Humber/Ontario Real Estate Course 2 Exam Practice

When must a receipt of funds record be prepared?

1. For every amount of funds received in relation to a real estate transaction, subject to certain exceptions.

2. If the deposit that a registrant receives exceeds $5,000.

3. Only if the registrant judges the transaction to be suspicious.

4. As required by the Real Estate Council of Ontario, pursuant to REBBA.

The correct answer is: For every amount of funds received in relation to a real estate transaction, subject to certain exceptions.

A receipt of funds record must be prepared for every amount of funds received in relation to a real estate transaction, subject to certain exceptions. This is important to ensure transparency and accountability in real estate transactions. The receipt of funds record helps track and document the flow of money in a transaction, which is essential for protecting both the clients and the registrants involved. By preparing a receipt of funds record for every amount of funds received, it helps in maintaining proper records and compliance with regulations. The other options are incorrect: B. If the deposit that a registrant receives exceeds $5,000 - This is not the correct condition for preparing a receipt of funds record. It should be prepared for every amount of funds received, not just when a deposit exceeds a certain threshold. C. Only if the registrant judges the transaction to be suspicious - This is not a sufficient or correct reason for preparing a receipt of funds record. It should be prepared for every amount of funds received, regardless of the registrant's judgment of the transaction. D. As required by the Real Estate Council of Ontario, pursuant to REBBA - While REBBA may set out requirements for record-keeping, the general rule is to prepare a receipt of funds record for every amount of funds received, not just as specifically required by the Real Estate Council of Ontario.