Humber/Ontario Real Estate Course 3 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 3 Exam with our practice quizzes. Study using multiple-choice questions complete with hints and explanations. Ace your exam with confidence!

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How must Broker of Record Koster handle the disbursal of earned remuneration?

Deposit the cheque for remuneration in the real estate trust account and then issue a cheque for the full amount to the commission trust account.
Deposit two cheques in the commission trust account: one from the lawyer and the other for the deposit held in the real estate trust account.
Deposit the cheque for the balance of remuneration directly into the brokerage's general account.
Deposit the cheque in the real estate trust account and retain the funds until confirmation from the seller.
Remit all amounts directly to the applicable salespersons from the real estate trust account.
Issue a cheque from the brokerage's general account for any trust amounts received.

The correct answer is: Deposit two cheques in the commission trust account: one from the lawyer and the other for the deposit held in the real estate trust account.

The correct approach for Broker of Record Koster in handling the disbursal of earned remuneration is to deposit two cheques into the commission trust account: one from the lawyer and another for the deposit held in the real estate trust account. This method ensures a clear and organized separation of funds while complying with the regulations concerning the handling of earned commissions and transactions relating to real estate dealings. In this context, depositing funds from the lawyer into the commission trust account reflects the authorized transfer of remuneration as per the agreed-upon amounts from the transaction, while the second deposit serves to account for any deposits that were previously held in the real estate trust account. This accurately reflects the financial movements of the brokerage and complies with regulatory expectations regarding handling trust accounts and earned commissions. This method is important as it illustrates the necessity of maintaining transparency and proper accounting practices within real estate transactions, ensuring that all funds are traceable and properly allocated to their respective purposes.