Course 1 - Real Estate Essentials - Humber Real Estate Education

1121 Pages·2023·44.767 MB·English

by  Real Estate Council of Ontario (RECO)

V7
©2019 Real Estate Council of Ontario
V7.3
Module 1: Introducing the Real Estate Profession
Disclaimer: This is a reference document which contains pages from the Accessible eLearning module. You should
complete the eLearning module to proceed to the next step. Please note that the accessible module on the LMS
only contains the interactive pages and you need to go through the content of this document thoroughly to attempt
the interactive activities in the module.
Please use Adobe Acrobat Reader (Recommended version 9 or above) to navigate through this PDF.
Real Estate Salesperson Program ©2019 Real Estate Council of Ontario. All Rights Reserved. No part of this publication may
be reproduced, stored in a retrieval system, or transmitted, in any form or in any means – by electronic, mechanical,
photocopying, recording or otherwise without prior written permission, except for the personal use of the Real Estate
Salesperson Program learner.
©2019 Real Estate Council of Ontario
Module 1 | Introducing the Real Estate Profession
This module provides an introduction to real estate and includes topics to help you understand what a career in real
estate entails.
A career in real estate can be very rewarding and provide you, as a salesperson, with many opportunities. There are
also realities and challenges that you will need to consider as you move forward in your career.
Real estate trading in Ontario is a regulated sector, with legislation guiding the practices and conduct of real estate
professionals. These regulations are in place to support a fair, safe, and informed real estate market for consumers
in Ontario.
Every real estate transaction is different. In this module, you will learn how, through building on specific skills and
continuing to expand your knowledge, you can become a professional and competent salesperson. You will also be
introduced to common activities that a salesperson would undertake when working with sellers and buyers, and
learn how different market conditions could impact those activities and your schedule. Finally, the module will
explain the importance of budgeting and considerations when working for remuneration that is often commission-
based.
By learning about what to expect in a career in real estate early in the program, you can begin to plan and get ready
for your exciting new journey!
You also need to navigate through the online version of this module to move further in the course.
©2019 Real Estate Council of Ontario
While navigating through the online module, click the Legislation button to view laws and regulations related to
this module.
While navigating through the online module, click the KMS button to access the Knowledge Management System
or visit the Module Resources to find the list of all the KMS assets for this module.
The contents of the thumbnail icon and References from the module are added to support your learning throughout
this Accessible PDF.
©2019 Real Estate Council of Ontario
Welcome to the Real Estate Profession!
Congratulations on choosing to embark on your journey to a vibrant and exciting career in real estate.
Real estate salespersons play an important role in helping consumers make decisions about what might be their
most important financial transaction. Successful salespersons build rapport with sellers, buyers and other
professionals, providing competent and professional service, to earn their trust.
RECO’s vision for the Real Estate Salesperson Program is clear; it will enable new salespeople to meet the demands
of tomorrow by having the knowledge and skills they need to be practice ready on day one.
As you progress through the program, you will develop the technical knowledge and personal skills that will help
you become a professional and competent salesperson. Success in real estate is not immediate or guaranteed; it
requires dedication, hard work, long hours, and a positive attitude.
You have taken a first big step toward a career in real estate. I wish you every success.
©2019 Real Estate Council of Ontario
Menu: Introducing the Real Estate Profession
Number of Lessons 6 Lessons
Lesson Number Lesson Name
Lesson 1 Regulatory Environment
Lesson 2 Education and Registration Requirements
Lesson 3 Skills Used by a Salesperson
Lesson 4 Salesperson’s Role, Tasks and Activities
Lesson 5 Remuneration and Budgeting
Module Summary
©2019 Real Estate Council of Ontario
Lesson 1 | Page 1 of 10
Lesson 1: Regulatory Environment
This lesson introduces you to the regulatory environment - the Real Estate and Business Brokers Act (REBBA), which
includes a Code of Ethics and additional regulations, the role of the provincial government in regulating real estate
trading, and the role of the Real Estate Council of Ontario (RECO).
It also provides an overview of the terms used to describe the role of different real estate professionals. The lesson
ends with a summary of a salesperson’s interactions with sellers and buyers.
©2019 Real Estate Council of Ontario
Lesson 1 | Page 2 of 10
This lesson provides an overview of the real estate regulatory environment in Ontario. Specifically, this lesson
introduces the following:
• The Real Estate and Business Brokers Act (REBBA) and associated Regulations
• The role of the Real Estate Council of Ontario (RECO) to enforce REBBA
• Requirements for brokerages, brokers, and salespersons to be registered with RECO
• Description of a brokerage, broker of record, broker, salesperson, and registrant
This lesson also outlines the relationships between a brokerage, a broker of record, a salesperson, and a seller or a
buyer.
Upon completion of this lesson, you will be able to:
• Define how the real estate profession is regulated in Ontario
• Describe a brokerage, broker of record, broker, salesperson, and registrant as set out in REBBA
• Describe the relationships between a brokerage, a salesperson, and a seller or a buyer
©2019 Real Estate Council of Ontario
Lesson 1 | Page 3 of 10
The Real Estate and Business Brokers Act (REBBA)
Real estate trading is regulated under the Real Estate and Business Brokers Act and associated regulations, collectively
referred to as REBBA. REBBA provides a framework for the responsive regulation of the real estate profession to
protect consumers and ensure the integrity of real estate transactions is upheld. In Ontario, the Ministry of Public
and Business Service is responsible for REBBA. Under REBBA, the word registrant refers to any individual or
brokerage that is registered to trade in real estate. You will see many references to REBBA and registrant as you
progress through the courses.
©2019 Real Estate Council of Ontario
Lesson 1 | Page 4 of 10
The Code of Ethics
The Code of Ethics (Code), one of the Regulations under REBBA, sets requirements for acceptable conduct by a
brokerage, broker, and salesperson when conducting business. The Code sets minimum standards to help ensure
no misunderstanding or ambiguity exists in the minds of sellers and buyers about what they should expect when
interacting with a real estate professional.
The fundamental objective of the Code is to protect sellers and buyers by outlining professional and ethical
standards to be upheld during all real estate activities.
The following three sections contain examples of a few obligations under the Code.
©2019 Real Estate Council of Ontario