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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What is a commission trust account used for?

Receiving and disbursing remuneration only.
Returning any excess funds over earned remuneration to the seller.
Disbursing earned remuneration to the brokerage holding the deposit.
Disbursing remuneration directly to employed salespersons with a cooperating brokerage.
Holding deposits until transaction completion.
Paying property taxes on behalf of the seller.

The correct answer is: Receiving and disbursing remuneration only.

A commission trust account is primarily used for receiving and disbursing remuneration only. This account is specifically designed to hold funds related to real estate transactions, such as commission earned by real estate professionals. It ensures that these funds are kept separately from the brokerage's operating funds and are handled appropriately in accordance with regulations and ethical standards. This separation maintains transparency, protects the parties involved, and ensures that the right individuals receive their earned remuneration. Therefore, option A is the correct choice.