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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How do brokers ensure proper management of trust transactions according to regulations?

Conduct reconciliation each month.
Keep a detailed trust ledger accurately.
Disbursement allowed by accountant.
Interest payments directly to brokerage.
Only brokers handle trust accounts.
Annual review by financial auditors.

The correct answer is: Keep a detailed trust ledger accurately.

Brokers ensure proper management of trust transactions according to regulations by keeping a detailed trust ledger accurately. A trust ledger is a crucial document that records all trust transactions, including deposits, withdrawals, and any interest accrued. It helps maintain transparency, accountability, and accuracy in handling clients' funds. Conducting reconciliation each month, as stated in option A, is a necessary practice to ensure the trust account's accuracy but is not the primary method for proper management of trust transactions. The disbursement being allowed by an accountant (option C) is not directly related to trust account management, and interest payments going directly to the brokerage (option D) are not best practice and should go to the client. Option E stating that only brokers handle trust accounts is inaccurate, as trust accounts may involve multiple individuals within the brokerage. Finally, option F mentioning an annual review by financial auditors may be beneficial but does not address the day-to-day management of trust transactions effectively, making option B the most appropriate choice for ensuring compliance with regulations.