60% of Passit users (for Real Estate as a Professional Career) incorrectly answer a Consumer Protection Act question on their first attempt. A probable cause is its complexity when it comes to real estate. Here's four key points to remember:
1. The Act DOES APPLY (for real estate purposes) to service-related agreements; e.g., buyer and seller representation agreements.
2. The Act DOES NOT APPLY to consumer transactions involving the purchase and sale of real estate (i.e., agreements of purchase and sale), EXCEPT — it does apply to time share transactions.
3. The Act DOES NOT APPLY to consumer transactions under the Residential Tenancies Act; e.g., residential tenancy agreements.
Two additional things to note: The CPA is a provincial statute, not a federal one. Also, if a real estate-related complaint is lodged under the Act, it is typically referred to the Real Estate Council of Ontario.