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.

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What must Broker of Record Koster do to disburse remuneration earned to applicable salespersons and the brokerage after receiving a cheque for the balance of remuneration from a lawyer?

Deposit two cheques in the commission trust account, one for the balance of remuneration from the lawyer and the other for the deposit held in the real estate trust account.
Deposit the cheque for the balance of the remuneration in the real estate trust account and then issue a cheque from that account for the full amount of earned remuneration to the commission trust account.
Deposit the cheque in the brokerage’s general account.
Deposit the cheque in the savings account and disburse directly.
Ensure all funds are handled through the operational expense account.
Obtain authorization from a financial supervisor before disbursing the funds.

The correct answer is: Deposit two cheques in the commission trust account, one for the balance of remuneration from the lawyer and the other for the deposit held in the real estate trust account.

In this scenario, the correct answer is A because the Broker of Record Koster must deposit two cheques in the commission trust account. One cheque should be for the balance of remuneration received from the lawyer and the other cheque should be for the deposit held in the real estate trust account. This process ensures proper separation of funds and compliance with regulatory requirements. By depositing the cheques into the respective accounts, the brokerage can accurately track and disburse funds to salespersons and the brokerage itself. Options B, C, D, E, and F are incorrect because they do not adhere to the necessary steps and regulations for handling remuneration in real estate transactions. These options do not involve the proper segregation of funds or compliance with trust account regulations, which are crucial in real estate transactions to protect clients' funds and ensure transparency in financial operations.