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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Why must a buyer provide evidence that their downpayment is from personal resources?

To comply with anti-fraud measures
To receive tax benefits
To qualify for government grants
To avoid additional bank fees
To increase credit score
To adjust property valuation

The correct answer is: To comply with anti-fraud measures

Buyers are required to provide evidence that their downpayment is from personal resources to comply with anti-fraud measures. This is crucial in real estate transactions to prevent fraudulent activities such as money laundering, misrepresentation of funds, or fraudulent mortgage applications. By verifying the source of the downpayment, it helps ensure the legitimacy of the transaction and protects all parties involved. This practice is a standard procedure in the real estate industry to maintain transparency and trust in the transaction process. The other options are not directly related to the requirement for providing evidence of personal resources for the downpayment. Tax benefits, government grants, avoiding bank fees, increasing credit score, and adjusting property valuation are not the primary reasons why buyers need to demonstrate the source of their downpayment.