the buyer gives written notice that the condition is fulfilled by 11:59 p.m. on a set date, the offer is null and void. Time is of the essence. The buyer sends the notice at 9:00 a.m. the next morning. What is the status of the agreement?

HARD

In an Ontario resale offer, how long is the period for fulfilling or waiving a financing or inspection condition?

EASY

An Ontario buyer's offer includes a standard financing condition: unless the buyer gives written notice that the condition is fulfilled by 5:00 p.m. on March 15, the offer is null and void. The buyer cannot arrange financing and gives no notice by the deadline. What is the result?

MEDIUM

An Ontario buyer's offer has a standard financing condition: unless the buyer gives written notice that the condition is fulfilled within five business days, the offer is null and void. On day 4 the lender declines the mortgage. What is the buyer's safest course?

MEDIUM

A seller receives two competing offers simultaneously, both with identical price and terms, but one has a 7-day financing condition while the other has a 21-day financing condition. From a risk management perspective, which offer is generally more attractive to the seller?

HARD

In an Ontario resale market, in which situation would a buyer most likely choose to offer a larger deposit?

MEDIUM

In a standard Ontario Agreement of Purchase and Sale, how long does a buyer have to fulfil or waive a condition such as financing or inspection?

EASY

A buyer submits an offer with a financing condition that expires in 5 business days. On day 3, they receive mortgage approval. What should happen next?

MEDIUM

A seller receives three offers on the same day with identical purchase prices but different conditions. Offer A has no conditions, Offer B has a 7-day inspection condition, and Offer C has both inspection and financing conditions. From a risk management perspective, which offer is typically most attractive to the seller?

HARD

A first-time buyer in Ontario asks what percentage of the price the law requires as a deposit with a resale offer. What is the accurate answer?

EASY

What does a condition precedent in an offer to purchase allow the buyer to do?

EASY

A seller signs acceptance of a buyer's offer, and the acceptance is communicated to the buyer at 2:00 p.m. At 3:00 p.m. the listing brokerage receives a higher offer. What is the legal status of the first agreement?

HARD

A seller receives three competing offers on the same day, with one offer having no conditions, one with a financing condition, and one with both financing and inspection conditions. All offers are at the same price. What factor should the listing agent emphasize when presenting these offers?

HARD

When a residential offer includes a condition for financing, what happens if the buyer cannot secure adequate financing by the specified deadline?

MEDIUM

What is the standard time period for conditions in a real estate purchase offer to be fulfilled?

MEDIUM

+ 6 more questions

Residential Leasing(16)

A tenant signed the standard lease and gave it to the landlord on June 1. Under the Residential Tenancies Act, 2006, by when must the landlord give the tenant a copy signed by both parties?

MEDIUM

A landlord client's draft written lease gives only a property manager's email for contact and omits the landlord's legal name and address for notices. If the tenant signs it that way, what is the consequence under the Residential Tenancies Act, 2006?

MEDIUM

A landlord client asks the listing salesperson to turn away rental applicants with young children because an older couple lives below the unit. The landlord does not live in the building. What should the salesperson do?

EASY

A landlord client insists that a new tenant hand over 12 post-dated rent cheques as a condition of signing the lease. What should the landlord's salesperson advise?

MEDIUM

A landlord client wants the lease to charge the tenant $50 for every rent cheque that is returned NSF. Under O. Reg. 516/06, what may the landlord charge for a returned cheque?

MEDIUM

A landlord client wants to collect a $150 non-refundable key fee when the lease is signed. A replacement fob for the building costs $60. Under the Residential Tenancies Act, 2006 and O. Reg. 516/06, what may the landlord collect?

MEDIUM

A tenant paid a $2,000 last month's rent deposit when the rent was $2,000. On July 1, 2026 the annual interest on the deposit falls due, and the same day the rent lawfully rises to $2,030. The 2026 guideline is 2.1%. What may the landlord do with the interest?

HARD

A landlord client is renting a unit on a weekly tenancy at $450 a week. What is the largest rent deposit the landlord may require from the tenant?

MEDIUM

A monthly tenant has given the landlord proper written notice that she will move out at the end of next month. The landlord's salesperson wants to show the unit to prospective tenants. Under the Residential Tenancies Act, 2006, what is required?

EASY

A salesperson represents a landlord who is renting out a detached house under a one-year lease being signed in 2026. Which document must the landlord and tenant use as their written tenancy agreement?

EASY

A landlord client is leasing a unit in a building first occupied for residential purposes in 2022. She wants the tenant to know that future rent increases are not capped by the guideline, and to be able to prove the exemption if challenged. What should the salesperson recommend?

HARD

A homeowner who lives in her house wants to rent a spare bedroom to a student who will share her kitchen and bathroom. Does the Residential Tenancies Act, 2006 apply to this arrangement?

MEDIUM

A unit in a 1990s apartment building rented for $1,700 a month until the tenant moved out after giving proper notice. The landlord client wants to rent it to a new tenant for $2,300 starting December 1, 2026. What applies?

HARD

A landlord client wants any tenant of her rented house to carry insurance. What does Ontario's standard form of lease allow the landlord and tenant to agree?

EASY

A prospective tenant paid a $2,200 rent deposit for a unit available on June 1, but the previous tenant refuses to leave and vacant possession is never given. The prospective tenant does not want a different unit. What must the landlord do with the deposit?

MEDIUM

On a Monday a listing brokerage receives a prospective tenant's $2,600 rent deposit with an accepted agreement to lease. Under O. Reg. 567/05, when must the brokerage deposit the money into its real estate trust account?

MEDIUM

Rural Properties(16)

A family buys a country home next to a long-established hog farm. After closing they sue the farmer in nuisance over the smell, but the farm's manure handling is a normal farm practice. Under the Farming and Food Production Protection Act, 1998, what is the likely outcome?

MEDIUM

A rural property has a new drilled well serving the house and an old dug well near the barn that nobody uses or maintains. What does the Wells Regulation (R.R.O. 1990, Reg. 903) require the owner to do with the old well?

MEDIUM

A cottage is reached only by a private gravel road across a neighbour's land. The road is not a public highway and no public money has been spent on it. The neighbour threatens a locked gate that would cut off all road access to the cottage. Under the Road Access Act, what is his position?

MEDIUM

A buyer wants to build a detached two-car garage on a rural lot, about 25 metres from the edge of a wetland. Under O. Reg. 41/24 made under the Conservation Authorities Act, what applies to that location?

HARD

A seller owns a 40-hectare farm that is not in a registered plan of subdivision. He wants to sell a 1-hectare building lot from it and keep the rest, and no consent has been granted yet. How should the buyer's agreement of purchase and sale be drafted?

MEDIUM

A municipality gives provisional consent to sever a waterfront lot. The neighbouring cottage owner, who made written submissions opposing it, wants to appeal to the Ontario Land Tribunal. Under s. 53(19) of the Planning Act, what is her position?

HARD

A rural property lies in an area where the local source protection plan under the Clean Water Act, 2006 designates a land use as restricted under s. 59. The buyer plans to construct a building for that use. What must the buyer obtain before building?

MEDIUM

A conservation authority issues a permit under s. 28.1 of the Conservation Authorities Act for a new house on a rural lot near a creek valley, valid for 24 months. The buyer asks whether it can be extended. Under O. Reg. 41/24, what applies?

HARD

The seller of a rural home says his cousin, who owns a pump truck but has no registration, pumps out neighbours' septic tanks for a fee. Under s. 15.12 of the Building Code Act, 1992, what is required of a person in the business of servicing, cleaning or emptying sewage systems?

MEDIUM

A rural home is heated with fuel oil stored in an underground tank. Under s. 7(4) of O. Reg. 213/01 (Fuel Oil) made under the Technical Standards and Safety Act, 2000, when may fuel oil be supplied to that tank?

EASY

A buyer of a rural home plans to replace the failing leaching bed of the septic system right after closing. What does the Building Code Act, 1992 require before the work starts?

MEDIUM

A municipality grants consent to sever a rural lot, the conditions are fulfilled, and the clerk issues the certificate of consent under s. 53(42) of the Planning Act. The consent sets no earlier lapse date. If the sale has not been carried out, when does the consent lapse?

MEDIUM

A rural owner's land is still in the Registry system. A neighbour has driven across it on a farm lane, openly and without permission, to reach his fields. Under s. 31 of the Real Property Limitations Act, what minimum period of uninterrupted use can support his claim to a right-of-way by prescription?

EASY

A township passes a noise by-law. A rural homeowner asks whether it will stop the neighbouring orchard's propane bird-scare cannons, which are used as a normal farm practice. What does s. 6 of the Farming and Food Production Protection Act, 1998 provide?

EASY

A buyer's offer on a rural home is conditional on a satisfactory well water test, and the seller suggests using the free Public Health Ontario laboratory test. What does that test check for?

EASY

A rural parcel has been registered in the Land Titles system for 40 years. A neighbour began driving across it 25 years ago and now claims a prescriptive right-of-way. Under s. 51 of the Land Titles Act, what is the result?

MEDIUM

Residential Trading: What Canadian Real Estate Professionals Need to Know

Residential property types, buyer/seller representation, offer process, and closing procedures. This topic area is a critical component of Canadian real estate licensing exams across all provinces, including Ontario (RECO), British Columbia (BCFSA), and Alberta (RECA).

Understanding residential trading is essential not only for passing your exam but also for building a successful career in Canadian real estate. The questions in this section cover both theoretical knowledge and practical application of these concepts in day-to-day real estate transactions.

We recommend completing all 242 questions in this topic, reviewing the detailed explanations for each answer, and then revisiting any questions you found challenging. Use the memory techniques and exam tips provided to reinforce your understanding of key concepts.

Master Residential Trading

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