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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When a registrant handles a deposit cheque of $50,000 from a regulated trust and loan company, into whose account must the cheque be deposited?

Brokerage's real estate trust account
Broker's operational account
Client's personal account
Lawyer's trust account

The correct answer is: Brokerage's real estate trust account

When a registrant handles a deposit cheque from a regulated trust and loan company, such as in this scenario with a deposit cheque of $50,000, the cheque must be deposited into the brokerage's real estate trust account. This is because trust funds, which include deposit cheques, must be deposited into the brokerage's real estate trust account in compliance with regulatory requirements. This account is specifically designated to hold funds in trust for clients involved in real estate transactions, ensuring the protection and appropriate handling of client funds. Option B, the broker's operational account, is incorrect as operational accounts are used for the brokerage's day-to-day business transactions and should not commingle with trust funds. Option C, the client's personal account, is incorrect as client funds should never be deposited into a personal account as it could lead to commingling of funds and is against regulations. Option D, the lawyer's trust account, is also incorrect as legal professionals, such as lawyers, have their trust accounts separate from real estate brokerages' trust accounts, as their regulation and oversight differ.