Humber/Ontario Real Estate Course 1 Exam Practice

When is a large cash transaction report required in real estate?

1. Only if the single amount of cash received is $20,000 or more

2. When two or more cash amounts from the same source within 24 hours total $10,000 or more

3. Whenever cash is used as a deposit for a real estate transaction

4. When it is suspected $10,000 or more cash will be received if an offer is drafted

5. If the cash received is little over $9,000 within the business week

6. Any transaction where cash is the primary mode of payment

The correct answer is: When two or more cash amounts from the same source within 24 hours total $10,000 or more

The requirement for a large cash transaction report in real estate is tied to the need for transparency and to guard against money laundering and other illicit activities. The correct scenario involves situations where multiple cash amounts from the same source, when aggregated within a 24-hour period, reach a total of $10,000 or more. This regulation is designed to capture potentially suspicious activities that may not be evident when looking only at single cash transactions. This emphasis on aggregating cash amounts reflects the understanding that individuals may attempt to evade reporting requirements by breaking up their cash transactions into smaller amounts. By recognizing total cash received from a single source within a short timeframe, regulators can better monitor for patterns that could indicate illegal behavior. Other choices may focus on single transactions or specific amounts that do not align with this aggregation principle, which is critical for the reporting requirements in practice. Understanding this regulation helps maintain the integrity of the real estate market and ensures compliance with anti-money laundering laws.