OREA Cheat Sheet 2026

The 30 highest-yield OREA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Under REBBA 2002, what is the maximum fine for an individual convicted of trading in real estate without registration? → $50,000
2. A 'high-ratio mortgage' in Canada is defined as a mortgage where: → The borrower's down payment is less than 20% of the purchase price
3. In Ontario, the Mortgage Brokerages, Lenders and Administrators Act (MBLAA) is administered by: → The Financial Services Regulatory Authority of Ontario (FSRA)
4. Under Ontario law, what is a 'minor variance' under the Planning Act? → A minor deviation from a zoning by-law that can be approved by the Committee of Adjustment
5. Under REBBA 2002, how is the trust account reconciliation handled? → The brokerage must reconcile trust accounts monthly and maintain detailed records
6. Under the REBBA 2002 Code of Ethics, what is a registrant's primary obligation? → To protect and promote the interests of their client while treating all parties honestly
7. Mortgage default insurance (such as CMHC insurance) is designed to protect: → The lender against losses if the borrower defaults
8. Under REBBA 2002, what is the penalty for a corporation convicted of trading in real estate without registration? → $250,000
9. Under Ontario law, what is 'specific performance' in the context of real estate? → A court order requiring a party to complete the transaction as agreed in the contract
10. Under REBBA 2002, what is the registrant's obligation when they discover an error in a transaction document? → Correct it immediately and notify all affected parties
11. Which of the following best describes the 'amortization period' in mortgage financing? → The total time required to fully repay the mortgage
12. What is the standard maximum GDS ratio accepted by most institutional lenders in Canada? → 32%
13. A mortgage commitment letter from a lender typically includes: → The approved loan amount, interest rate, term, amortization, and any conditions
14. Under REBBA 2002, what is the consequence of a registrant failing to comply with a Discipline Committee order? → The registrant's registration may be suspended or revoked
15. In Ontario, who is legally authorized to prepare and register mortgage documents? → A licensed lawyer
16. What happens to deposits received by a brokerage under REBBA 2002? → They must be placed into a trust account within 5 business days
17. A mortgage that allows the borrower to repay the full balance at any time without penalty is called: → An open mortgage
18. In Ontario, what is a 'charge' in the Land Titles system? → The equivalent of a mortgage — a registered interest securing a debt against the property
19. In Ontario, what is the typical deposit amount in a residential transaction? → There is no standard — it is negotiable, but typically 5% of the purchase price
20. In Ontario, what does 'caveat emptor' mean in the context of real estate? → Buyer beware — the buyer is responsible for inspecting and investigating the property
21. In Ontario, what is a 'lien' on a property? → A legal claim or charge against a property as security for a debt or obligation
22. What is the role of the 'Broker of Record' under REBBA 2002? → To ensure the brokerage complies with REBBA 2002 and supervise all registrants
23. The Gross Debt Service (GDS) ratio measures: → Monthly housing costs as a percentage of gross monthly income
24. What are the two land registration systems that have historically operated in Ontario? → The Registry system and the Land Titles system
25. In Ontario, what is 'escheat' in property law? → The reversion of property to the Crown when a person dies without a will and without heirs
26. Under REBBA 2002, what must a registrant do if they become aware of a latent defect in a property they are listing? → Disclose the latent defect to prospective buyers
27. Under REBBA 2002, how long must a brokerage retain transaction records? → 6 years
28. In a typical Ontario residential real estate transaction, what is the correct order of steps? → Listing, showing, offer and negotiation, acceptance, conditions fulfilled, closing
29. What protections does REBBA 2002 provide for whistle-blowers who report violations? → REBBA 2002 prohibits retaliation against anyone who reports a violation in good faith
30. Which of the following would be grounds for RECO to refuse, suspend, or revoke a registration under REBBA 2002? → The registrant made a false statement on their registration application