Humber/Ontario Real Estate Course 3 Exam Practice

What is the primary purpose of the Real Estate Council of Ontario (RECO)?

1. To promote ongoing education for real estate professionals

2. To regulate the conduct of real estate professionals

3. To set commission rates for real estate transactions

4. To mediate disputes between buyers and sellers

The correct answer is: To regulate the conduct of real estate professionals

The primary purpose of the Real Estate Council of Ontario (RECO) is to regulate the conduct of real estate professionals. This regulatory function is crucial as it ensures that real estate agents and brokers adhere to the established laws, standards, and ethical guidelines that govern the industry. By overseeing the activities of these professionals, RECO aims to protect consumers and maintain the integrity of the real estate market in Ontario. In fulfilling its regulatory role, RECO has the authority to enforce compliance, investigate complaints against professionals, and take disciplinary actions when necessary. This oversight not only helps to safeguard consumers' interests but also promotes a level of professionalism within the industry, fostering trust and confidence in real estate transactions. Other options, while related to aspects of the real estate industry, do not capture the primary purpose of RECO. For example, promoting ongoing education is an important function that supports real estate professionals but is not the main mission. Setting commission rates is not within RECO's mandate, as these are typically negotiated between parties in a transaction. Mediation of disputes, although a significant aspect of real estate conflicts, is not the core regulatory responsibility of RECO. Hence, the focus on regulation is what distinctly defines RECO’s primary role.