Humber/Ontario Real Estate Course 2 Exam Practice

In assisting consumers with real estate transactions, what is true about a lawyer’s role?

1. A lawyer is bound by the REBBA Code of Ethics.

2. A lawyer reviews agreements and completes closing processes.

3. A lawyer only communicates with the real estate salesperson, not directly with the client.

4. A lawyer is governed by the AIC.

5. A lawyer must prepare the original listing agreement.

6. A lawyer typically arranges property inspections.

The correct answer is: A lawyer reviews agreements and completes closing processes.

In assisting consumers with real estate transactions, the correct statement about a lawyer's role is that they review agreements and complete closing processes. This is a crucial part of the real estate transaction process as lawyers are responsible for ensuring that all legal aspects of the transaction are properly handled. They review contracts, conduct title searches, handle the transfer of funds, and oversee the closing of the deal to ensure that it is legally binding and protects the interests of their clients. The other options are incorrect: A. A lawyer is not bound by the REBBA Code of Ethics, as this code specifically applies to real estate professionals such as brokers and salespersons. C. A lawyer communicates directly with the client to provide legal advice and guidance throughout the transaction. D. Lawyers are not governed by the AIC (Appraisal Institute of Canada); their practice is regulated by the Law Society of Ontario. E. The preparation of the original listing agreement is typically handled by the real estate agent or broker, not the lawyer. F. Property inspections are usually arranged by the buyer or the buyer's agent, not the lawyer.