Humber/Ontario Real Estate Course 2 Exam Practice

Which of the following would NOT be typically viewed as a suspicious transaction under FINTRAC's suspicious transaction reporting requirements?

1. Buyer agrees to pay more than the asking price for a property they’ve never visited prior to making an offer.

2. Seller insists on listing the property 50,000 above market value without concern for slow sale prospects.

3. Buyer purchases several rental properties quickly, without concern for repair costs or tenant conditions.

4. Buyer agrees on a price much lower than market value, paying a significant amount under the table in cash post-closing.

5. Seller sells multiple high-value assets within a short period without a clear explanation for such sales.

6. Buyer makes repeated off-market purchases directly from owners avoiding standard property listings.

The correct answer is: Seller insists on listing the property 50,000 above market value without concern for slow sale prospects.

Option B would NOT be typically viewed as a suspicious transaction under FINTRAC's suspicious transaction reporting requirements because it involves a seller listing the property for $50,000 above market value without concern for slow sale prospects. This situation, although it may not be the most financially sensible decision for the seller, does not inherently raise red flags related to money laundering or illegal activities. On the other hand, the other options involve behaviors that could trigger suspicion under FINTRAC's regulations: A. The buyer agreeing to pay more than the asking price for a property they’ve never visited could be seen as unusual. C. The buyer purchasing several rental properties quickly, without caring about repair costs or tenant conditions, could indicate an attempt to launder money through real estate. D. The buyer agreeing on a price much lower than market value and paying a significant amount under the table in cash post-closing raises concerns about potential money laundering. E. The seller selling multiple high-value assets within a short period without a clear explanation may also suggest suspicious activity. F. The buyer making repeated off-market purchases directly from owners to avoid standard property listings could potentially be viewed as an attempt to conceal the transactions and the source of funds.