Humber/Ontario Real Estate Course 2 Exam Practice

Which indicator does NOT typically point to a suspicious real estate transaction?

1. A client attempts to close the sale with cash.

2. A client buys multiple properties with little regard to specifics.

3. A client uses a cheque from a third party for the deposit.

4. A client who has inspected the property multiple times before making a purchase.

5. A client submits several offers on various properties in a short period.

6. A client wants a title transfer without proper documentation.

The correct answer is: A client who has inspected the property multiple times before making a purchase.

The indicator that does not typically point to a suspicious real estate transaction is when a client has inspected the property multiple times before making a purchase. Typically, a client inspecting a property thoroughly before making a purchase is a sign of due diligence and careful consideration, rather than a red flag for a suspicious transaction. In contrast, the other options can be indicators of suspicious real estate transactions: - A client attempting to close the sale with cash (Option A) can raise concerns about the source of the funds and potential money laundering. - A client buying multiple properties with little regard to specifics (Option B) may indicate an attempt to quickly move illicit funds through real estate. - A client using a cheque from a third party for the deposit (Option C) might suggest layering or placement of funds to obscure their origin. - A client wanting a title transfer without proper documentation (Option F) can be a signal of fraudulent activity or attempts to avoid scrutiny. Therefore, in the context of suspicious real estate transactions, clients inspecting a property multiple times before making a purchase is not typically viewed as a concerning indicator.