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.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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Which mandatory disclosure is required under the REBBA concerning interest-bearing trust accounts?

If trust funds are held in an interest-bearing account, disclose the interest rate.
If trust funds are more than $10,000 in an account.
The broker’s financial statements for the past year.
Personal information of the account recipients.
Monthly account balances shared with sellers.
Three-year forecast of account usage.

The correct answer is: If trust funds are held in an interest-bearing account, disclose the interest rate.

Mandatory disclosures under the REBBA (Real Estate and Business Brokers Act) are necessary to promote transparency and protect consumers. Option A, disclosing the interest rate when trust funds are held in an interest-bearing account, is the correct answer because it provides important information about the handling of funds in the account. Option B is incorrect because the threshold for disclosing trust fund amounts is $5,000, not $10,000. Option C is incorrect because the broker's financial statements are not required to be disclosed under REBBA. Option D is incorrect because disclosing personal information of account recipients is not relevant to trust account regulations. Option E is incorrect because monthly account balances are not required to be shared with sellers, only the interest rate if the funds are held in an interest-bearing account. Option F is incorrect because a three-year forecast of account usage is not a mandatory disclosure under REBBA.