Humber/Ontario Real Estate Course 1 Exam Practice

Which entity regulates real estate transactions and enforces compliance in Ontario?

1. Ontario Real Estate Association (OREA)

2. Canada Mortgage and Housing Corporation (CMHC)

3. Real Estate Council of Ontario (RECO)

4. Ontario Ministry of Housing

5. Canadian Real Estate Association (CREA)

6. Real Property Association of Canada

The correct answer is: Real Estate Council of Ontario (RECO)

The correct answer is the Real Estate Council of Ontario (RECO). This entity is responsible for regulating real estate transactions in Ontario, ensuring that real estate professionals adhere to the laws and standards set out by the Real Estate and Business Brokers Act. RECO's mandate includes enforcing compliance through licensing, education, and ongoing professional oversight. The agency plays a critical role in protecting the public interest by ensuring that real estate practitioners operate fairly and ethically, which is key to maintaining trust in the real estate market. Additionally, RECO provides resources and information to both consumers and real estate professionals, supporting a transparent and well-informed marketplace. Other entities mentioned have different focuses: the Ontario Real Estate Association (OREA) primarily works to support and advocate for real estate professionals in the province, rather than overseeing compliance; the Canada Mortgage and Housing Corporation (CMHC) is involved in housing policy and mortgage insurance; the Ontario Ministry of Housing oversees housing policy and development but does not regulate real estate transactions directly; the Canadian Real Estate Association (CREA) advocates for real estate professionals across Canada and promotes industry standards; and the Real Property Association of Canada focuses on the commercial real estate sector rather than residential transactions. Each of these organizations has its role, but RECO is specifically