Module 1: Introducing the Real Estate Profession

Lesson 1: Regulatory Environment

The Code of Ethics 1. Fairness and Honestry; 2. Conscientious and
Competent Service; 3. Services from others(if
the salesperson doesn’t have such
experience)
RECO 1. Administer REBBA on behalf of provincial
government
2. RECO’s mission is to support a fair safe and
informed real estate market.
3. Ministry of Government and Consumer
Services is responsible for REBBA and RECO is
to interpret, enforce and suggest modification
for REBBA.

Lesson 2: Education and Registration Requirements

Requirement to Step 1 complete registration education requirements;
become a registered Step 2: registered with RECO
salesmen 12 months to find an employer. Then register with RECO.
Step 3: Purchase insurance coverage (annually) ( 在
registration 的时候购买)
Insurance coverage 3 types: omission and errors, client’s
deposit; commission
24 months （from the date of finishing the pre-registration
education phase ） to complete post-registration education
program.
Registration with RECO shall be renewed every two years.
Reco can accept application without criminal record but will
not process the applciaiton until they receive the original.

Lesson 3 skills used by salesperson

Lesson 4: Salesperson’s Role, Tasks, and Activities
Types of markets Seller’s market buyer’s market and balance market
Different type Residential: irregular work hours/disruption of
life/high demand/
Commercial: doing more research and improving
konweldge.
Lesson 5: Commission and Budgeting
Commission DAS rule: Distribution between brokerages;
allocation between listing and selling portions;
Split between listing and selling salesperson.

1
Module 2 introducing the fundamentals of Real Estate
Lesson 1: Introduction to Real Estate Terminology, and Types of Residential and
Commercial Structures
Trade A trade is relating to any actions or words Sale of a business,
relating to : regardless of
1. Disposing or acquiring of an interest whether real
in real estate estate is involved
2. Seeking to dispose or acquire an or not, is viewed
interest in real estate as a trade under
3. Advertising of any real estate REBBA.
4. Negotiating of any real estate

Parties and activities in 卖 方 ： Listing Brokerage listing

a real estate salesperson “diverstiture“
transaction refers to sell in a
买方：co-operating brokerage （卖方 real estate
有中介）/Buyer’s brokerage (卖方无 transaction in
中介) REBBA.

Buyer’s salesperson

REBBA use “seller” “buyer” other may use

“vendor” “purchaser“
Landlord (lessor) /Tenant (lessee)

Type of relationship Representation-for client (agency relationship) Brokerage is the

between a brokerage Providing services- for customer. For agent, not the
and a seller or buyer customers, no fiduciary duty(including individual
confidentiality) and best interest, not an agent salesperson.
relationship;
One brokerage’s client can be another
brokerage’s customers, vice versa.
Terms relating to 1. Agreements shall be delivered to parties
agreement immediately.
2. Representation Agreement (with Client)
listing agreement (with seller); buyer’s
representation agreement (with buyer)
3. Commission agreements

2
 Terms relating to Real estate: tangible Improvements are
ownership Real property: real estate+intangible also used to refer
(bundle of right) to any structure
Chattel: not transferred or other
Fixture :transferred with real property permanent
Personal property include the above two. addition.
Transfer of title Title: legal ownership of land. Chain of title:
Deed is used under Registry and Charge is history. Root of
under Land title title
Completion date=closing date.
Mortgage term Mortgage under Registry Act--mortgagee Mortgagor
Charge under Land Titles Act-chargee chargor 借款方
Residential Structure Detached 和 attached
Detached 分 为 ： Bungalow ， Bi-
level/split entrance/one and one half
storey/two-storey/split level
Type of Attached 1. Semi-detached;
homes 2. townhouse(3 to more are jointed
together by party wall);
3. inked dwelling (2 or more single family
home joint together by some invisible
linked area such as garage);
4. multi-unit residential dwelling:Duplex,
triplex, fourplex
Commercial structure 6 common categories: office, retail, mixed Commercial
—use, multi-unit residential, industrial, Structure is
agriculture often defined
by their
Industrial structure Can be divided into 3 intended use.
groups (General purpose, special purpose,
single purpose) Commercial
General purpose building appeals more building can be
potential buyers. mixed-use

Real property /Real Real Property has both tangible and

estate intangible attributes, while real estate only
refers to tangible ones.

Lesson 2: Real Estate Governance and Industry Associations

Role of provincial Ministry of Government and Consumer Services is
government in real responsible for REBBA as well as oversight of
estate RECO.
RECO’s role Administer and Enforce REBBA

3
 RECO’s Mandate and Code of Ethics also referred to as the REBBA code
Mission of Ethics dealing with minimum business
standards for registrants

Realtor Code of Ethics is a separate code

established by CREA for its members.
RECO’s structure Board of Directors: comprised of 12 members and
3 of them are appointed by the Ministry and other
registered as brokers or salespersons; not
involving in day-to-day management

CEO:day-to-day management of RECO

Registrar
CREA, OREA and local Three level: CREA, provincial association/local real Registrant
real estate boards estate boards (3 way relationship) need to pay
CREA: overseeing all Canadian REALTOR, control fees to RECO
realtor.ca website and the local
By joining a real estate board, a salesperson board. Local
becomes a member of CREA and OREA. board wil
remit
applicable fees
to OREA and
CREA.
REIC, CCIM and SIOR Real Estate Institute of Canada （REIC） provided
advanced education and professional
development. Offer several professional specialty
designation, such as FRI, CPM, CLO, ARM

CCIM: certified commercial investment member

SIOR: Industry and office
Lesson 3: Roles Within a Brokerage
Broker of record Each brokerage must designate one broker of record, who
is registered with RECO and act as an employee of the
brokerage.

All trust checks must be signed by Broker of Record;

Multiple offices One main brokerage office and others are branches. A
branch with two or more registrants require direct
management by a broker or salesperson who has been
registered for at least 2 years and is under the supervison
of a broker. .

4
 A branch manager is not required when there is only one
salesperson.

5
Module 3: Introducing Property Ownership, Rights, and

Limitations
Lesson 1: Introduction to Ownership
Estate interest An estate is in interest in land or more Riparian right:
specifically the degree, quantity, nature, and water
extent of interest that a person has in a
property. Surface right:
right not
Fee simple estate is the highest estate or include mining
absolute right in real property. The holder of right
such a fee simple estate has the most rights
and fewest limitations, and can use, sell, The
lease, enter, or give away the property, or fundamental
refrain from any of these rights. difference btw
fee simple and
A leasehold estate is an interest in land for a leasehold
definite period of time (i.e. a week, a month, a estate is time.
year, 99 years, or any other specific period of
time).

Concurrent ownership Concurrent ownership is defined as

two or more persons having the right of
ownership at the same time.
Concurrent interests normally fall
into two primary categories: joint tenancy
and tenants in common.
Joint tenancy involves ownership of
land by two or more persons. Joint
tenancy requires the presence of four
unities, which are title, time, possession,
and interest(PITT). Joint tenancy also has
the right of survivorship.

Tenants in common involves

concurrent ownership of land by two or
more persons. The only unity in tenants in
common is possession and there is no
right of survivorship.

Ownership alternatives A condominium is a form of ownership where

6
 there is a fee simple ownership of the unit and a
tenant in common ownership of the portion used
jointly with others known as the common
elements.

A common elements condominium (CEC)

corporation consists only of common elements
such as roads, parking lots, a golf course, a ski hill,
or a community centre.

The owner’s property is “tied” to the CEC that is

referred to as a Parcel of Tied Land (“POTL”).

An equity co-operative is a corporation that owns

the land and buildings, with members as
shareholders in the corporation. Ownership is by
way of a share certificate, in combination with an
occupancy agreement relating to a specific unit
and often parking and locker.
A non-profit housing co-operative is without
shares and has the primary objective of providing
housing for its members.

Fractional ownership is shared ownership that

allows an individual to partially own a valuable
asset without putting up the money to purchase
the whole asset outright. Fractional ownership
allows multiple buyers to obtain part of a property
title as tenants in common with usage rights
allocated depending on the size of the fraction
purchased.

Co-ownership applies to any situation in which

two or more persons own property jointly, be it
two individuals owning a home, four family
members owning a recreational property, or 10
investors owning a plot of land. It is a tenant in
common ownership alternative, in which the deed
outlines the proportionate interest in property
held by each owner.

A land lease gives the exclusive right to use the

land for the time the lease is active but does not

7
 give ownership of the land. In a life lease, the
person does not own a property but an “interest”
in that property in exchange for a lump sum
payment up-front. The person also pays monthly
maintenance fees that include a range of
expenses, including snow removal, landscaping,
garbage disposal, repairs, building insurance, and
possibly meals
Timeshare, trailers, and Timeshare is the division of property rights into
house boat fractional interests based on time. Timeshare
ownerships, and interests can be acquired via two methods: Fee
requirements of a ownership interest or right-to use interest. Fee
salesperson if trading ownership-purchase a deal interest. Ownership
in these types of doesn’t end. Its usage right can be sold or
property description inherited. Have 10 days cooling period If the
buyer hasn’t received a copy of the written
agreement during the one-year period, he can
cancel the agreement.

A mobile home is a transportable, prefabricated

structure that is situated in one particular place
and used as permanent living accommodation.

Houseboats are a form of ownership wherein the

property is a boat used or converted into a
dwelling. This ownership type is unique, as there is
no “land” in question. Tenancy in join doesn’t
apply to Houseboats. Houseboat can be typically
grouped under two categories: “residential” or
“recreational”

Mobile home parks and rented mobile homes are

covered by the provisions the Residential
Tenancies Act, 2006.

Lesson 2: Ownership Rights and Limitations

Easements: definition, Even the highest estate or absolute right in
characteristics , property is subject to some restrictions and
creation, and limitations, both private and government,
termination imposed by laws of governing authorities.

• An easement is a right enjoyed by one

8
 landowner over the land of another and is granted
for a special purpose rather than for general use
and occupation of the land. An easement has six
defining characteristics:
o It must be granted for a clear and specific use. o
It must be comprised of both dominant and
servient tenements.
o It must have separate ownership of the lands
involved.
o It must solely benefit the dominant tenement.
o It runs with the land, so it binds subsequent
owners.
o The dominant and servient tenement do not
have to be adjoining.

• A dominant tenement is defined as the estate or

interest in land that derives benefit from an
easement over a servient tenement, as in a right-
of-way. An easement must confer a benefit on the
dominant tenement.

• A servient tenement involves land over which an

easement exists in favour of a dominant
tenement.

• An easement can be created in one of four ways:

express grant, prescription, implication, or statute.
• An easement can be terminated in one of three
ways: merge, release, or ceasing of purpose.

Type of easement There are several types of easements commonly

found in residential properties:
• A right-of-way is a frequently encountered form
of easement that allows a person to travel or pass
through another person’s land.

• Party wall easements are created when

registered owners of adjoining parcels of land
enter into a party wall agreement in regard to the
dividing wall between the attached units.

• A mutual shared driveway occurs when a strip of

land shared by adjoining neighbours is used as a

9
 joint driveway by both parties and creates an
easement on each property.
Restrictive covenant, A restrictive covenant is a type of contractual Zoning
encroachment, adverse arrangement that places restrictions on what the restrictive 不
possession, and profit- owner of the land can do with their property. A 需要登记在
à-prendre restrictive covenant is a legally binding obligation title 上。
written into the deed of a property and is
registered on title. Restrictive covenants run with Adverse
the land. Therefore, a buyer who purchases a possession 又
property with a restrictive covenant on title must 叫 squatter’s
honour these restrictions. right

An encroachment is a situation that arises when a

property owner violates the property rights of
their neighbour by building a structure wholly or
partially on the neighbouring property.

Adverse possession occurs when an individual

who is not the owner takes possession of the
property, hostile to and without the consent of the
owner. It is possible, by adverse possession, for an
occupier of land to extinguish the title of the
owner. The possessor then becomes, in effect, the
owner of the land.

For adverse possession to exist, the possession

must be: • Open • Exclusive • Continuous for a
period • Without the consent of the owner, but •
With the owner’s knowledge. The minimum
period is 10 years.

No title claims by adverse possession can occur

under the land titles, which is a system of land
registration in Ontario.

The term profit-à-prendre means “right of taking”.

It involves the right to enter upon a property
based on a written agreement and take something
from it. It is a non-possessory interest in land that
is similar to an easement, but it specifically grants
the holder only the right to take natural resources
such as crops, oil, minerals, timber, and wild game
from the land of another. This right can, in some

10
 instances, pass with title upon the sale of the
property.
Other government Expropriation involves the acquisition of private
limitations to property property by the government for the public’s best
ownership: interest and use with fair compensation to the
expropriation, the right owner. There is a process in place to permit a
to regulate and levy landowner to object to the expropriation and/or
taxes, and escheat the amount of compensation being offered.

Other government limitations imposed upon

property ownership include the right to regulate
and the right to levy taxes. Right to regulate is the
right of government to regulate property for the
promotion of public safety, health, morals, and
general welfare. It is also referred to as police
power. Right to levy taxes is the right of the
government to levy taxes on property.

Escheat is the reversion of property to the

government, or some kind of government agency,
in the event that a property owner dies leaving no
will and having no legally qualified heir to whom
the property may pass.

11
 Module 4 Introducing Land Description and Land Registration

Lesson 1 Land Description Methods

Ontario’s land The mandatory measurement of land across the A Chain =66
descriptions British Empire was based on the old chains and feet long, 100
links system, called Gunter’s chain or Gunter’s links made a
measurement. chain, and 80
chains equaled
The county boundary often followed a river or lake one mile. Each
but in most cases was a straight line through the concession
bush. The counties were then divided into smaller was 100 chains
parcels referred to as “townships”. Each township across or 1¼
was in turn divided into strips of land known as miles.
“concessions”. Each concession was separated
from the next one by a “road allowance”. Each
concession was further divided into “lots”. A
“parcel of land” could then be described as the
entirety of the lot and concession.

In Ontario, there were three types of township

configurations:

The “single front” and “double front” township

configurations were later introduced. Single front
townships normally contained 200-acre lots, while
double front townships were usually patented in
100-acre half-lots. The “sectional township
system” of land division involved 1,000-acre
sections.
Metes and bounds Metes and bounds is on older system of written The Compass
land description whereby a property is described direction is
using compass directions and distances ultimately always related
enclosing the property being described. to North.

Types of surveys four types of surveys when involved in the listing Surveyors in
and selling of residential and commercial real Ontario are
estate. subject to both
1. Surveyor’s Real Property Report (also called the Surveys
building location survey, including two parts, Act and the
written report and plan of survey), Surveyors Act
2. Reference plans (R-plans ， it typically involve in the
changes to an existing property.), establishment

12
 R-plan are needed in Severance, first and/or re-
application, the title is too vague. establishment
3. plans of survey(used for apply for building of property
permit not registered with the land office), lines,
and boundaries,
4. plans of subdivision(Plans of subdivision are and other
assigned numbers at time of registration at components of
the land registry office.). surveys.

The importance of A “survey,” which is prepared by an Ontario land All changes to

accurate land surveyor, depicts accurate mathematical land require a
description measurements of land and improvements. reference plan
Technically, land surveying is referred to as to be
“cadastral surveying.” deposited in
The Association of Ontario Land Surveyors has the land
determined that a survey contains the four registration
components of: office.
• Research • Measurement •
Monumentationv(only the front two are required ) Plan of survey
• Plan and/or report could not be
registered at
A salesperson will most typically encounter four the land
types of surveys: • A Surveyor’s Real Property registration
Report (include a plan of survey and a written offic
report) • A reference plan (R plan) • A plan of
survey • A plan of subdivision

The Association of Ontario Land Land

Surveyors has been concerned for some time description
about the circulation and use of photocopies includes 3
or partial copies of survey plans that may have parts:
been altered in some way or that may not location
show all of the information that forms part of reference:
the original survey. Encumbrances
A copy of the plan that does not bear an and
impressed seal may not be a valid copy of the municipality/r
original plan. egistry office
An “up-to-date” survey is essentially a Lot 24, Plan
current snapshot of the parcel of land being (PL) 58M-
described at that moment of time. Over time, 1234, S/T LT
changes can happen that won’t be reflected in 123456, City of
an older survey. Bigcity

13
 A complete “legal land description” is a LT=lot; S/T
written identification and formal depiction of subject to
land in order that the property can be PL: plan
precisely located. The legal land description PT: part
ensures that the T/w together
of accurate land The importance with
©2019 Real Estate Council of Ontario PCL： parcel
property being purchased is, in fact, the
same one being offered for sale. Further, this
description is required for related activities,
such as arranging a mortgage. “Primary
documents” containing the legal land
description include the deed and survey. In
the event an owner does not have a deed or
survey, other documents such as the
municipal assessment or tax bill can be used
when verifying a legal land description.
While a selling salesperson would normally
rely on the listing information being complete
and accurate, and write the offer using that
information, ultimately both listing and selling
salespersons are obligated to confirm all the
information before drafting legal documents
in a real estate transaction.
Lesson 2: Land Registration
Land registration Land registration systems provide for the orderly Ultimately, the
registration of ownership of land in Ontario. chain of title
Two land registration systems currently exist in should go back
Ontario under the Registry Act (registry system) to the original
and the Land Titles Act (land titles system). In Crown patent
Ontario, all land is registered under either the (such as the
Registry Act or the Land Titles Act, but never root of title).
under both.
Under land
Properties in Land Titles are identified by title system,
ownership and assigned unique, non-geographic the land
parcel number. registrar
guarantees the
In the registry system, the Land Registrar is an title, while
administrative official only, taking no responsibility registry system
for verifying title. In the land titles system, the doesn’t
Land Registrar maintains and guarantees title. guarantee the
Lesson title.

14
 The Land Titles Act operates on the premise that
the Land Titles Register is the sole information
source for purchasers. Land titles is based on
these three principles:
• Mirror principle • Curtain principle • Insurance
principle
Land registered under the Registry Act may be
brought under land titles by the owner through a
process called “first application.” The large-scale
conversion of registry records into land titles is
now being completed. The Land Titles Conversion
Project involves the conversion of registry records
into land titles coincident with the move to e-
registration systems.
The “Land Titles Assurance Fund,” established
under Part V of the Land Titles Act, provides that
persons deprived of ownership through selected
errors or fraud are entitled to compensation,
provided such compensation cannot be obtained
from other sources.
E-Registration e-registration refers to title documents being 4 steps for E
created, submitted, and maintained in electronic registration :
form. Step 1 create,;
Step 2
The process involves POLARIS (the mapping and messaging;
property detail database of the Ontario Step 3
government) and Teranet (responsible for complete 4.
implementation, operation, and enhancement of Release
POLARIS).

E-Registration Process (4 steps): First a seller’s

lawyer creates a Transfer/Deed of Land and sends
a message to the buyer’s lawyer allowing access to
the document. The buyer’s lawyer then adds the
buyer’s information to the document and
performs other steps in the document preparation
process. The document, when completed by both
lawyers, is ready for electronic signature. Two
types of signatures are required: completeness
and release. The completeness signature validates
the accuracy of statements made, and the release

15
 signature confirms that the document is ready for
registration. With the documents now completed
and signed, the e-registration can occur.

The Land Titles The Land Titles Conversion Project involves the Land Titles
Conversion Project conversion of registry documents to land titles Absolute Plus
coincident with a change to the automated means that the
POLARIS system. property is
Under traditional procedures, a property would free of any
enter land titles through an investigation and encumbrances
subsequent certification by way of first application and the title
under the Land Titles Act (Part IV). The Land Titles cannot be
Conversion Project provides streamlined disputed by
procedures to accelerate the process and the anyone.
access to land registration records by way of
Teraview (operated by Teranet).
The land in the registry system was converted into
the land titles system using either the Land Titles
Absolute (LTA) System or the Land Titles
Conversion Qualified (LTCQ) System.
Land Titles Assurance Financial compensation for persons wrongfully
Fund deprived of land or some interest therein.
The POLARIS “POLARIS” is an acronym for Province of Ontario The guarantee
automated land Land Registration and Information System. This of title
registration system automated land registration system operates normally
based on a title index (description of property associated
ownership) and property mapping (surveys and with land titles
plans) databases. does not
accompany
POLARIS registers property under a parcel basis in this
much the same fashion as a land titles system. parcelization
process.
POLARIS permits the user to find property by
individual parcel, which is referenced by a PIN, by Pin: 包 括
individual name, or by street address within the block number
title index. Further, property mapping allows the and property
geographic pinpointing of described properties. index number
比 如 00114-
“Teraview” is an electronic gateway software, 0051
operated by “Teranet,” which provides clients with
online remote access to land information products
and services, including the POLARIS land
registration system.

16
 Teraview facilitates searches by accessing three
different databases within POLARIS: • Title Index
Database • Property Index Database • Image
Database

Teranet, in partnership with ServiceOntario, has

built a web portal called OnLand to deliver key
statutory services relating to land and property
ownership in Ontario to land registry professionals
and to the public.

The five documents The Land Registration Reform Act sets out five Form 1: The
that standard documents that can be e registered. affidavit is
can be e-registered These five forms are: required by
• The Transfer/Deed of Land (Form 1) Land Transfer
• The Charge/Mortgage of Land (Form 2) Tax Act ，
• The Discharge of Charge/Mortgage (Form 3) collect land
• The Document General (Form 4) transfer tax
• The Schedule (Form 5 additional information for when
Form 1 to 4)) providing to
“E-registration” refers to title documents being registration.
created, submitted, and maintained in electronic
form. Form 3 is
Individuals who are provided access to the executed by
Teraview and POLARIS systems may register the
documents electronically from their offices, use a mortgagee.
kiosk in the applicable land registry office, or
request assisted service by a staff member in the
land registry office.

Searching POLARIS POLARIS permits the user to access property by

address, owner’s name, or PIN.
Pin number consists of a block number and a
property index number.

17
 Module 5 Introducing the Real Estate and Business Brokers Act

Lesson 1: Regulatory Governance for the Profession

REBBA 1. Real estate profession to enhance customer
protection.
2. Including one Act and 5 associated Regulation, 3
of which have a direct impact on registrants. .
3. The three includes: General, Other (Regulations
on educational requirements, insurance and
record) and Coe of Ethics
Code of Ethics 1. Minimum standards of a registrant when If call
conducting business. customer
2. In the early Real Estate Act, no Cod of Ethics from DNCL,
and only have the CREA Code of Ethics. it may lead
3. to
complaints
from
customers,
sanctions,
and/or
fines for
the
brokerage
from the
CRTC

Impact of REBBA on a 1. Prohibition; 2, registration, 3. complains,

salesman inspection and 4Conduct and offences
Consequences of non- 1. Discipline Committee imposes penalty
compliance 2. Penalty include
Education course; fine; pay costs
e. Discipline committee will publish a copy of
decision for at least 60 months, accessible to
the public.

Lesson 2: Prohibitions Re: Practice

Trade 1. Trading: any activity which would advance a real
estate transaction
2. Prohibition on trading unless registered
3. Unregistered people can be employed by
brokerage or salesperson but cannot perform any
trade. For example, draft an offer under the

18
 direction of a broker/salesperson`

Registration exemption 1. An auctioneer

2. Employee of a builder
3. Lawyer
4. Financial institution disposing a property under a
mortgage default
5. A person selling his own house
6. Lease under Residential tenancy Act (seasonal
house lease and commercial lease 不属于可以排
除的情况)
7.
Notification Until the registration certificate is available,
cannot trade.

compensation Must be registered to make a compensation.

Lesson 3: Registrant
Broker of record 1. Ensure all employees comply with REBBA
2. Broker of record is an employee of the brokerage,
except for a sole proprietorship.

3. Brokage must provide the registrar with the name

of broker of record. If change the person, notify
in 5 days.
Registration Full disclosure, financial situation, past conduct. Any Financial
Consideration disclsore may not necessarily result in the denial of situation
the registration. big trick is
unpaid
debt 跟
substantial
outstandin
g debt 并不
一样。
Registration refusal Three result: Refuse ; suspend or revoke, refuse to
renew.
May approve the registration by attaching conditions.

Lesson 4: Complaints, Inspections, and Discipline

Complaints-request for 1. Not all complaints result in action of Reco. RECO
information 2. If a complaint about a salesperson, the person is cannot
entitled to be notified of the complaint, seek legal compensat
advice and be represented, and fully respond. e 投诉的

19
 人； 或者
撤销一个
合同。
Progressive discipline 1st---warning;
2nd warning +course
3rd discipline hearing. Potential fine to the broker
of record and the salesperson

address a complaint Options include:

1. Require an undertaking and acknowledgement;
2. Apply voluntary conditions
3. Request a meeting
4. Meditate or resolve the dispute
5. Written warning
6. Educational course
Consequences of a 1. Immediate suspension of a registration
more severe complaint 2. Registra’s proposal (notice of proposal) to revoke,
suspend, refuse renew or approve a registration.
to appeal to License Appeal Tribunal in 15 days
(LAT)upon receiving the notice.
3. Director’s action to conduct an investigation (can
also do it towards a non-registrants who are
believed to b trading while unregistered)

4. Prosecution under the Provincial Offense Act:

Offences relating to REBBA other than the code
of ethics can result in prosecution under the
Provincial Offense Act.

5. Law enforcement agency (criminal activity such

as fraud)
Brokerage Inspections Brokerage must provide all documents to the
inspector.
Code of ethical 1. Breach of a code, RECO may refer this matter to It’s
violation Discipline Committee. statutory in
2. If found guilty, three options: take educational nature
course; pay fine (5000 for individual, 100,000 for
brokerage); impose additional fixed costs.
3. Registrant can appeal to Appeal committee.
4.
Lesson 5: Conduct and Offences
Trust Account 1. Brokerage maintains a trust account to reserve
client’s money. Monthly reconsiliations

20
 2. Fund should be deposited as soon as practically
possible, 5 business days is the minimum to place
money into trust account, which is called Real
estate trust account.
3. All trust cheques must be signed by the broker of
the record.
4. Disbursement can only happen when a mutual
release is signed or a court order.
5. Brokerage should Disclose interest rate of the trust
account.
6. A receipt must be provided to the buyer if the
brokerage receive the money
Employment with a 1. Salesperson can only trade on behalf of brokerage
brokerage and receive commission from it.
2. Cannot work for two brokerage
3.
Commission and 1. 3 types: fixed fee, percentage, combined
remuneration 2. If no agreed amount, the prevailing rate in the
community will apply;
3. For percentage, the higher the price, the lower the
percentage.
4. Commission cannot be charged on the difference
btw listing price and selling price.
为了自己买卖 1. Could be direct or indirect interest. 无 论
2. A separate Written disclosure must be made to all brokerage
parties and receive signed acknowledgements 卖 还 是
before offer is made, a copy retained by brokerage private
sale
Falsify information and
false information
False advertising Misleading, false, deceptive（欺骗性）, inaccurate
Advising-registra’s 1. Immediate stop
option 2. Retract the statement or publish correction
3. Both of 1 and 2
4. Pre-approval of a registrar’s advertising for one
year.

Penalties-falsifying 1. 50,000fine/up to 2 year in prison

information 2. 250,000 for a corporation/
3. Suspend revoke registration
4. Pay compensation/restitution to the affected
parties.
Lesson 6: The Code of Ethics – Providing Services

21
 Code of Ethics Minimum standard for registrant
Fairness, integrity To everyone
honesty
Best interest For client not customer
Conscious and Duty of care to client and customer
competent service
Disclose Material facts Disclose material facts to clients and customers. But for
customers, only to the facts known or ought to be known
and the customer is required to make their own inquiries.
Providing opinion For both client and customer.
Provide opinion on value, the salesman must have relevant
education and training on such type of property
Obtaining Service from Both to client and customer.
others Encourage not discourage client/customers to seek
professional experience.

Lesson 7: The Code of Ethics: Upholding Compliance and Professionalism

Minimum advertising 1. Name of registrant , individual, brokerage must be
requirement consistent with the one they registered;
2. prominently and clearly
3. Description must be accurate, correct
4. 可 以 使 用 的 词 ： Salesperson/ sales representative;
real estate salespersons/real estate representatives;
5. 不可以使用 agent, counsel, associate, etc. 或者 rep.

Advertising Prohibition 1. Sales agent/sales consultant/sales associate 不可以用

2. Registrant is permitted to associate with a real estate
association/group. But cannot be substitute as
description of the registrant.
核心就是不要写 opinion 要写 facts
Inaccurate description 1. Comparative ranking: 要写具体的时间以及依据
2. Claims about business volume and trading capacity
3. Promise of trading or rebates
4. 不能写 commissions or rates are fixed by RECO
5. Honors or awards received.具体时间
不能用买来的奖。
Error
Misrepresentation and
Fraud
Unprofessional
conduct, abuse and
Harassment

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23
 Module 6 Introducing the key legislation and regulations

Lesson 1: Fundamentals of Real Estate Contracts

Statute of Frauds 1. Writing to be enforceable. Exception: verbal with parties
action to complete
2. Particular form is not required.
3.
Vendor and purchase Required clauses:
act 1. Seller only transfer Seller’s possession;
2. 30 days after signing of the contract for buyer to raise
objection on title
3. Seller： 30 days to remove objection. Otherwise, return
deposit and cancel contract
4. Taxes, local improvements, insurance premium, rent, and
interest shall be adjusted as the date of closing.
5. The conveyance shall be prepared by the seller ； the
buyer shall bear the expense of registration of the
transfer/deed and the seller shall bear the expense of the
discharge of the mortgage.
6. The buyer is entitled to rent and profit upon the date of
closing.
This agreement is an evidence of a contract.
Parol Evidence rule Oral evidence cannot contradict written agreement unless this
is a fraud or mistake.

Privacy of contract Only parties to the contract can enforce it or be bound by it

REBBA requirement Must be reduced to writing and earliest opportunity. Copies
of representation agreements be immediately given to the
seller and buyer.

Lesson 2 Requirement to create a binding contract

Essential element of a 6 个因素 (CDCLOG) Acceptance must
contract 1. Offer and acceptance; be unconditional
2. Capacity of the parties ( Intoxication
3. Consideration (court doesn’t assess the One partner can
adequacy or amount of this value, but only bind the other
its existence, unless it’s so unfair) partner.
4. Definite and clear
5. Lawful object Exchange of value
6. Genuine intention. is not necessary
when determining

24
 people can void a contract even if the other enforceable.
party was not aware they were intoxicated. 合同成立后，增
加 的
consideration 不
能 enforceable.
Lack of genuine 3种
intention: Mistakes 1. Common mistake : mistaken of underlying
facts
2. Mutual mistake: contrary
misunderstanding
3. Unilateral mistake: one party mistaken.
Lack of genuine 3种 Seller 通常犯的是
intention: Innocent/fraudulent/negligent innocent
Misrepresentation Normally, one damaged party cannot recover misrepresentation
damages if the misrepresentation was , salesperson 是
innocent. negligent

Lack of genuine
intention: Duress or
undue influence and
failure to disclose
Void or voidable Void: nobody can enforce it and nobody has Non-est factum
contract any obligation under it. It doesn’t legally exist legal rule: which
at all. may render the
Voidable: choose to enforce it contract voidable
Illegal: not enforceable by the court. if the party didn’t
know what he is
signing.
Government limitation 1. Expropriation （eminent domain）
on property ownership 2. Right to regulate
3. Right to levy tax
4. Escheat: 无人继承的财产。

Lesson 3: Contract Breach and Termination

Breach of contract Minor or compensable breach cannot
trigger the discharge of the contract
Remedy of breach of 5 remedies:
contract 1. Rescission: cancellation or revocation
2. Damages:
3. Quantum meruit: a reasonable sum
for services provided
4. Specific Performance
5. injunction

25
 Termination of contract 1. performance;
2. mutual agreement;
3. impossibility:
4. operation of law:
death/bankruptcy/unauthorized
unilateral alternation
5. breach

Lesson 4 Electronic commerce act

Documents using Sale agreement /lease agreement/representation
electronic signature agreement, agreements relating to trading can use
electronic agreement.

If one party refuse electronic format, then written format

shall be adopted.

The parties must not only accept electronic version , but

also acknowledge their receipt.

Lesson 5 Complying with privacy legislation (PIPEDA)

3 types of information Personal information: Place of residence Contact of details for
Sensitive PI: health information an employee of a
Personal facts: non-identifiable copany cannot be
PIPEDA only applies to the first 2 types. deemed as personal
information under
PIPEDA
Policy/privacy officer
Salesperson’s State the purpose, get the consent,
obligation maintain the privacy ---locked
cabin/password protection;
10 principles Accountability; identifying purpose,
consent, limiting collection, limiting use,
accuracy, safeguard, openness, individual
access; challenging compliance.

Lesson 6: Family Law Act

Matrimonial home 1. A house occupied by a couple, unless Non-owner spouse
otherwise specified only related to
2. Can be more than on MH at one time. “possession of the
3. Must obtain both spouses’ signature property; and

26
 in sales disposing of or
4. Equal rights to possession of MH even encumbering he
for non-owner spouse(including matrimonial home
refinancing) without consent.
5. A common law partners are considred
as a spouse, but their family home is Only one spouse
not considered a matrimonial home. complete a
所 以 房 子 的 owner 可 以 不 经 过 designation, 没用
partner 允许出售或者 finance
6. Common law partners usually require
3 years of cohabitation unless 共同收
养孩子。
7. Matrimonial home is different from
matrimonial property.

Lesson 7: Impact of the Planning Act and Official Plan on Land Development
Planning Act Purpose： promote economic sustainable Administered by
development in a healthy environment Ministry of Municipal
Affair and Housing
Types of municipalities 1. Single tier (city of Toronto, Ottawa)
2. Two tier ： Upper tier/lower tier
(bylaws)

Provincial policy 1. Issued by Ministry of Municipal Affair

statement and Housing
2. Reviewed every 5 years

Official plan 1. Including inputs from citizens.

2. Normally provincial approval;
3. Reviewed within 10 years. 5 years if
not being replaced at all.
4. Approved by the Provincial Ministry of
Municipal Affairs and Housing
5. Contain overall framework of how a
community’s land will be used.

Lesson 8: Key Considerations Related to Zoning

Zoning bylaw 1. Enacted by municipalities
2. Including structural standards and
other (parking, signage, noise)
Zoning 1. 6 general use ： Residential ，
designation&categories commercial ， industrial ，
institutional, Open space, Agricultural

27
 2. Subclasses with symbols: Residential
( R, R1-6, higher number with greater
density ) Agricultural (AG); RS,RM, RR
Residential bylaws parking, signage, noise 对 于 sign, 除 了
community 的
bylaw ， 还 有 local
listing service
Committee of A committee of adjustment appointed by
Adjustment lower tier of municipality/ a land division
committee appointed by upper level of
municiple. Function:
1. Granting minor variances
2. 批 Sever land
3. 批 continuance of non-compliance

Minor variation and Minor Variation ： 从 递 交 申 请 到 Minor variation: 到

rezoning Committed of Adjustments hearing and final decision 出 来
decision 距离 30 天 前，第三方可以去
Rezoning： 从完整递交到 decision 九个 appeal ； rezoning: 结
月 果出来后第三方上诉,
Land severance: 在 结
果出来后发证之前第
三方可以上诉；
Land division: draft
plan decision 出 来 后
上诉
Nonconforming use Legal non-conforming: when set up, they This is legal structure
and non conforming complied with then zoning bylaws and use.
structure
Lesson 9: Land Severances and Plans of Subdivision
Consent granting A committee of Adjustment appointed by Anybody can
authority lower tier of municipality/ a land division appeal to local
committee. Sometimes, other committee may planning Appeal
be assigned to such power. tribunal for land
severance and
subdivision.

Land severance and 把地分成两块或者三块 A draft plan must

steps for approval include a
6 steps: description of
1. Consult existing or
2. Submit complete application （ 双 方 planned municipal
对是否完备有争议， 申请人可以去 services.

28
 Local Planning Appeal Tribunal）
3. Review the application 从提交文件完整
4. Decision 到最终决定 90 天
5, notice
6. Issue certificate
The decision can be conditional normally under
one year.
Subdivision and the When you divide a piece of land into two 从提交文件完整
steps for approval or more parcels and offer one or more for 到 最 终 决 定 180
sale, you are subdividing property, and 天
the provisions of the Planning Act come
into play.

If your proposal involves creating only a

lot or two, you may seek approval for a
"land severance". For more details, see
section 5, Land severances.

Registration is two-stage process: draft plan

approval and final plan approval
7 steps:
1. Consult 2. Prepare a draft plan (first official
step) 3. Complete application 4. Approval
Authority （ provide notices and hold
public meeting）5. Decision on draft plan
approval 6, notice and appeal 7.final plan
approval and registrant 8. Registration (if
no registration, the authority may
withdraw the approval)

Local planning Appeal Members are apoointed by the Lieutenant

tribunal Governor in Council
Land planning appeal
support center

Lesson 10: Authority of a Municipality

Federal Airport/oceans/fisheries/land adjacent
government to great lake/federal canal systems/
governance
scope
Municipalities Bylaws, Municipal Act 2001 (Ontario) 1. The provincial Planning Act
power City of Toronto 2006(Toronto) defines the role of municipal
Committee of Adjustment

29
 Municipal Act is the primary provincial (不是 municial)
legislation that governs how Type of municiples bylaw:
municipalities are created and their Sign/fence/floodplain
respective authorities. management/noice/buidlgin
energy/fill/sewage
City Toronto is governed by City of
Toronto Act.
Spheres of 10 aspects
influence

Lesson 11. Compliance with FINTRAC

Role of Ensure compliance with Proceeds of Crime and
FINTRACT Terrorist Financing Act
Requirement 1. An compliance officer A contracted agent must
of FINTRACT 2. Report large cash transaction more than be used when outside of
10K (in a single transaction or in several Canada
transaction from the same sources within
24 hours) When a suspicious
3. Suspicious transaction transaction occurs, it’s the
4. A record of receipt of funds salesperson not the
5. Report property of terrorist organization brokers to submit the
6. Keep documents for 5 years report through the
7. At least 2 years effectiveness review Compliance Officers.

3 types of report, STR,

LCTR, TPR
penalties Criminal and administrative
STR 1. Submit STR through compliance officer
within 30 days of determining
2. LCTR:
Ascertain 1. Single process method/credit file
client identity method/dual process method(name
+address/Name+DOB/Name+financial
account)

Additional 1. Name a compliance officer ( 可 以 是

obligation administrative staff)
2. Written compliance policies and
procedures
3. Provide training
4. Complete a written risk assessment
5. 2year review
Penalties 1. For non-compliance: 2million/five years

30
 2. Administrative monetary penalties (AMPs)
Lesson 12: Key Legislative Requirements Impacting Condominiums
Condo 两 个 条 件 成 立 condo: registered with New Conco’s declaration and
corporation Land Registry Office of the two description cannot be registered
documents(1)a declaration （ condo electronically.
constitution ）
(2)description(diagrammatic A corporation without share
presentation of the condo) capital is automatically formed
Land registrar give s the corporation upon incorporation in which
name and a sequential number. members are the unit owners

Residential Conversion of warehouse and industrial Director must complete training

Condo structure ---covered by Tarion warranty within 6 months of appointment.
Conversion Condo conversion of an existing
Projects residential building—not covered.
,Condo Two authorities: Condo Authority of
authority& Ontario; Condo management Authority
training of Ontario.

Condo are operated by a board of

directors. Directors are completed
training by Condo Authority of Ontario;
Condo Required by Condo Act 1998;
reserved fund Separate with Condo operation fund;
Used to pay major repairs and
replacement of common elements(not
unit itself)
Key provisions Condo bylaws are not effective unless The common expense payments
of Condo Act the owners of the majority of unites are due and payable regardless
1998 vote in favore. of whether the unit owner is
A status certificate includes description restricted in some way from
of the units as well as overall legal and enjoying such facilities.
financial situation of the condo
corporation. Everyone can have it by
paying no more than 100 plus tax. It
shall be issued within 10 business days.
Condo Condo management authority of
manager Ontario 负责
training and Managers must be trained and licensed.
code of ethics
Condo Condo management authority of
complaints Ontario 负责争议
solution

31
 Lesson 13: Differentiating Between Residential and Commercial Tenancies
Type of Principal use determines Laws provide a wider range
tendency Commercial Commercial Tenancy Act of statutory right to
Residential Residential Tenancy Act residential tenants than a
commercial one.
Rent deposit Commercial ： OK Residential ： no Landlord 根据 tenant 的要求
greater than one rental period 应该提供收据

Security Commerical: OK
deposit Residential: 不 能 超 过 租 金 。 任 何
security deposit 都是自动被认为是房
租押金
Rent increase Commercial: no restriction
Residential: follow guidance exceptions
under Residential Tenancies Act
Dispute Commercial: superior court
resolution Residential: Landlord and tenant board
End of Lease Commercial terminate by serving one
month notice for
Residential: automatically converted to
a month to month tenancy.
Lesson 14: Summary Practice Activities

32
 Module 7 Introducing Other Relevant Legislation & Regulations

Lesson 1: Legislation Impacting the Marketing Activities of a Salesperson

Impact of national Name on federal DNCL, don’t call
DNCL on brokerage Also maintain internal DNCL,

Impact of national If call customer from DNCL, it may lead to Telephone contact
DNCL on salesperson complaints from customers, sanctions, with business
and/or fines for the brokerage from the consumers doesn’t fall
CRTC. (1500 个人 15000 公司) under the DNCL
legislation.
Exemption list:
1. The maximum time period is 18 Political parties and
months if the salesperson helped the registerd charities are
person trade a house. exempted
2. If consumer makes an inquiry within 6
months, DNCL exception. A brokerage must
3. Written agreement with a brokerage update its DNCL once
4. Open house agrees so every 31 days
Purpose of CASL Relative secure online environment for CASL doesn’t apply
customers social medias
Requirement for Before sending CEM, obtain consent,
sending CEM identify themselves, provide a means to
withdraw
CEM consent 1. Express consent: oral or written Opt out is not
2. Implied consent acceptable.
implied consent relied on a prior
relationship with the recipient

Implied consent expires and the time

frame is 6 month for an inquiry, and 2
years for an existing business relationship
or non-business relationship

`Impace of Competition 1. Misleading advertisement;

Act 2. Conspiracy
3. Price maintainance
4. Bid-rigging
Lesson 2: Understanding the Potential Impact of Tax Legislation on the Purchase,
Sale, or Lease of a Property
Difference between Business income doesn’t include salary
capital gain and Business income is totally taxable; CG is

33
 business income 50%
考 虑 的 因 素 : intention, relationship of
business; frequency;nature/ object of Corp
Principle residence 1. Include houseboat, mobile home, Principle residence 不
trailer 能超过 1.24Acre,除非
2. 符 合 principle residence 的 要 证明有必要。
求：
卖的那年被认为是 principle residence.
只能又一个 PR
Impact on non-resident Buyer has the obligation to pay. If the 还有 一种 方式 ： 卖
seller cannot provide a certificate stating 家 签 署 statutory
that the tax is paid, the buyer’s lawyer will declaration， 说明其
hold back a portion of sale price. 不是非居民。

Lesson 3: Impact of Environmental Legislation on Property Ownership, Use, and

Development
Purpose of
Environment
Protection Act (EPA)
Role of Ministry of Pollution ， Waste management, litter
Environment, management.
conservation and parks If a buyer need to build a private water
well, it shall contact the Ministry of
environment, conservation and Partks.
EPA impact on Environment impact study/environmental
Salesman site assessment
Environment Site Phase 1: identify potential contamination Phase 1 没 有
Assessment (判断是不 Phase 2, if phase 1 thinks a potential laboratory test,
是有污染) contamination exists, phase 2 kicks in. sample gathering.
collecting samples Phase2 还 没 有 给 出
Phase 3: remedial work and issue report. If final definitive
remedial is not feasible, a SSRA report will conclusion
be issued.
Lesson 4: Additional Legislation Impacting the Use and Potential Development of a
Property
Province policy Government’s policy on land use
Statement 2014 planning.
Green belt plan Green belt plan and Oak Ridges The Green belt plan, the
Moraine Conservation Plan; Niagara Growth Plan, Oak Ridges
Escarpment Plan work togeterh to Moraine Conservation
determine which area cannot be Plan; Niagara
urbanization. Escarpment Plan

34
 Endangered Species Expatriated/endangered/Threatened are
automatically protected (including their
habitat). But special concern species are
not.

Lesson 5: Legislation Promoting Energy Conservation

主管机构 Official mark of Government of Canada NRCan
use to label and rate consumer items:
house, vehicle, other products.
Energuide for EnerGuide labor in new electronic
appliance appliance. This label doesn’t means that
the appliance is energy-efficient but
undergone federal standard testing.

Energuide for house Old house is between R50-65

Green BUlding LEED/R-2000 (超过 80)

Energy star House and appliance 如果房子达不到 80，

就 没 有 energystar 标
识
Lesson 6: Legislation Impacting New Home Purchases
Ontario New Home Coverage new house and condo For seepage is 2 years
Warranties Plan Act Tarion is the provincial warranty
authority. Damages caused by
300K for new house and condo, 50mi municipal services are
for a condo project. excluded from Tarion
warranty.
Warranty coverage One-two-seven years
Also include protection of buyer’s deposit,
delay closing, substitution of finishes.
Starting point Each warranty period for a new home or a
condo starts on the date of possession,
except for condo’s common element,
which starts upon the registration of the
condo declaration and description.
Lesson 7: Key Considerations Under the Ontario Fire Code and Ontario Building
Code
Purpose Of Ontario Minimum standard of Building design,
Building Code 1. Building safety, fire protection,
structural integrity
2.
Building Permit 超过十平米都需要，

35
 Install smoke and 1. Smoke alarm in every story. Smoke alarm msut be
carbon monoxide 2. Installed outside of sleeping area on each florr and
alarms 3. Applied to single-family, semi- adjacent to sleeping
detached; town house area(s). Carbon
4. Fire Code only applied to existing Monoxidealarmsmust
house. Ontario Buidling Code focuses be adjacent to
on new houses, new additionas and sleeping area(s)
renovations/repairs for existing
structures.
5. Single family house with a fuel-
burning appliance, fireplace, or
attached garage shall install a carbon
monoxide alarms adjacent to each
sleeping area.
6. Condo, if the unit contains a fuel-
burning appliance, fireplace or a
common wall with a storage garage or
a service room containing a fuel-
burning appliance
Lesson 8: Considerations Under the Ontario Electrical Safety Code
Electricity safety
authority
Permit and Certificate 1.Hire a licensed electric 2. Apply for a Contractor applies for
of inspection permit. 3 submit a request for inspection. a permit. 最 后 的
4. Obtain a certificate of inspection certificate 也是发给电
工

Salesman’s obligation If working with a seller, the salesman

should ask if they are aware of any defects
and if they made any improvement on the
house.
1.
Lesson 9: Compliance with Fule Storage Tank Regulations
TSSA Any above ground tank
spill If an oil spill occurs, the owner must
contact a TSSA-registered fuel oil
contractor. Also need to call Spill action
center.
2. All underground fuel storage tanks
must be registered with the Technical
Standards and Safety Authority.

36