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Nova Scotia Real Estate Salesperson study materials
Nova Scotia Real Estate Salesperson study resources

Nova Scotia Real Estate Salesperson practice questions

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Question 1Real Estate Trading Act and Regulations

Under the Real Estate Trading Act, which body is responsible for administering the Act and licensing brokers and salespersons in Nova Scotia?

  1. The Nova Scotia Real Estate Commission Correct answer.
  2. The Real Estate Institute of Canada
  3. Service Nova Scotia and Internal Services
  4. The provincial Department of Justice

Explanation

The Real Estate Trading Act establishes the Nova Scotia Real Estate Commission as the body that administers the legislation and licenses brokers and salespersons. The Commission also handles complaints and discipline against licensees. Other bodies may regulate other industries or provide professional education, but they do not administer this Act.

Question 2Real Estate Trading Act and Regulations

A salesperson licensed under the Act must be employed by which of the following?

  1. A property management firm
  2. A licensed broker Correct answer.
  3. A real estate association
  4. A mortgage lender

Explanation

The Act requires salespersons to trade in real estate on behalf of a licensed broker rather than independently. A salesperson cannot hold a licence in isolation and must be associated with a brokerage. This structure ensures supervision and accountability for trust funds and dealings.

Question 3Real Estate Trading Act and Regulations

Which statement best describes the purpose of the trust account provisions in the Act and regulations?

  1. To protect money held on behalf of clients from misuse Correct answer.
  2. To fund the Commission's operations
  3. To standardize property tax collection
  4. To guarantee commission rates for brokerages

Explanation

Trust account rules exist to safeguard funds that a brokerage holds for clients, such as deposits and rents. The regulations prescribe how these accounts are maintained, recorded, and reconciled. This protects consumers if a brokerage fails or mishandles money.

Question 4Real Estate Trading Act and Regulations

Under the Act, a person who wishes to trade in real estate for another person for remuneration must generally hold which of the following?

  1. A mortgage broker certificate
  2. A valid licence issued under the Act Correct answer.
  3. A business registration only
  4. A municipal permit

Explanation

Trading in real estate for remuneration on behalf of others requires a licence under the Real Estate Trading Act. Unlicensed trading is an offence and may attract penalties. Registration or permits from other bodies do not substitute for a licence.

Question 5Real Estate Trading Act and Regulations

What is the maximum term for which a licence issued under the Act may be granted before renewal is required?

  1. Five years
  2. Three years
  3. One year Correct answer.
  4. Two years

Explanation

Licences under the Act are granted for a term of one year and must be renewed annually. Annual renewal allows the Commission to confirm continuing education and good standing. The renewal cycle keeps licensee records current and supports consumer protection.

Question 6Real Estate Trading Act and Regulations

Which of the following is a duty of a broker under the Act regarding a salesperson employed by the brokerage?

  1. Supervising the salesperson's trading activities Correct answer.
  2. Providing the salesperson with a company vehicle
  3. Setting the salesperson's commission split by statute
  4. Paying the salesperson's association dues

Explanation

A broker is responsible for supervising the trading activities of salespersons employed by the brokerage. This supervision supports compliance with the Act and protects the public. Commission splits, vehicles, and association dues are matters of private arrangement, not statutory broker duties.

Question 7Real Estate Trading Act and Regulations

What must a licensee do when they become aware that they are in a conflict of interest in a trade?

  1. Report it only if the trade closes
  2. Disclose the conflict to the affected parties in writing Correct answer.
  3. Resolve it by reducing the commission
  4. Keep the information confidential

Explanation

Licensees must disclose conflicts of interest to the parties so they can make informed decisions. Disclosure should be timely and in writing so the parties understand the nature of the conflict. Concealing a conflict breaches the duty of good faith owed to clients.

Question 8Real Estate Trading Act and Regulations

Which of these activities would require a real estate licence under the Act?

  1. Renting out your own cottage occasionally
  2. Negotiating a sale of a home on behalf of an owner for a fee Correct answer.
  3. Selling your own principal residence
  4. Managing your own investment property

Explanation

Negotiating a sale on behalf of another person for remuneration is trading and requires a licence. Owners dealing with their own property are generally exempt because they are acting on their own behalf. The distinction turns on acting for another for compensation.

Question 9Real Estate Trading Act and Regulations

A brokerage receives a deposit cheque from a buyer on a signed agreement of purchase and sale. Under the regulations, how should the brokerage handle the deposit?

  1. Apply it to the brokerage's operating expenses
  2. Forward it directly to the seller's lawyer without recording it
  3. Deposit it promptly into the brokerage's trust account Correct answer.
  4. Hold it in the broker's personal account until closing

Explanation

Deposits received in trust must be deposited promptly into the brokerage's trust account and recorded. Commingling trust money with operating funds or personal accounts is prohibited. The trust account protects the buyer until the funds are properly disbursed.

Question 10Real Estate Trading Act and Regulations

A salesperson leaves one brokerage to join another. What must happen to the salesperson's licence?

  1. It must be transferred or reissued to reflect the new brokerage Correct answer.
  2. It remains unchanged and continues under the old brokerage
  3. It is automatically cancelled and cannot be reissued
  4. It converts to a broker's licence

Explanation

A salesperson's licence is tied to the employing brokerage, so a change of brokerage requires the licence to be transferred or reissued. The Commission must be notified so records remain accurate. Trading under the former brokerage after leaving would be improper.

Question 11Real Estate Trading Act and Regulations

Which of the following best describes the Commission's authority when it receives a complaint about a licensee?

  1. It may investigate and take disciplinary action, including suspending a licence Correct answer.
  2. It may only issue a warning letter with no further powers
  3. It must refer every complaint to the police
  4. It can impose criminal penalties on the licensee

Explanation

The Commission has authority to investigate complaints and impose discipline, which can include suspension or revocation of a licence. It may also order remedial measures. Criminal penalties are imposed by courts, not the regulator.

Question 12Real Estate Trading Act and Regulations

A broker wants to advertise a property that a client has listed. Which requirement applies to the advertising under the Act and regulations?

  1. The advertisement must be approved by the Commission before release
  2. The advertisement must include the seller's phone number
  3. The advertisement must state the commission rate
  4. The advertisement must identify the brokerage's name Correct answer.

Explanation

Advertising by a brokerage must identify the brokerage so the public knows who is responsible for the trade. Misleading advertising is prohibited. Commission rates and seller contact details are not required elements, and prior Commission approval is not needed.

Question 13Real Estate Trading Act and Regulations

A licensee is acting for a buyer and also shows the buyer a property listed by the same brokerage. What is this situation called?

  1. An open listing
  2. A subagency arrangement
  3. A dual agency or multiple representation Correct answer.
  4. A designated agency

Explanation

When the same brokerage represents both buyer and seller in a trade, this is commonly described as dual agency or multiple representation. Because the parties' interests may conflict, the brokerage must disclose the situation and obtain informed consent. The Act and regulations govern how such representation is handled.

Question 14Real Estate Trading Act and Regulations

Which of the following records must a brokerage keep under the regulations?

  1. Only tax returns
  2. Only client emails
  3. Only marketing materials
  4. Records of trades and trust account transactions Correct answer.

Explanation

Brokerages must maintain records of trades and of trust account transactions as prescribed by the regulations. These records allow the Commission to audit compliance and verify that client money is handled properly. Keeping only selected documents would not satisfy the requirement.

Question 15Real Estate Trading Act and Regulations

A salesperson is asked by a client to hold back a material defect in the property from a prospective buyer. What should the salesperson do?

  1. Disclose only after the offer is accepted
  2. Agree, because the client is the principal
  3. Refuse, because the licensee must not participate in misrepresentation Correct answer.
  4. Agree, but only if the buyer does not ask

Explanation

Licensees must not make or participate in misrepresentations about a property, even at a client's request. Concealing material facts can expose the licensee and client to liability. The licensee should advise the client and act honestly with all parties.

Question 16Real Estate Trading Act and Regulations

What is the consequence under the Act for a person who trades in real estate without a licence?

  1. They may be prosecuted and subject to penalties Correct answer.
  2. They are automatically granted a licence
  3. They may continue if they charge no commission
  4. They are exempt if they work for a lawyer

Explanation

Unlicensed trading is an offence under the Act and may result in prosecution and penalties. The Commission can also take steps to stop the activity. Charging no commission or working near a lawyer does not create an exemption.

Question 17Real Estate Trading Act and Regulations

A brokerage closes and no longer holds a licence. What must happen to client funds still held in its trust account?

  1. They may be retained by the broker as a closing bonus
  2. They become the property of the Commission
  3. They may be transferred to the broker's personal account
  4. They must be accounted for and disbursed to the rightful parties Correct answer.

Explanation

Trust money remains the clients' property and must be accounted for and paid to the persons entitled to it. The regulations require proper records and disbursement even when a brokerage ceases operations. Retaining or converting the funds would be a breach of trust.

Question 18Real Estate Trading Act and Regulations

Which of the following describes the continuing education requirement for licensees under the regulations?

  1. Licensees need only pass the initial exam once
  2. Licensees must complete required education to renew their licences Correct answer.
  3. Licensees may substitute volunteer work for education
  4. Licensees are exempt after five years

Explanation

The regulations require licensees to complete continuing education as a condition of licence renewal. This keeps licensees current on law and practice and supports consumer protection. Passing the initial exam does not remove the ongoing requirement.

Question 19Real Estate Trading Act and Regulations

A buyer gives a salesperson a deposit cheque payable to the brokerage. Before the trade closes, the salesperson wants to use part of the deposit to pay for marketing. What is the correct approach?

  1. The salesperson may use it if the buyer agrees verbally
  2. The salesperson may use it if the brokerage reimburses later
  3. The deposit must remain in trust and not be used for marketing Correct answer.
  4. The deposit may be used because it is payable to the brokerage

Explanation

Deposits held in trust belong to the client and cannot be used for the brokerage's business expenses. Using trust funds for marketing would be a misapplication of client money. The funds must be disbursed only as the trade or agreement requires.

Question 20Real Estate Trading Act and Regulations

Under the Act, what is the role of the Commission in relation to licensing hearings and appeals?

  1. It delegates all hearings to municipalities
  2. It only advises the Minister
  3. It conducts hearings and its decisions may be appealed to a court Correct answer.
  4. It has no role in hearings

Explanation

The Commission conducts licensing and discipline hearings, and its decisions are subject to appeal as provided by the Act. This provides an internal process and a route to court review. Municipalities have no role in these hearings.

Question 21Real Estate Trading Act and Regulations

A licensee is unsure whether a proposed referral fee to an unlicensed third party is permitted. Which principle applies?

  1. Paying fees to unlicensed persons for trading activity is generally prohibited Correct answer.
  2. Referral fees are set by the Commission
  3. Referral fees are always permitted if disclosed
  4. Referral fees may be paid only in cash

Explanation

The Act restricts sharing remuneration for trading in real estate with unlicensed persons, because that would allow unlicensed trading. Disclosure alone does not cure the prohibition. Licensees should confirm the rules before paying any referral fee.

Question 22Real Estate Trading Act and Regulations

A brokerage's trust account reconciliation shows a shortage. What is the most appropriate immediate action under the regulatory framework?

  1. Transfer operating funds in without recording it
  2. Wait until year-end to see if it resolves
  3. Close the trust account quietly
  4. Investigate and correct the shortage, and report as required Correct answer.

Explanation

A trust shortage must be investigated promptly and corrected, and the matter reported as the regulations require. Concealing or delaying correction increases risk to clients and breaches record-keeping duties. Operating funds may be used to restore the account, but the transaction must be properly recorded.

Question 23Real Estate Trading Act and Regulations

A salesperson employed by Brokerage A personally agrees to represent a seller, with the commission paid directly to the salesperson rather than the brokerage. How does the Act view this arrangement?

  1. It is improper because trading must be conducted through the brokerage Correct answer.
  2. It is permitted if the seller agrees in writing
  3. It is permitted for transactions under a set value
  4. It is permitted if the salesperson reports the income

Explanation

A salesperson trades on behalf of the employing brokerage, and remuneration for trading flows through the brokerage. A side arrangement where the salesperson contracts directly and is paid personally bypasses that structure. Such conduct can amount to unlicensed or improper trading and breaches the licensee's obligations.

Question 24Real Estate Trading Act and Regulations

A licensee receives an offer on a listing and the seller instructs the licensee to present only offers above a certain price. Which statement best reflects the licensee's obligation?

  1. The licensee may accept an offer on the seller's behalf
  2. The licensee may tell buyers that no other offers exist
  3. The licensee may discard lower offers without telling the seller
  4. The licensee must follow lawful client instructions but must not misrepresent the process to buyers Correct answer.

Explanation

A licensee owes the client good faith and must follow lawful instructions about how offers are handled. At the same time, the licensee must not mislead buyers about the process or the existence of offers. The licensee cannot accept an offer on the seller's behalf or conceal offers from the seller.

Question 25Real Estate Trading Act and Regulations

Which situation most clearly triggers the Act's disclosure requirements regarding an interest a licensee has in a property being traded?

  1. The licensee attends an open house for another brokerage
  2. The licensee advertises the listing in a newspaper
  3. The licensee recommends a home inspector to the buyer
  4. The licensee wants to buy a client's listed property through a company they control Correct answer.

Explanation

When a licensee has a personal or corporate interest in acquiring a client's property, that interest must be disclosed so the client can make an informed decision. The disclosure must be clear and timely. Recommending service providers, advertising, and attending open houses do not by themselves create this kind of interest.

Question 26Real Estate Trading Act and Regulations

Under the Real Estate Trading Act, what is required for a person to legally trade in real estate in Nova Scotia?

  1. A membership in a local real estate board
  2. A permit from the municipal government
  3. A business registration with the provincial government
  4. A licence issued by the Nova Scotia Real Estate Commission Correct answer.

Explanation

The Act prohibits trading in real estate without a licence issued by the Commission. Licensing ensures individuals meet education, insurance, and regulatory requirements. Other registrations or memberships do not authorize trading.

Question 27Real Estate Trading Act and Regulations

Which body is responsible for administering the Real Estate Trading Act and regulating licensees in Nova Scotia?

  1. The local real estate board
  2. The Canadian Real Estate Association
  3. The Nova Scotia Real Estate Commission Correct answer.
  4. The provincial Department of Finance

Explanation

The Commission is the statutory regulator established under the Act. It handles licensing, complaints, and discipline. Other bodies may have related roles but do not administer the Act.

Question 28Real Estate Trading Act and Regulations

What is the primary purpose of the trust account requirements in the Real Estate Trading Act and Regulations?

  1. To ensure the brokerage earns interest on deposits
  2. To simplify the accounting process for salespersons
  3. To allow brokers to use deposits for office expenses
  4. To protect client funds from misuse by the brokerage Correct answer.

Explanation

Trust provisions safeguard money held on behalf of clients. The brokerage must keep funds separate and account for them properly. Using deposits for business expenses is prohibited.

Question 29Real Estate Trading Act and Regulations

Which of the following must a salesperson do when their licence is suspended by the Commission?

  1. Continue trading under the supervision of the broker
  2. Transfer their licence to another brokerage
  3. Cease all real estate trading activities immediately Correct answer.
  4. Apply for a new licence after one year

Explanation

A suspended licence means the person is not authorized to trade in real estate. Any trading during suspension would be unlicensed activity. Supervision or transfer does not cure a suspension.

Question 30Real Estate Trading Act and Regulations

What is required for a brokerage to open a trust account for holding client deposits?

  1. The account must be a personal savings account of the broker
  2. The account must be designated as a trust account with a financial institution Correct answer.
  3. The account must be held at a credit union only
  4. The account must be audited monthly by the Commission

Explanation

Trust accounts must be clearly identified as trust accounts with the financial institution. Commingling with personal or operating funds is prohibited. Monthly Commission audits are not required.

Question 31Real Estate Trading Act and Regulations

Which of the following is a ground for disciplinary action by the Commission against a licensee?

  1. Advertising a listing on social media
  2. Making a material misrepresentation in a trade Correct answer.
  3. Negotiating a commission with a client
  4. Working with a buyer who is not represented

Explanation

Material misrepresentation is a serious breach of the Act and grounds for discipline. Working with unrepresented parties, advertising, and negotiating commissions are lawful activities when properly conducted.

Question 32Real Estate Trading Act and Regulations

What must a brokerage do with an offer to purchase once it is accepted by the seller?

  1. Send the original to the Commission for approval
  2. Deliver a copy to the buyer promptly and retain a copy in the file Correct answer.
  3. Destroy the offer after the transaction closes
  4. Hold the offer until financing is confirmed

Explanation

The brokerage must ensure all parties receive copies of the accepted agreement. Records must be kept for the required retention period. Commission approval is not required.

Question 33Real Estate Trading Act and Regulations

Which of the following best describes the Commission's role in handling complaints against licensees?

  1. It investigates complaints and may refer them to a discipline committee Correct answer.
  2. It provides legal representation to the complainant
  3. It acts as a mediator to resolve disputes between clients
  4. It automatically suspends the licensee upon receiving a complaint

Explanation

The Commission has authority to investigate complaints and, where warranted, refer matters for discipline. It does not act as a mediator or provide legal representation. Suspension is not automatic.

Question 34Real Estate Trading Act and Regulations

A salesperson is unsure whether a particular activity requires a licence. What is the most appropriate action under the Act?

  1. Proceed if the client consents in writing
  2. Rely on the broker's past practice
  3. Ask the local real estate board for an opinion
  4. Seek guidance from the Commission before proceeding Correct answer.

Explanation

The Commission is the authoritative source for licensing questions. Proceeding without clarity risks unlicensed trading. Client consent or past practice does not determine licensing requirements.

Question 35Real Estate Trading Act and Regulations

A licensee is approached by a seller who wants to sell a property without listing it on the MLS system. The licensee agrees to represent the seller. What must the licensee do first?

  1. Obtain approval from the local real estate board
  2. Notify the Commission of the private sale
  3. Advertise the property on social media
  4. Enter into a written service agreement with the seller Correct answer.

Explanation

A written service agreement is required before providing services. It sets out the terms of the relationship. Board approval or Commission notification is not required for a private listing.

Question 36Real Estate Trading Act and Regulations

A salesperson receives a deposit from a buyer in the form of a cheque made payable to the seller. What should the salesperson do?

  1. Hold the cheque personally until closing
  2. Deposit the cheque into the brokerage's operating account
  3. Forward the cheque directly to the seller without recording it
  4. Advise the buyer to make the cheque payable to the brokerage in trust Correct answer.

Explanation

Deposits must be held in trust by the brokerage. Cheques should be payable to the brokerage in trust. Personal holding or direct forwarding without records violates trust rules.

Question 37Real Estate Trading Act and Regulations

A licensee is acting for a buyer and learns that the seller is the licensee's cousin. What should the licensee do?

  1. Disclose the relationship to the buyer in writing Correct answer.
  2. Withdraw from the transaction immediately
  3. Proceed without disclosure because the relationship is distant
  4. Ask the seller to find another buyer

Explanation

Any personal interest or relationship that could affect the trade must be disclosed. Written disclosure allows the buyer to make an informed decision. Withdrawal is not automatically required.

Question 38Real Estate Trading Act and Regulations

A brokerage's trust account reconciliation reveals a shortage of $500. What is the most appropriate immediate action?

  1. Ask the salesperson to personally repay the amount
  2. Report the shortage to the Commission and restore the funds Correct answer.
  3. Wait until the next month to see if it resolves
  4. Use the brokerage's operating funds to cover it without reporting

Explanation

Trust shortages must be reported promptly to the Commission. The brokerage must restore the funds to the trust account. Concealing or delaying the report is a serious violation.

Question 39Real Estate Trading Act and Regulations

A salesperson wants to advertise a property that is not listed with their brokerage. What must the salesperson ensure before advertising?

  1. A listing agreement with the owner and MLS registration
  2. Verbal consent from the owner and a copy of the ad to the Commission
  3. Written consent from the property owner and broker approval Correct answer.
  4. Approval from the local board and payment of a fee

Explanation

Advertising a property requires the owner's written consent and adherence to brokerage policy. Broker approval ensures compliance with the Act. MLS registration is not mandatory for all advertising.

Question 40Real Estate Trading Act and Regulations

A licensee is asked by a client to provide a copy of the client's transaction file. What is the licensee's obligation?

  1. Refuse because the file is the brokerage's property
  2. Provide it only after the Commission approves
  3. Provide the copy promptly upon request Correct answer.
  4. Charge a fee equal to the brokerage's costs

Explanation

Clients are entitled to access their transaction records. The brokerage must provide copies in a timely manner. Refusal or unnecessary conditions may breach the Act.

Question 41Real Estate Trading Act and Regulations

A licensee is considering taking a listing on a property that they know has a leaking roof. The seller does not want to disclose it. What should the licensee do?

  1. Disclose only if a buyer specifically asks
  2. Follow the seller's instruction and remain silent
  3. Withdraw from the listing without explanation
  4. Refuse to withhold the defect and disclose it to prospective buyers Correct answer.

Explanation

Licensees must not conceal material defects. They have a duty to disclose facts that could affect a buyer's decision. Following the seller's instruction to conceal would violate the Act.

Question 42Real Estate Trading Act and Regulations

A salesperson employed by Brokerage A is offered a commission by a seller to represent them personally, outside the brokerage. What should the salesperson do?

  1. Accept if the seller signs a separate agreement
  2. Decline because all commissions must flow through the brokerage Correct answer.
  3. Accept only if the brokerage is not involved
  4. Accept and report it to the broker later

Explanation

Salespersons must conduct business through their brokerage. Commissions are paid to the brokerage, which then compensates the salesperson. Personal commissions outside the brokerage breach the Act.

Question 43Real Estate Trading Act and Regulations

A buyer wants to submit an offer below the asking price. The seller has instructed the licensee to present only offers above a certain price. What should the licensee do?

  1. Follow the seller's instruction and reject the offer
  2. Hold the offer until a higher one arrives
  3. Present all offers as required by law Correct answer.
  4. Inform the buyer of the seller's minimum price

Explanation

Licensees must present all offers promptly unless the seller has given written instructions to the contrary. Withholding an offer without written direction breaches the Act. Disclosing the seller's minimum price would breach confidentiality.

Question 44Real Estate Trading Act and Regulations

A brokerage is required to keep records of all trust transactions. For how long must these records generally be retained under the regulations?

  1. Until the next audit
  2. For at least two years
  3. For at least six years Correct answer.
  4. For at least ten years

Explanation

The regulations typically require trust records to be kept for six years. This allows for audits and investigations. Shorter periods do not meet the requirement.

Question 45Real Estate Trading Act and Regulations

A licensee is acting for both the buyer and the seller in the same transaction. What is this arrangement called under the Act?

  1. Subagency
  2. Designated agency
  3. Dual agency Correct answer.
  4. Transaction brokerage

Explanation

Representing both parties in the same trade is dual agency. It requires written disclosure and consent from both parties. Designated agency and transaction brokerage are different concepts.

Question 46Real Estate Trading Act and Regulations

A licensee has a personal financial interest in a property that they are listing for a seller. What must the licensee do?

  1. Disclose the interest in writing to the seller and any buyers Correct answer.
  2. Sell the property without a listing agreement
  3. Avoid disclosing because it is a personal matter
  4. Transfer the listing to another salesperson without disclosure

Explanation

Any interest a licensee has in a property must be disclosed in writing. This allows the client to assess potential conflicts. Transferring the listing does not eliminate the need for disclosure.

Question 47Real Estate Trading Act and Regulations

A salesperson's licence is about to expire. What must the salesperson do to continue trading legally?

  1. Renew the licence before the expiry date Correct answer.
  2. Apply for a new licence as a broker
  3. Notify clients of the expiry and continue
  4. Continue trading and renew within 30 days after expiry

Explanation

A licence must be renewed before it expires to maintain legal authority to trade. Trading after expiry is unlicensed activity. There is no grace period that permits continued trading.

Question 48Real Estate Trading Act and Regulations

A brokerage is closing and has client funds in its trust account. What must the brokerage do with those funds?

  1. Send them to the Commission for holding
  2. Use them to pay the brokerage's final expenses
  3. Divide them among the salespersons as bonuses
  4. Transfer them to another brokerage or return them to the clients Correct answer.

Explanation

Client funds must be protected when a brokerage closes. They must be transferred to another brokerage or returned to the rightful owners. Using them for expenses or bonuses is prohibited.

Question 49Real Estate Trading Act and Regulations

A licensee is unsure whether a proposed referral fee to an unlicensed third party is permitted. Which principle applies under the Act?

  1. Referral fees are allowed if disclosed to the client
  2. Referral fees are allowed if the third party is a friend
  3. Referral fees are allowed if paid after closing
  4. Referral fees to unlicensed persons are prohibited Correct answer.

Explanation

The Act prohibits sharing commissions or fees with unlicensed persons for real estate services. Disclosure does not cure the prohibition. The timing of payment is irrelevant.

Question 50Real Estate Trading Act and Regulations

A licensee is asked to provide a market value opinion for a property as part of a real estate trade. Under the Act, what is required?

  1. The licensee may provide an opinion if it is not an appraisal Correct answer.
  2. The licensee must be a licensed appraiser
  3. The licensee must use a prescribed form
  4. The licensee must obtain written permission from the Commission

Explanation

Licensees may provide opinions of value in the course of a trade, but formal appraisals require an appraiser licence. The Act distinguishes between these activities. Commission permission or prescribed forms are not required.