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100+ Free ON Residential Transactions Exam Practice Questions

Pass your Ontario Residential Real Estate Transactions Exam (Humber Course 2) exam on the first try — instant access, no signup required.

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Key Facts: ON Residential Transactions Exam Exam

50 questions

The Course 2 Residential Real Estate Transactions examination is 50 multiple-choice questions

Humber Polytechnic Real Estate Education

75%

Passing score required on the Course 2 examination

Humber Polytechnic Real Estate Education

2 hours

Time allowed to complete the 50-question Course 2 examination

Humber Polytechnic Real Estate Education

150 hours

Course 2 is a 150-hour course in the Real Estate Salesperson Program

Humber Polytechnic Real Estate Education

Course 2

Residential Real Estate Transactions follows Course 1 (Real Estate Essentials)

Humber Polytechnic Real Estate Education

TRESA, 2002

Ontario residential transactions are governed by the Trust in Real Estate Services Act

Real Estate Council of Ontario (RECO)

RECO

The Real Estate Council of Ontario registers and regulates Ontario salespersons

Real Estate Council of Ontario (RECO)

100

Free original practice questions in this bank

OpenExamPrep

The Ontario Residential Real Estate Transactions examination is Course 2 of Humber Polytechnic's Real Estate Salesperson Program, the pre-registration education required to register as a salesperson with RECO under TRESA. It has 50 multiple-choice questions, a 2-hour limit and a 75% passing mark. Content spans seller and buyer representation agreements, the Agreement of Purchase and Sale, conditions and clauses, deposits and trust accounts, residential financing, condominiums, rural property and closing. Course 2 is considered the hardest course in the program because it applies the law to real transactions. This 100-question bank gives original, TRESA-aligned practice across all Course 2 topics.

Sample ON Residential Transactions Exam Practice Questions

Try these sample questions to test your ON Residential Transactions Exam exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under TRESA, when a brokerage agrees to represent a seller, the document that creates this client relationship is the:
A.Buyer Representation Agreement
B.Seller Representation Agreement (listing agreement)
C.Customer Service Agreement
D.Confirmation of Co-operation
Explanation: A Seller Representation Agreement, commonly called a listing agreement, establishes the brokerage as the seller's representative (client relationship) and sets out terms such as price, commission and duration. It is the foundation document for marketing a residential property.
2Under TRESA, before providing services a salesperson must give a consumer the standardized RECO document that explains representation options and the difference between a client and a customer. This document is the:
A.Status certificate
B.Information Guide
C.Statement of Adjustments
D.Working with the REALTOR brochure
Explanation: TRESA requires that consumers receive and acknowledge the RECO Information Guide before a brokerage provides services or enters into an agreement. It explains representation, the client versus customer distinction, and consumer rights.
3A consumer signs a Customer Service Agreement rather than a representation agreement. The brokerage's primary obligation to that customer is to:
A.Promote and protect the customer's best interests above all others
B.Provide conscientious and competent service and exercise reasonable care, but not act as a fiduciary
C.Owe no duties at all to the customer
D.Disclose all of its other clients' confidential information
Explanation: A customer receives honest, competent service and reasonable care, but not the full fiduciary duties (such as loyalty and advancing best interests) owed to a client. The customer relationship is service-based, not representation-based.
4A Seller Representation Agreement contains a holdover clause of 90 days. What does this clause generally provide?
A.The listing automatically renews for 90 more days
B.Commission may be payable if, within 90 days after expiry, the property sells to a buyer introduced during the listing period
C.The seller must keep the home off the market for 90 days after closing
D.The deposit is held for 90 days before release
Explanation: A holdover clause protects the brokerage's commission if the seller sells, after the listing ends, to a buyer who was introduced to the property during the listing term. The 90 days is the holdover window following expiry.
5Under TRESA, when one brokerage has been designated to represent both the seller and the buyer in the same transaction through different designated representatives, this is known as:
A.Single representation
B.Designated representation with multiple representation at the brokerage level
C.Sub-agency
D.Customer service
Explanation: Under designated representation, individual salespeople are designated to represent each client. If the same brokerage's designated representatives act for both the seller and buyer in one deal, the brokerage is in a multiple representation situation requiring disclosure and consent.
6A buyer wants the brokerage to represent them in purchasing a home. The agreement that creates this client relationship is the:
A.Buyer Representation Agreement (BRA)
B.Seller Representation Agreement
C.Agreement of Purchase and Sale
D.Status certificate
Explanation: A Buyer Representation Agreement establishes a client relationship between a buyer and a brokerage, setting out the property type, term, geographic area and commission arrangements. It defines the brokerage's duty to represent the buyer.
7In a Buyer Representation Agreement, the section that protects the brokerage's commission if the buyer purchases a property shown during the term but completes after expiry is most similar to a:
A.Irrevocable clause
B.Holdover provision
C.Schedule A
D.Confirmation of co-operation
Explanation: Like a listing agreement, a Buyer Representation Agreement typically includes a holdover provision so the brokerage can be compensated if the buyer purchases, after expiry, a property introduced during the term.
8Commission in a residential listing in Ontario is:
A.Fixed by RECO at a standard percentage
B.Negotiable between the seller and the brokerage
C.Set by the local real estate board
D.Always a flat fee regardless of price
Explanation: Real estate commission in Ontario is negotiable between the seller and the brokerage; there is no government- or board-mandated rate. The agreed amount or percentage is recorded in the listing agreement.
9A salesperson representing the seller is approached by an unrepresented buyer who wants help writing an offer. Under TRESA, the salesperson should first:
A.Begin representing the buyer as a client without disclosure
B.Disclose that they represent the seller and explain the buyer's options, including the Information Guide
C.Refuse to speak to the buyer at all
D.Promise the buyer confidentiality of their maximum price from the seller
Explanation: The salesperson must disclose their existing representation of the seller and provide the RECO Information Guide so the unrepresented buyer understands their options. They cannot advance the buyer's interests against their own client without proper arrangements.
10The standard OREA contract used to make an offer to buy a resale residential freehold home in Ontario is the:
A.Agreement of Purchase and Sale
B.Seller Representation Agreement
C.Assignment Agreement
D.Tenancy Agreement
Explanation: The Agreement of Purchase and Sale (APS) is the contract by which a buyer offers to purchase and, once accepted, both parties are bound to complete the transaction on the stated terms. It sets price, deposit, conditions and completion date.

About the ON Residential Transactions Exam Exam

The Residential Real Estate Transactions examination is the Course 2 assessment in Humber Polytechnic's Real Estate Salesperson Program, the pre-registration education path required to become a registered real estate salesperson in Ontario under the Trust in Real Estate Services Act (TRESA), 2002, administered by RECO. Course 2 shifts from the theory of Course 1 (Real Estate Essentials) to applied residential practice: representing buyers and sellers, completing the Agreement of Purchase and Sale, drafting conditions and clauses, handling deposits and trust money, residential financing, condominiums and the status certificate, rural and residential property, and the closing process. The examination has 50 multiple-choice questions, a 2-hour time limit and a 75% passing standard. It is widely regarded as the most demanding course in the program.

Assessment

50 multiple-choice questions covering residential representation and listing agreements, the Agreement of Purchase and Sale, conditions and clauses, deposits and trust, financing, condominiums, rural and residential property, closing and TRESA/RECO compliance.

Time Limit

2 hours (120 minutes).

Passing Score

75% required to pass the Course 2 examination.

Exam Fee

Course 2 examination fees are bundled into the Humber Polytechnic Real Estate Salesperson Program pre-registration fees; check Humber Real Estate Education for current pricing. (Humber Polytechnic Real Estate Education, delivering the Real Estate Salesperson Program that leads to registration with the Real Estate Council of Ontario (RECO).)

ON Residential Transactions Exam Exam Content Outline

20%

Representation and Listing Agreements

Seller representation (listing) agreements and buyer representation agreements, customer service agreements, the TRESA Information Guide and disclosure of representation status, designated representation, multiple representation, commission and holdover, and ending agency relationships.

25%

Agreement of Purchase and Sale

Completing the OREA Agreement of Purchase and Sale, conditions precedent versus true conditions, financing, inspection and status-certificate clauses, irrevocable periods, amendments, waivers, notices of fulfilment, and managing multiple offers fairly.

20%

Deposits, Trust and Financing

Deposit handling and real estate trust accounts, the timing 'upon acceptance' and 'as otherwise described', mortgage qualification, the federal mortgage stress test, amortization and payment frequency, default insurance, and Ontario land transfer tax.

20%

Specialized Residential Property

Condominium ownership, the status certificate and reserve fund, common elements and condominium fees, freehold versus condominium, and rural or residential acreage issues including wells, septic systems, easements and zoning.

15%

Closing and Compliance

The completion (closing) process, statement of adjustments, title, possession and keys, and RECO/TRESA obligations: the Code of Ethics, disclosure, conflicts of interest, advertising rules and record retention.

How to Pass the ON Residential Transactions Exam Exam

What You Need to Know

  • Passing score: 75% required to pass the Course 2 examination.
  • Assessment: 50 multiple-choice questions covering residential representation and listing agreements, the Agreement of Purchase and Sale, conditions and clauses, deposits and trust, financing, condominiums, rural and residential property, closing and TRESA/RECO compliance.
  • Time limit: 2 hours (120 minutes).
  • Exam fee: Course 2 examination fees are bundled into the Humber Polytechnic Real Estate Salesperson Program pre-registration fees; check Humber Real Estate Education for current pricing.

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

ON Residential Transactions Exam Study Tips from Top Performers

1Learn the Agreement of Purchase and Sale clause by clause: know which conditions are for the buyer's benefit, how irrevocable dates work, and the difference between waiving a condition and giving a notice of fulfilment.
2Master the TRESA representation framework, including designated representation, the Information Guide, and the distinction between client (representation) and customer (service) relationships.
3Practise deposit and trust scenarios: when the deposit is delivered 'upon acceptance', how trust accounts work, and what happens to a deposit if a condition is not met.
4Be precise on residential financing: the federal stress test, amortization, payment frequency, default insurance thresholds and Ontario land transfer tax, including the first-time buyer refund.
5For condominiums, memorize what the status certificate discloses (reserve fund, fees, special assessments, litigation) and the buyer's right to review it; for rural property, know wells, septic and private services.
6Drill closing and conduct rules: the statement of adjustments, completion-day mechanics, and the RECO Code of Ethics duties on disclosure, conflicts and record-keeping.

Frequently Asked Questions

How many questions are on the Course 2 Residential Real Estate Transactions exam?

The Course 2 examination has 50 multiple-choice questions. Candidates have 2 hours to complete it and must score at least 75% to pass.

What is the passing score for Course 2?

You must score 75% or higher on the 50-question Course 2 examination. The same 75% standard applies across the Real Estate Salesperson Program courses.

What does Course 2 cover?

Course 2 covers residential transactions: seller and buyer representation agreements, the Agreement of Purchase and Sale, conditions and clauses, deposits and trust, financing, condominiums, rural property and closing under TRESA.

Who administers the exam and the salesperson program?

Humber Polytechnic Real Estate Education delivers the Real Estate Salesperson Program. Completing it leads to registration with the Real Estate Council of Ontario (RECO) under the Trust in Real Estate Services Act (TRESA).

Is Course 2 harder than Course 1?

Most learners find Course 2 the most demanding course in the program. It moves from the theory of Course 1 (Real Estate Essentials) to applying the law to real residential transactions, agreements and closings.

Are these official Humber, OREA or RECO exam questions?

No. These are original OpenExamPrep practice questions written to the Course 2 syllabus and TRESA rules. Official course materials and examinations come from Humber Polytechnic, OREA and RECO.