Humber/Ontario Real Estate Course 2 Exam Practice

What should a salesperson do if a buyer requests that a $10,000 deposit not be placed in the real estate trust account for seven days due to insufficient funds?

1. Advise the brokerage and seek guidance from the broker of record or manager

2. Delay processing the paperwork, including the deposit, for seven days

3. Perform the buyer's request without reporting to any authority

4. Decide that the cheque can be cashed later, as the issue is irrelevant

5. Seek approval from the regulatory body to delay depositing the funds

6. Wait until the buyer confirms sufficient funds

The correct answer is: Advise the brokerage and seek guidance from the broker of record or manager

In this scenario, the correct course of action for the salesperson is to advise the brokerage and seek guidance from the broker of record or manager. This is important because it ensures compliance with the regulations regarding trust accounts in real estate transactions. By seeking guidance from the appropriate authority within the brokerage, the salesperson can address the buyer's request in a proper and legally compliant manner. It is crucial to involve the broker of record or manager in situations like these to ensure that all parties are aware of the situation and that the proper steps are taken to protect the funds involved in the transaction. Options B, C, D, and F are not correct as they do not involve seeking guidance from the brokerage or a higher authority within the brokerage. Option E is also not the best course of action as approval from the regulatory body may not be necessary in this situation and it is more appropriate to handle this internally within the brokerage first.