Humber/Ontario Real Estate Course 2 Exam Practice

If a brokerage disburses funds from the commission trust account, what is typically the first disbursement?

1. The first disbursement is typically to salespersons employed by the brokerage and second to any co-operating brokerage

2. The first disbursement is typically made to any co-operating brokerage

3. The second disbursement is typically to the brokerage's general account

4. The final disbursement is to salespersons with the co-operating brokerage

The correct answer is: The first disbursement is typically made to any co-operating brokerage

When a brokerage disburses funds from the commission trust account, the first disbursement is typically made to any cooperating brokerage involved in the transaction. This is because cooperating brokerages are entitled to receive their share of the commission after the sale has been completed. Option A is incorrect because salespersons employed by the brokerage are typically paid after any cooperating brokerage has received its share. Option C is incorrect because the disbursement to the brokerage's general account usually occurs after all other parties have been paid. Option D is incorrect as salespersons with the cooperating brokerage are usually paid before any disbursement to the brokerage's general account.