ON Residential Transactions Exam key terms

The highest legal standard of care owed by an agent to a client, requiring loyalty, full disclosure, confidentiality, obedience to lawful instructions, and avoidance of conflicts of interest or personal gain.

A situation where a registrant's personal, financial, or other interest could compromise, or appear to compromise, their ability to act in the client's best interest without disclosure and consent.

A client has a formal agency relationship with the brokerage and receives fiduciary duties; a customer is served without agency and receives only fairness, honesty, and factual disclosure.

Information that could reasonably influence a buyer's or seller's decision to enter or complete a transaction, such as hidden defects, zoning changes, or pending litigation affecting the property.

Compensation paid to a brokerage for services under a representation agreement, typically calculated as a percentage of the sale price or a flat fee, and negotiable between the parties.

A licensed entity through which registrants trade in real estate; it holds deposits and commissions and is legally responsible for the conduct of its salespersons and brokers.

Provincial legislation governing the ownership, transfer, and registration of interests in land, including the land titles or registry system used to record title and encumbrances.

A legal principle requiring that contracts for the sale of land be evidenced in writing and signed by the party to be charged, otherwise they may be unenforceable.

Laws that prohibit unfair business practices, misleading advertising, and certain cancellation rights in consumer transactions, and that can apply to real estate marketing and contracts.

Laws prohibiting discrimination in the provision of services and accommodation on protected grounds such as race, religion, family status, or disability, affecting how listings are advertised and housing is offered.

A legal relationship in which one party (the agent) is authorized to act on behalf of another (the principal) and owes that principal fiduciary obligations in dealings with third parties.

A model in which a brokerage appoints one or more specific registrants to represent a client, so that other registrants at the same brokerage can represent a different party to the transaction.

When the same brokerage represents more than one party to a transaction, such as both buyer and seller, requiring informed written consent and careful management of confidentiality and loyalty.

A written contract between a seller and a brokerage authorizing the brokerage to market the property, setting out the listing price, term, commission, and the services to be provided.

A written contract between a buyer and a brokerage that defines the scope of services, the term, the geographic area, and how the brokerage will be compensated.

A listing arrangement in which the seller appoints one brokerage for a set period, and commission may be payable even if the seller finds the buyer independently during that term.

Marketing that contains false, deceptive, or unsubstantiated claims, or that omits information needed to prevent a reasonable person from being misled about a property or service.

A disclosure form in which a seller answers questions about the property's condition, improvements, and known defects; it is not a warranty but can create liability if inaccurate.

An analysis of recently sold, active, and expired comparable properties used to estimate a likely sale price range and to support a listing price recommendation.

A professional, often lender-required estimate of a property's market value prepared by a qualified appraiser using recognized valuation methods and property inspection.

The written contract in which a buyer agrees to purchase and a seller agrees to sell a property, setting out price, deposit, conditions, closing date, and included items.

A contract term that makes the agreement binding only if a specified event occurs, such as financing approval or a satisfactory home inspection, by a stated deadline.

Money paid by the buyer on signing to show good faith and secure the agreement, typically held in trust by the listing brokerage and credited toward the purchase price at closing.

A condition allowing the buyer a set period to obtain mortgage approval; if the buyer cannot, they may terminate the agreement and recover the deposit without penalty.

A lender's written indication of the maximum loan amount and rate it is prepared to offer a borrower, subject to verification of income, credit, and property appraisal.

A registration system in which the government guarantees title, and a purchaser relying on the register acquires good title subject to recorded interests and statutory exceptions.

Any registered right or interest in land that burdens the owner's title, such as a mortgage, easement, lien, restrictive covenant, or right-of-way.

A registered right allowing one party to use another's land for a specific purpose, such as a utility line or shared driveway, without owning that land.

A review of public land records to confirm ownership, identify registered encumbrances, and verify that the seller can convey clear title on closing.

A hidden physical problem with a property that is not readily discoverable by reasonable inspection and that the seller may be obliged to disclose if it makes the property dangerous or unfit.

A visual examination of a property's systems and structure by a qualified inspector, intended to identify defects and inform the buyer's decision or condition negotiations.

A property affected by a non-physical issue, such as a past crime, suicide, or alleged haunting, that may deter buyers but does not affect the physical condition of the property.

The final stage of a transaction when funds are transferred, the deed and mortgage are registered, keys are released, and ownership passes to the buyer.

A closing document allocating property taxes, utilities, rents, and other expenses between buyer and seller as of the closing date, producing a final credit or debit.

A dedicated bank account in which a brokerage holds client money, such as deposits, separate from operating funds, with strict recordkeeping and reconciliation requirements.

A contract between a landlord and tenant granting the right to occupy a rental unit, governed by provincial tenancy legislation that sets notice, rent, and eviction rules.

Money a landlord may collect from a tenant, within statutory limits, to cover unpaid rent or damage beyond normal wear and tear, held and returned according to tenancy law.

A legal entity created on registration of a condominium plan that owns and manages common elements and enforces the declaration, bylaws, and rules.

A document a condominium corporation must provide on request, disclosing financial status, reserve fund, litigation, and defaults, which buyers review before waiving conditions.

The shared portions of a condominium property, such as hallways, elevators, and recreational facilities, owned collectively by unit owners through the corporation.

Money a condominium corporation collects from owners and sets aside for major future repairs and replacements of common elements, guided by periodic studies.