Humber/Ontario Real Estate Course 2 Exam Practice

Which is NOT an indicator of a suspicious transaction in real estate?

1. A client wants to submit cash when closing a real estate sale.

2. A client purchases a property after having inspected it only once.

3. A client makes multiple offers in a short period.

4. A client pays for the deposit using a cheque from a third party.

5. A client buys multiple properties with little regard to what exactly is being purchased.

6. A client attempts to pay using foreign currency from multiple sources.

The correct answer is: A client purchases a property after having inspected it only once.

The correct answer is B. A client purchasing a property after inspecting it only once is not necessarily an indicator of a suspicious transaction in real estate. While it may be prudent for clients to conduct multiple inspections before making a purchase, the frequency of property inspections alone does not inherently signify a suspicious transaction. On the other hand, the other options (A, C, D, E, and F) are indicators of potentially suspicious transactions in real estate. A client wanting to submit cash when closing a real estate sale, making multiple offers in a short period, paying for the deposit using a cheque from a third party, buying multiple properties with little regard to specifics, or attempting to pay with foreign currency from multiple sources can all raise red flags and prompt further investigation to ensure compliance with anti-money laundering regulations and to prevent illicit activities in real estate transactions.