Humber/Ontario Real Estate Course 1 Exam Practice

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

Prepare for the Humber/Ontario Real Estate Course 1 Exam with our comprehensive quiz. Test your understanding with multiple choice questions and detailed explanations. Build confidence and knowledge for a successful exam experience!

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 NOT correct about deposits held in a brokerage's real estate trust account?

Deposit checks must align with payment methods in the purchase agreement
Deposit should be payable to the brokerage's salesperson if handling both listing and sale
Funds can be released if both parties sign a mutual release in case of a dispute
Salesperson from a co-operating brokerage should get a receipt when handling deposits

The correct answer is: Deposit should be payable to the brokerage's salesperson if handling both listing and sale

The statement that deposits should be payable to the brokerage's salesperson if handling both listing and sale is not correct. In real estate transactions, deposits must clearly be made payable to the brokerage itself, not to an individual salesperson. This practice is important for ensuring accountability and proper handling of funds within the established legal and professional frameworks governing real estate transactions. When deposits are processed, they must be deposited in a trust account maintained by the brokerage, as this protects the buyer's funds while also complying with regulatory requirements. This approach upholds the integrity of the transaction and mitigates any potential conflicts regarding fund management.