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 preparing an agreement of purchase and sale for a buyer client, having that buyer sign the agreement and receiving a deposit from that person, a salesperson:

Will need to complete forms in compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Must obtain the deposit at the time that the offer is signed.
Will only require the buyer's signature on the agreement in order to complete that buyer's signing process.
Is not permitted to add any additional schedules.
Must immediately verify the buyer’s financial status with a certified institution.
Is required to inform local authorities of the transaction for record-keeping.

The correct answer is: Will need to complete forms in compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

When preparing an agreement of purchase and sale for a buyer client and receiving a deposit from them, a salesperson will need to complete forms in compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. This act requires real estate professionals to verify the identity of their clients and report any suspicious transactions. It is crucial for real estate professionals to follow these regulations to prevent money laundering and terrorist financing activities within the industry. The other options are not correct because: B. The deposit does not need to be obtained at the exact time the offer is signed; it can sometimes be collected later depending on the terms of the agreement. C. Simply obtaining the buyer's signature is not enough; the salesperson must also complete other necessary documentation in the agreement process. D. Salespersons are permitted to add additional schedules to the agreement if needed to outline specific terms and conditions of the transaction. E. While understanding the buyer's financial status is important, there is no requirement to immediately verify it with a certified institution during the signing process. F. Local authorities do not need to be informed of every transaction; however, compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is crucial for reporting and record-keeping purposes.