Humber/Ontario Real Estate Course 2 Exam Practice

Broker of Record Smith, following the closing of a transaction, has transferred the appropriate amounts into the brokerage's commission trust account and is preparing to issue cheques relating to earned remuneration. The correct order for disbursement is:

1. The co-operating brokerage, the listing brokerage and lastly the employed salespersons and brokers of the listing brokerage.

2. The co-operating brokerage, employed salespersons and brokers of the listing brokerage and lastly the listing brokerage.

3. The listing brokerage, the co-operating brokerage and lastly employed salespersons and brokers employed by the listing brokerage.

4. The listing brokerage followed by its employed salespersons and brokers; the co-operating brokerage is not paid from the commission trust account.

5. The brokerage itself first, then its legal representatives, followed by employed salespersons and brokers.

6. The listing brokerage and its employed salespersons and brokers, followed by any external contractors.

The correct answer is: The co-operating brokerage, employed salespersons and brokers of the listing brokerage and lastly the listing brokerage.

In a real estate transaction, the correct order for disbursement of earned remuneration is an important process that must be conducted accurately. In this scenario, the correct answer is option B. The reason option B is correct is because the co-operating brokerage should be paid first, followed by the employed salespersons and brokers of the listing brokerage, and lastly, the listing brokerage. This order ensures that all parties involved receive their rightful compensation in a fair and organized manner. Options A, C, D, E, and F are incorrect because they do not follow the standard practice of disbursement in a real estate transaction. It is crucial to prioritize the payments to the co-operating brokerage, followed by the salespersons and brokers before compensating the listing brokerage. This ensures transparency, compliance with regulations, and professionalism in handling financial transactions in real estate.