Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Ontario Real Estate Exam with our comprehensive Humber Course 2 Exam Practice quiz. Engage with multiple choice questions and detailed explanations, designed to help you excel.

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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According to REBBA requirements, how should Broker of Record Patel handle bank charges related to the real estate trust account?

No bank charges can appear in a real estate trust account.
Bank charges can appear in the real estate trust account, provided that such are not deducted from funds held in trust for specific transactions.
Bank charges can appear in the real estate trust account, provided that such amounts do not exceed $25.00 per month.
Such charges can appear in the real estate trust account, provided that they are clearly identified on bank statements.

The correct answer is: Bank charges can appear in the real estate trust account, provided that such are not deducted from funds held in trust for specific transactions.

According to REBBA requirements, bank charges can appear in a real estate trust account, as long as they are not deducted from funds held in trust for specific transactions. It is crucial that any bank charges associated with the trust account are separate from the funds intended for clients or specific real estate transactions to maintain transparency and trust. This rule helps ensure that client funds are protected and not mixed with operational expenses. Therefore, option B is the correct choice because it aligns with these guidelines. Option A is incorrect because some bank charges may be applicable to a real estate trust account, as long as they are not taken from client funds. Option C is inaccurate as there is no specified cap of $25.00 per month for bank charges in the trust account according to REBBA requirements. Option D is not as precise as option B, as just identifying the bank charges on the statements may not be enough; the crucial aspect is to ensure they are not deducted from client funds.