Which statement best describes the consequences of CREA code violations compared to Real Estate Brokers Act violations?

• A. CREA code violation leads to loss of membership; Real Estate Brokers Act violation leads to loss of the right to trade
• B. Both lead to imprisonment
• C. Both lead to fines only
• D. No consequences

Answer: (A)

The key idea here is the difference between an ethical-standards discipline and a licensing regulation. CREA codes govern professional conduct within the real estate community; when those ethical standards are violated, the association can discipline a member by removing them from membership or restricting their access to association resources like MLS. That is why the consequence described is loss of membership.

In contrast, the Real Estate Brokers Act is a provincial statute that regulates who may trade in real estate. Violations of this act lead to regulatory action by the licensing authority, typically resulting in suspension or revocation of the license—the loss of the right to trade. Imprisonment isn’t the standard remedy for CREA violations, and while fines can occur under provincial statutes, the most direct and common consequence for a CREA code violation is membership loss, whereas the most direct consequence for a Real Estate Brokers Act violation is the loss of the license to trade. That distinction is why the statement pairing membership loss with license revocation best describes the difference.