Humber/Ontario Real Estate Course 1 Exam Practice

What is the primary responsibility of the board of directors at the Real Estate Council of Ontario?

1. Day-to-day operations of individual brokerages.

2. Formulating policies for RECO.

3. Recording real estate transactions.

4. Granting land use permits.

5. City zoning decisions.

6. Monitoring MLS® systems.

The correct answer is: Formulating policies for RECO.

The primary responsibility of the board of directors at the Real Estate Council of Ontario (RECO) is to formulate policies for the organization. This role is essential as it ensures that RECO operates effectively and within the legal framework governing real estate activities in Ontario. The board defines the strategic direction and helps establish guidelines that promote professionalism and accountability in the real estate industry. By focusing on policy formulation, the board ensures that they address the needs of the real estate sector, oversee regulatory practices, and manage the framework within which real estate professionals operate. This involves developing rules, standards, and practices that govern the conduct of real estate agents and brokerages in Ontario. The other options do not accurately reflect the scope of the board’s responsibilities. Day-to-day operations of individual brokerages are managed by the brokerages themselves, while recording real estate transactions is a function carried out by other entities such as land registries. Granting land use permits and city zoning decisions fall within the jurisdiction of municipal governments rather than RECO. Lastly, monitoring MLS® systems is typically a responsibility associated with the multiple listing services and their governing bodies, rather than the oversight of the board at RECO. Therefore, formulating policies is a critical function that enables RECO to fulfill its mandate