Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 2 Exam with our comprehensive quiz that covers essential concepts and topics. Enhance your understanding with multiple choice questions designed to test your knowledge and boost your confidence before the exam.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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To comply with FINTRAC requirements for a deposit from a regulated trust and loan company into a brokerage's real estate trust account, what is needed?

  1. A receipt of funds record must be completed by the brokerage.

  2. A receipt of funds record would be required, IF the deposit was instead placed in a lawyer's trust account.

  3. The brokerage is not obligated to complete a receipt of funds form concerning this deposit, as financial entities are exempted.

  4. A receipt of funds record is not required because the deposit cheque exceeds $10,000.

The correct answer is: The brokerage is not obligated to complete a receipt of funds form concerning this deposit, as financial entities are exempted.

To comply with FINTRAC requirements for a deposit from a regulated trust and loan company into a brokerage's real estate trust account, the brokerage is indeed exempted from completing a receipt of funds form. Financial entities, including trust and loan companies, are exempted from the requirement to complete a receipt of funds record when making deposits into a brokerage's real estate trust account. This exemption is crucial to ensure the efficient and legal handling of funds in real estate transactions involving regulated financial institutions. Option A is incorrect because, in this scenario, the brokerage is not obligated to complete a receipt of funds record for the deposit. Option B is incorrect as it implies that a receipt of funds record might be required if the deposit was placed in a lawyer's trust account, which is not relevant to the regulation regarding a deposit from a trust and loan company into a brokerage's real estate trust account. Option D is incorrect because the exemption for completing a receipt of funds does not depend on the amount of the deposit cheque exceeding $10,000.