Humber/Ontario Real Estate Course 2 Exam Practice

Disable ads (and more) with a membership for a one time $2.99 payment

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!

Practice this question and more.

Which statement is correct regarding a brokerage that has a commission trust account and a real estate trust account?

Disbursements from the commission trust account should follow a specific order of payment beginning with the listing brokerage.
Excess funds held in the real estate trust account, over and above remuneration earned, must be placed in the commission trust account prior to disbursement.
Real estate trust account must be established in accordance with REBBA, but a commission trust account is not required under the Act and Regulations.
The brokerage is in full compliance with REBBA, as both accounts must be established and maintained by brokerages.

The correct answer is: Real estate trust account must be established in accordance with REBBA, but a commission trust account is not required under the Act and Regulations.

In Ontario, according to the Real Estate and Business Brokers Act (REBBA), it is mandatory for a real estate brokerage to establish and maintain a real estate trust account to hold funds received in trust for clients. However, there is no specific requirement in the Act or Regulations for a brokerage to have a separate commission trust account. Therefore, the statement "Real estate trust account must be established in accordance with REBBA, but a commission trust account is not required under the Act and Regulations" is correct. Regarding the other options: A. Disbursements from the commission trust account do not necessarily follow a specific order of payment beginning with the listing brokerage. The order of disbursements can vary depending on the specific agreements and transactions. B. Excess funds held in the real estate trust account should not automatically be transferred to the commission trust account. These funds should be dealt with in accordance with the regulations and agreements governing real estate transactions. D. While having both a commission trust account and a real estate trust account may be a good practice for many brokerages, the mandatory requirement is to have a real estate trust account, not necessarily a commission trust account as well.