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Ontario Real Estate Licensing Exam Practice · Question

A real estate salesperson in Ontario is found by RECO to have misappropriated client funds. Which of the following is the most severe disciplinary action RECO can impose?

Under the Trust in Real Estate Services Act, 2002 (TRESA, 2002) and its regulations, RECO has the authority to revoke a registrant's registration for serious br

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Question: A real estate salesperson in Ontario is found by RECO to have misappropriated client funds. Which of the following is the most severe disciplinary action RECO can impose?

Answer options:

  • Issuing a written warning and requiring additional training.
  • Imposing a monetary penalty of up to $50,000.
  • Suspending the salesperson's registration for a specified period. ✅ Revoking the salesperson's registration permanently.

Correct answer: Revoking the salesperson's registration permanently.

Explanation: Under the Trust in Real Estate Services Act, 2002 (TRESA, 2002) and its regulations, RECO has the authority to revoke a registrant's registration for serious breaches of conduct, such as misappropriation of funds, which is the most severe disciplinary measure to protect the public interest.

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