ON Real Estate Sim 1 cheat sheet

The Real Estate Act sets the statutory framework: registration of brokerages and individuals, licensing categories, conduct standards, and discipline; regulations and council bylaws fill in procedural detail.

Licence categories typically include broker, associate broker (or broker's associate), and representative/salesperson; only a broker may operate a brokerage and hold trust money authority.

Registration is required before trading in real estate for others for remuneration; unlicensed trading is an offence subject to fines and/or imprisonment under the Act.

The regulator (e.g., a real estate council) administers licensing, education, errors-and-omissions insurance requirements, and discipline; it is not a trade association and does not set commission rates.

Discipline penalties range from letters of reprimand and fines to licence suspension or cancellation; administrative penalties can apply without a full hearing.

Trust money must be held in a designated trust account and reconciled monthly; commingling with operating funds is prohibited.

Continuing education is a licence condition: failure to complete required credits by the deadline results in licence suspension, not merely a warning.

Advertising rules require the brokerage name and, where required, the registrant's name and licence category on all advertising, including online and social media.

Agency is a fiduciary relationship created by written agreement; the brokerage, not the individual licensee, is the agent, and the licensee acts on the brokerage's behalf.

Fiduciary duties owed to a client: loyalty, obedience to lawful instructions, disclosure, confidentiality, accounting, and reasonable care and skill.

Agency types include sole agency, designated agency (separate licensees represent each side within one brokerage), and transaction/limited representation with reduced duties.

Dual agency arises when the same brokerage represents both buyer and seller; it requires informed written consent and disclosure of material information to both parties.

Confidential information learned in an agency relationship survives termination of the agreement and cannot be used against the former client.

A customer is unrepresented; the licensee still owes honesty, fairness, disclosure of material facts about the property, and reasonable care.

Material facts that must be disclosed regardless of agency include latent defects, stigmatized-property events where required by law, and known encroachments.

Commission is negotiable and set by contract; an agency agreement must state the term, the fee, and the services provided, and must be signed by the client.

A valid contract requires offer, acceptance, consideration, capacity, legality of object, and mutual intention; real property contracts must be in writing under the statute of frauds.

An offer becomes binding when acceptance is communicated to the offeror in the manner specified; a counter-offer extinguishes the original offer.

Standard conditions precedent include financing, property inspection, and condominium document review; each has a waiver/review date by which the buyer must act.

The deposit is held in trust and credited to the purchase price at completion; it is not automatically forfeited unless the contract says so and the buyer defaults.

Time is of the essence: dates for conditions, completion, and possession are strict; failure to close on the completion date is a breach.

Remedies for breach include specific performance, damages, and forfeiture of deposit; the seller must mitigate losses.

The completion (closing) date transfers title and the purchase price balance; adjustments cover prepaid taxes, utilities, and rents as of the adjustment date.

Misrepresentation - a false statement of fact that induces the contract - supports rescission or damages; opinion and puffery do not.

Real property includes land, fixtures, and appurtenances; fixtures are chattels affixed to land with intention of permanence - determined by degree of attachment and purpose.

Estates in land: fee simple (largest interest), life estate, and leasehold estates; lesser interests include easements, licences, and restrictive covenants.

An easement is a right to use another's land (e.g., right of way); it runs with the land and must be registered to bind subsequent purchasers.

A restrictive covenant limits use of land for the benefit of neighbouring land; the benefiting and burdened lands must be identified.

Encumbrances include mortgages, liens, easements, covenants, and encroachments; they appear on title search and must be addressed before completion.

Joint tenancy carries the right of survivorship; tenancy in common does not, and each owner's share passes to their estate.

Matrimonial or family property legislation can create possessory rights in a home even when one spouse is not on title.

Adverse possession requires open, notorious, exclusive, continuous possession for the statutory period; many jurisdictions have abolished it for registered land.

Torrens/land titles systems register title itself, so the registered owner holds title subject only to registered encumbrances and statutory exceptions; indefeasibility protects a bona fide purchaser for value.

The old registry system records documents, not title, so the buyer must trace the chain of title and verify each instrument.

A title search reveals the registered owner, legal description, encumbrances, and registered interests; a real property report or survey shows physical boundaries and encroachments.

Title insurance covers title defects, survey issues, and fraud, and is generally purchased by the buyer at closing.

Ownership interests include freehold (fee simple), condominium (unit plus common-element share), cooperative (shares in a corporation), and leasehold.

Condominium ownership adds a strata corporation, bylaws, common expenses, and reserve funds; the status certificate or estoppel package discloses financial and legal issues.

Co-ownership forms: joint tenancy (survivorship) versus tenancy in common (distinct shares, no survivorship).

A transfer must be registered to pass legal title; unregistered agreements and trusts may create beneficial interests only.

A mortgage pledges real property as security for a debt; the mortgagor is the borrower and the mortgagee the lender. A charge under land titles performs the same function.

Qualifying ratio limits: gross debt service (GDS) compares housing costs to gross income; total debt service (TDS) adds all other debts; typical maxima are 32% GDS and 40% TDS.

Loan-to-value (LTV) = loan amount ÷ property value; high-ratio mortgages (LTV above 80%) require default insurance.

Blended payment formula: P = A × [i(1+i)^n] ÷ [(1+i)^n − 1], where A is principal, i is periodic rate, n is number of payments.

Canadian fixed-rate mortgages compound semi-annually, not in advance; convert the nominal rate to the effective periodic rate before using payment formulas.

Amortization is the schedule of principal and interest over the loan term; term is the period the contract rate is fixed; a longer amortization lowers payments but raises total interest.

Prepayment privileges, penalties (often three months' interest or interest-rate differential), and portability are negotiated contract terms, not statutory rights.

Closing costs include land transfer tax, legal fees, title insurance, adjustments, and appraisal fees; the lender requires proof of down payment and closing funds.

Three approaches to value: sales comparison (residential), cost approach (special-purpose or new construction), and income approach (commercial).

Market value is the most probable price in an arm's-length sale after reasonable exposure, with both parties informed and not under duress.

The sales comparison approach adjusts comparables for differences in location, size, age, condition, and features; adjustments are made to the comparable, not the subject.

Gross rent multiplier (GRM) = sale price ÷ gross annual rent; it is a quick screening tool, not a full income valuation.

Capitalization rate = net operating income ÷ property value; value = NOI ÷ cap rate. Cap rates rise as risk rises, lowering value.

Cost approach: value = replacement cost new − depreciation + land value.

Highest and best use is the reasonably probable, legal, physically possible, financially feasible use that produces the greatest value.

Appraisal reports must comply with professional standards and disclose assumptions, limiting conditions, and any interest the appraiser has in the property.

Zoning regulates use, density, height, setbacks, and parking by zone; a conforming use meets current rules, a legal non-conforming use predates them and may continue with limits.

Variances relieve hardship from strict application of zoning; a rezoning changes the zone itself; a minor variance addresses small dimensional relief.

Official plans and municipal planning documents set long-term land use policy; zoning bylaws must be consistent with them.

Development approval may require site plan control, subdivision approval, and public consultation before permits issue.

Environmental risks include designated substances (asbestos, lead, urea-formaldehyde), underground storage tanks, and contaminated soil; Phase I is a records review, Phase II involves sampling.

Potentially contaminated sites can trigger regulatory orders against current and prior owners; environmental site assessments and indemnities are due-diligence tools.

Wetlands, floodplains, and shorelines are often regulated by conservation authorities or equivalent bodies, adding permit requirements.

Heritage designation and archaeological potential can restrict demolition and excavation and add approval steps.

Structural systems: platform framing with joists and studs, post-and-beam, and masonry; load-bearing walls cannot be removed without engineering.

Roofing: asphalt shingles, metal, and membrane systems; flashing at valleys, chimneys, and penetrations is the most common leak source.

Electrical: service size in amperes, panel type, grounding, GFCI protection near water, and aluminium branch wiring are key inspection items.

Plumbing: supply materials (copper, PEX) and drain materials (ABS, cast iron); polybutylene and lead service lines are concerns.

HVAC: forced-air furnace efficiency (AFUE), air-conditioning rating (SEER), heat pumps, and duct condition; combustion appliances need proper venting.

Insulation is rated by R-value; vapour barriers belong on the warm side in heating climates; poor attic ventilation causes condensation and ice damming.

Moisture and foundation: basement dampness, cracks, efflorescence, and grading that slopes toward the building are common defects.

A home inspection is a visual, non-invasive opinion on condition at the time of inspection; it is not a warranty and does not cover concealed defects.

Net operating income (NOI) = effective gross income − operating expenses; it excludes mortgage payments, capital costs, and income taxes.

Investment return measures: cap rate (NOI ÷ price), cash-on-cash return (pre-tax cash flow ÷ equity invested), and internal rate of return over the holding period.

Lease types: gross (landlord pays expenses), net (tenant pays taxes, insurance, maintenance), and triple net; lease structure drives NOI risk.

Commercial leases address term, rent escalations, options to renew, tenant improvements, and assignment/subletting rights.

Due diligence includes rent rolls, operating statements, estoppel certificates, environmental reports, and building condition assessments.

A sale of a business or leased premises may require landlord consent; the purchaser assumes existing leases unless the contract states otherwise.

Financing metrics: debt service coverage ratio (DSCR) = NOI ÷ annual debt service; lenders typically require 1.20 or higher.

Vacancy and credit loss reduce effective gross income; a stabilized versus non-stabilized property changes the appropriate valuation method.

Duties to the public include honesty, fairness, and disclosure of material facts; duties to clients add fiduciary obligations.

Confidentiality continues after the agency relationship ends; it does not excuse withholding material facts about the property from the other party.

Commissions are negotiable and cannot be fixed by agreement among competitors; antitrust law prohibits price-fixing and group boycotts.

Handling of trust money requires accurate records, timely deposits, and no personal use; misappropriation is grounds for licence revocation.

Risk management: document instructions, use written agreements, recommend independent legal and inspection advice, and avoid giving legal or tax opinions.

Disclosure of interest: a licensee must disclose any personal interest in a property or transaction, including a referral benefit.

Advertising and social media posts must be accurate, not misleading, and identify the brokerage; testimonials require consent.

Errors-and-omissions insurance and a complaints process protect the public; the regulator can discipline regardless of civil settlement.

Registrants must be licensed in the jurisdiction where the trade occurs; out-of-province or out-of-country licences do not authorize local trading.

A brokerage must designate a broker who is responsible for supervision, trust accounts, and record-keeping.

Records of dealings, trade records, and trust reconciliations must be retained for the period set by regulation and produced on request.

The regulator may suspend a licence immediately where there is risk to the public, pending a hearing.

Advertising and representations must not be false, misleading, or deceptive; this applies to listing descriptions, social media, and verbal statements.

Licensees must disclose conflicts of interest and cannot act for more than one party without informed written consent.

Failure to remit or account for trust money can lead to criminal charges in addition to regulatory discipline.

Consumer complaints trigger a review; the regulator may mediate, investigate, or refer to a discipline committee.

An agency agreement must be in writing and specify the parties, the property, the term, the services, and the remuneration.

Designated agency allows one brokerage to represent both buyer and seller through different licensees, with confidentiality maintained between them.

The licensee must disclose in writing, at the earliest opportunity, whom they represent and the type of representation.

A buyer's agent owes loyalty to the buyer, including negotiating the best price and terms and disclosing known facts about the seller's motivation.

A seller's agent must present all offers promptly and follow lawful instructions on price and terms.

A licensee cannot use confidential information from a former client to the disadvantage of that client.

Referral fees between brokerages must be disclosed and paid through the brokerage, not personally.

Agency does not authorize the licensee to sign for the client or to receive trust funds outside brokerage procedures.

The standard form of agreement of purchase and sale includes the parties, property description, price, deposit, chattels and fixtures, conditions, completion date, and remedies.

Chattels and fixtures included in the sale must be listed; ambiguity is resolved against the party who drafted the clause.

A condition precedent must be satisfied or waived by the stated date; otherwise the agreement becomes void and the deposit is returned.

An escape clause or right of first refusal operates as drafted; a seller may accept a backup offer subject to the condition.

Assignment of the agreement requires the contract's permission; without it, assignment is a breach.

A deposit is generally held by the listing brokerage in trust; the agreement should state who holds it and how disputes are resolved.

The seller warrants title and quiet possession unless the agreement says otherwise; the buyer is responsible for verifying title.

Amendments must be in writing and signed by both parties; oral variations are generally unenforceable.

A licence is permission to enter land and is personal and revocable; an easement is an interest in land that binds successors.

Easements can be created by express grant, implication, necessity, or prescription; they must be registered to bind a purchaser for value.

A restrictive covenant runs with the land if it touches and concerns the land and the original parties intended it to run.

Encroachments are structures that cross a property line; they may be resolved by agreement, easement, or removal.

Fixtures pass with the land unless excluded; tenant's fixtures installed for trade may be removable.

A life estate grants possession for a person's lifetime; the remainderman holds the future interest.

Co-ownership: joint tenants hold one undivided interest with survivorship; tenants in common hold distinct shares that pass by will or intestacy.

A mortgage is an interest in land; on default the lender may pursue power of sale or judicial sale according to the statute.

The registered owner under a land titles system holds title free of unregistered interests except statutory exceptions and fraud.

A purchaser must search title before completion and register the transfer immediately after closing to protect priority.

Title insurance covers unknown defects, survey errors, and fraud; it does not replace a title search.

A strata or condominium corporation owns common property; unit owners own their units and share common expenses.

A cooperative owner holds shares in a corporation that owns the building and receives a lease or occupancy agreement.

A leasehold interest is an estate for a term; the landlord retains the reversion.

A mortgage or charge appears on title and must be discharged on closing; the buyer's lawyer obtains a discharge statement.

A real property report or survey shows buildings, fences, and encroachments; the buyer should review it before removing conditions.

GDS = (principal, interest, taxes, heating) ÷ gross income; TDS = (housing costs + other debt payments) ÷ gross income.

LTV above 80% typically requires mortgage default insurance; above 95% is generally not permitted.

Payment frequency: monthly, semi-monthly, bi-weekly, or weekly; accelerated bi-weekly payments reduce amortization faster than standard bi-weekly.

Effective annual rate for semi-annual compounding: (1 + i/2)^2 − 1, where i is the nominal annual rate.

Monthly payment from principal A, monthly rate r, and number of payments n: P = A × r(1+r)^n ÷ [(1+r)^n − 1].

Outstanding balance after k payments = A × [(1+r)^n − (1+r)^k] ÷ [(1+r)^n − 1].

Closing costs: land transfer tax, legal fees, title insurance, adjustments, and inspection; lenders verify down payment source.

A prepayment penalty is often the greater of three months' interest or the interest-rate differential; it is set by the mortgage contract.

Sales comparison approach: value = adjusted sale price of comparables; adjust for time, location, lot size, living area, age, condition, and features.

Cost approach: value = replacement cost new − physical, functional, and external obsolescence + land value.

Income approach: value = net operating income ÷ capitalization rate; cap rate reflects risk and market expectations.

Gross income multiplier = sale price ÷ gross income; useful for quick comparison of similar income properties.

Market value assumes an arm's-length transaction, reasonable exposure, informed parties, and no undue stimulus.

Highest and best use must be legally permissible, physically possible, financially feasible, and maximally productive.

Reconciliation weights the approaches based on the property type and reliability of data; the final opinion is not a simple average.

An appraisal is an opinion of value as of a specific date; it is not a guarantee of sale price.

A legal non-conforming use may continue but generally cannot be expanded; if discontinued for the statutory period, the right may be lost.

A variance addresses undue hardship from the bylaw; a rezoning changes the permitted use and requires council approval and public process.

Site plan control addresses building placement, landscaping, parking, and servicing; it is often a condition of development approval.

Official plans set policy; zoning bylaws implement it; both can be appealed within statutory time limits.

Phase I environmental site assessment reviews records and site history; Phase II involves sampling and testing.

Contamination can result in regulatory orders against current and former owners; environmental insurance and indemnities allocate risk.

Floodplains and wetlands may be regulated by conservation authorities, requiring permits for fill or construction.

Heritage designation can delay or prevent demolition and require approval for alterations.

Load-bearing walls, beams, and columns cannot be altered without engineering; non-load-bearing partitions can often be removed.

Roof coverings: asphalt shingles (15–25 years), metal, clay tile, and membrane; check flashing, valleys, and penetrations.

Electrical service is rated in amperes (e.g., 100A, 200A); GFCI protection is required near water; aluminium branch wiring is a concern.

Plumbing supply materials include copper and PEX; drain materials include ABS and cast iron; polybutylene has a history of failure.

Heating efficiency is measured by AFUE for furnaces and SEER for air conditioners; combustion appliances require proper venting.

Insulation R-value measures thermal resistance; vapour barriers belong on the warm side in heating climates.

Foundation issues include cracks, settlement, efflorescence, and poor grading; these can indicate water penetration.

A home inspection is a non-invasive visual review and is not a warranty; concealed defects may not be discoverable.

NOI = effective gross income − operating expenses; it excludes debt service, capital expenditures, and income taxes.

Cap rate = NOI ÷ price; cash-on-cash return = pre-tax cash flow ÷ equity invested; IRR accounts for the time value of all cash flows.

Lease structures: gross, net, and triple net; the lease determines who pays taxes, insurance, and maintenance.

DSCR = NOI ÷ annual debt service; lenders commonly require 1.20 or higher.

Due diligence includes rent roll, operating statements, estoppel certificates, environmental reports, and building condition assessments.

A sale of a leased property is subject to existing leases unless the contract states otherwise; estoppel certificates confirm lease terms.

Vacancy and credit loss reduce effective gross income; stabilized NOI is used for valuation of a stabilized property.

Tenant improvements and leasing commissions are capital costs that affect cash flow and value.

Fiduciary duties: loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care and skill.

Confidentiality survives termination but does not permit withholding material facts about the property from the other party.

Commissions are negotiable; price-fixing and group boycotts violate antitrust law.

Trust money must be deposited promptly, recorded accurately, and never commingled with operating funds.

Disclose any personal interest in a property or transaction and any referral benefit in writing.

Advertising must be accurate, identify the brokerage, and not mislead; testimonials require consent.

Recommend independent legal, tax, and inspection advice; do not give legal or tax opinions.

Errors-and-omissions insurance and a documented complaints process are core risk-management tools.

Licensing categories: broker, associate broker, and representative/salesperson; only a broker may operate a brokerage.

Registration is required before trading in real estate for others for remuneration; unlicensed trading is an offence.

The regulator administers licensing, education, insurance requirements, and discipline; it is not a trade association.

Discipline penalties include reprimand, fines, suspension, and cancellation; administrative penalties may apply without a full hearing.

Trust accounts must be reconciled monthly and audited; commingling is prohibited.

Continuing education credits are a licence condition; missing the deadline results in suspension.

Advertising must include the brokerage name and, where required, the registrant's name and licence category.

Records of dealings and trust reconciliations must be retained for the period set by regulation.

The brokerage, not the individual licensee, is the agent; the licensee acts on the brokerage's behalf.

Agency types: sole agency, designated agency, and transaction/limited representation with reduced duties.

Dual agency requires informed written consent and disclosure of material information to both parties.

A customer is unrepresented; the licensee still owes honesty, fairness, and reasonable care.

Material facts must be disclosed regardless of agency, including latent defects and known encroachments.

Commission is negotiable and set by contract; the agency agreement must state term, fee, and services.

Confidential information survives termination and cannot be used against the former client.

A licensee cannot sign for the client or receive trust funds outside brokerage procedures.

A valid contract requires offer, acceptance, consideration, capacity, legality, and intention; real property contracts must be in writing.

A counter-offer extinguishes the original offer; acceptance must be communicated in the manner specified.

Conditions precedent include financing, inspection, and condominium document review, each with a waiver date.

The deposit is held in trust and credited to the purchase price; forfeiture requires contractual default.

Time is of the essence: completion and possession dates are strict.

Remedies for breach include specific performance, damages, and deposit forfeiture; the seller must mitigate.

Adjustments at closing cover prepaid taxes, utilities, and rents as of the adjustment date.

Misrepresentation - a false statement of fact that induces the contract - supports rescission or damages.

Fixtures are chattels affixed to land with intention of permanence; degree of attachment and purpose determine status.

Estates: fee simple, life estate, and leasehold; lesser interests include easements, licences, and covenants.

An easement must be registered to bind subsequent purchasers; a licence is personal and revocable.

A restrictive covenant must identify benefiting and burdened lands and touch and concern the land.

Encumbrances include mortgages, liens, easements, covenants, and encroachments.

Joint tenancy carries survivorship; tenancy in common does not.

Matrimonial or family property legislation can create rights in a home even when one spouse is not on title.

Adverse possession requires open, notorious, exclusive, continuous possession for the statutory period.

Land titles registers title itself; the registered owner holds title subject to registered encumbrances and statutory exceptions.

The old registry system records documents; the buyer must trace the chain of title.

A title search reveals owner, legal description, encumbrances, and registered interests.

Title insurance covers title defects, survey issues, and fraud; it does not replace a title search.

Ownership forms: freehold, condominium, cooperative, and leasehold.

Condominium ownership adds a corporation, bylaws, common expenses, and reserve funds; the status certificate discloses financial issues.

Joint tenancy has survivorship; tenancy in common has distinct shares.

A transfer must be registered to pass legal title.

A mortgage pledges real property as security for a debt; the mortgagor is the borrower and the mortgagee the lender.

GDS compares housing costs to gross income; TDS adds other debts; typical maxima are 32% GDS and 40% TDS.

LTV = loan ÷ value; above 80% typically requires default insurance.

Blended payment: P = A × i(1+i)^n ÷ [(1+i)^n − 1].

Canadian fixed-rate mortgages compound semi-annually, not in advance; convert to the effective periodic rate first.

Amortization is the payment schedule; term is the period the contract rate is fixed.

Prepayment penalties are often three months' interest or an interest-rate differential.

Closing costs include land transfer tax, legal fees, title insurance, adjustments, and appraisal fees.

Three approaches: sales comparison, cost, and income.

Market value is the most probable price in an arm's-length sale after reasonable exposure.

Adjustments in the sales comparison approach are made to the comparable, not the subject.

GRM = sale price ÷ gross annual rent; it is a screening tool.

Cap rate = NOI ÷ value; value = NOI ÷ cap rate.

Cost approach: value = replacement cost new − depreciation + land value.

Highest and best use must be legal, physically possible, financially feasible, and maximally productive.

Appraisal reports must disclose assumptions, limiting conditions, and any interest the appraiser has in the property.

Zoning regulates use, density, height, setbacks, and parking; a legal non-conforming use predates current rules.

A variance relieves hardship; a rezoning changes the zone; a minor variance addresses small dimensional relief.

Official plans set policy; zoning bylaws must be consistent with them.

Development approval may require site plan control, subdivision approval, and public consultation.

Designated substances include asbestos, lead, and urea-formaldehyde; underground storage tanks and contaminated soil are environmental risks.

Phase I is a records review; Phase II involves sampling and testing.

Contamination can trigger orders against current and prior owners; environmental site assessments and indemnities are due-diligence tools.

Wetlands, floodplains, and shorelines may be regulated by conservation authorities.

Structural systems: platform framing, post-and-beam, and masonry; load-bearing walls require engineering before removal.

Roofing: asphalt shingles, metal, and membrane; flashing at valleys and penetrations is a common leak source.

Electrical: service amperes, panel type, grounding, GFCI protection, and aluminium branch wiring are key inspection items.

Plumbing: copper and PEX supply; ABS and cast iron drains; polybutylene and lead service lines are concerns.

HVAC: AFUE for furnaces, SEER for air conditioners, heat pumps, and duct condition; combustion appliances need venting.

Insulation R-value measures thermal resistance; vapour barriers belong on the warm side in heating climates.

Moisture and foundation: basement dampness, cracks, efflorescence, and grading that slopes toward the building.

A home inspection is a visual, non-invasive opinion on condition; it is not a warranty.

NOI = effective gross income − operating expenses; it excludes debt service, capital costs, and income taxes.

Return measures: cap rate, cash-on-cash return, and IRR over the holding period.

Lease types: gross, net, and triple net; lease structure drives NOI risk.

Commercial leases address term, escalations, renewal options, tenant improvements, and assignment rights.

Due diligence includes rent rolls, operating statements, estoppel certificates, environmental reports, and building condition assessments.

A sale of leased premises may require landlord consent; the purchaser assumes existing leases unless the contract states otherwise.

DSCR = NOI ÷ annual debt service; lenders typically require 1.20 or higher.

Vacancy and credit loss reduce effective gross income; stabilized versus non-stabilized property changes the valuation method.

Duties to the public: honesty, fairness, and disclosure of material facts; duties to clients add fiduciary obligations.

Confidentiality continues after the agency relationship ends.

Commissions are negotiable; antitrust law prohibits price-fixing and group boycotts.

Trust money requires accurate records, timely deposits, and no personal use; misappropriation is grounds for revocation.

Document instructions, use written agreements, and recommend independent legal and inspection advice.

Disclose any personal interest in a property or transaction, including referral benefits.

Advertising must be accurate, not misleading, and identify the brokerage.

Errors-and-omissions insurance and a complaints process protect the public; the regulator can discipline regardless of civil settlement.