Humber/Ontario Real Estate Course 2 Exam Practice

Which deposit-related disclosure is mandatory under REBBA?

1. Must disclose the rate of interest if trust funds are in an interest-bearing account.

2. Must reveal a minimum 3% interest rate on variable interest accounts.

3. Must inform all parties of the date funds were deposited in the trust account.

4. Must disclose commission details to all parties involved in the transaction.

5. Must outline brokerage’s investment policies.

6. Must present monthly statements of the trust account to the seller.

The correct answer is: Must disclose the rate of interest if trust funds are in an interest-bearing account.

The correct answer is A. In Ontario, under the Real Estate and Business Brokers Act (REBBA), it is mandatory for real estate professionals to disclose the rate of interest if trust funds are held in an interest-bearing account. This disclosure is important to ensure transparency and to inform all parties involved in a real estate transaction about how their funds are being handled. Options B, C, D, E, and F are not mandatory deposit-related disclosures required under REBBA. Option B mentions a minimum 3% interest rate on variable interest accounts, which is not a specific requirement under REBBA. Option C refers to informing all parties of the date funds were deposited, which is important but not a specific mandate under REBBA. Option D discusses disclosing commission details, which is relevant but not specifically related to deposit-related disclosures. Option E mentions outlining brokerage's investment policies, which is important for transparency but not a mandatory deposit-related disclosure. Option F talks about presenting monthly statements of the trust account to the seller, which is relevant for transparency but not a specific requirement under REBBA.