Humber/Ontario Real Estate Course 2 Exam Practice

What records are required when a deposit cheque is received alongside an offer signed on May 6th and accepted on May 7th?

1. A deposit record is not necessary if funds are held in the brokerage’s trust account

2. A funds record must be completed, but no identification record is needed

3. Only an identification record is required

4. Both a receipt of funds record and an individual identification record are needed

5. The deposit should be placed in the brokerage’s trust account the same day the offer is accepted

6. No records are needed for deposit cheques under $10,000

The correct answer is: Both a receipt of funds record and an individual identification record are needed

When a deposit cheque is received alongside an offer signed on one day and accepted on the next day in Ontario Real Estate transactions, it is necessary to keep records to ensure compliance with the Real Estate and Business Brokers Act, 2002. In this scenario, both a receipt of funds record and an individual identification record are required. A receipt of funds record is needed to document the receipt of the deposit cheque to ensure transparency and accountability. The individual identification record is essential for verifying the identity of the individual who provided the deposit cheque. By maintaining both records, the brokerage can demonstrate regulatory compliance and safeguard against potential issues related to money laundering or improper handling of funds. It is important to note that simply holding the funds in the brokerage's trust account is not sufficient; proper records must be maintained to track the flow of funds and ensure compliance with regulations. Additionally, the amount of the deposit cheque does not determine the necessity of record-keeping; regardless of the amount, records should be kept in accordance with regulatory requirements.