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 must the terms for paying interest on trust account funds be detailed?

  1. The buyer is always the beneficial owner

  2. Deposit funds cannot be transferred electronically

  3. Funds cannot be put in an interest-bearing security

  4. The terms should be outlined in the purchase agreement

  5. Interest is payable in cash only

  6. Interest is not allowed on trust account funds

The correct answer is: The terms should be outlined in the purchase agreement

In the context of trust account funds in a real estate transaction, it is crucial to outline the terms for paying interest. This is typically done in the purchase agreement to ensure clarity and transparency between the parties involved in the transaction. By detailing the terms in the purchase agreement, all parties are aware of how any interest earned on the trust account funds will be handled. This helps prevent misunderstandings or disputes regarding the interest on the funds held in trust. Therefore, option D is the correct answer as it emphasizes the importance of outlining the terms for paying interest in the purchase agreement.

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