Humber/Ontario Real Estate Course 3 Exam Practice

Under what condition can a brokerage have more than one real estate trust account according to REBBA?

1. If the brokerage employs multiple salespeople

2. If trust accounts are at the same financial branch and reconciled monthly

3. If managing both residential and commercial properties

4. If authorized by the Registrar

5. If annual brokerage revenue exceeds a threshold

6. If handling special client accounts

The correct answer is: If authorized by the Registrar

A brokerage can maintain more than one real estate trust account if authorized by the Registrar. This condition is crucial because it ensures that the brokerage is operating under the oversight and regulations established by the governing body, which in this case is the Real Estate Council of Ontario (RECO) through the Real Estate and Business Brokers Act (REBBA). This authorization is essential for maintaining compliance with regulatory standards and protecting consumer interests, as having multiple trust accounts can complicate financial management and client transactions. It is a measure to ensure that a brokerage is competent and trustworthy enough to handle multiple accounts, reflecting accountability in their financial operations. Other conditions related to factors like the number of salespeople, types of properties managed, financial thresholds, or the nature of client accounts do not explicitly grant a brokerage the authority to have multiple trust accounts without the Registrar's approval. Hence, without that specific authorization, establishing more than one trust account could lead to compliance issues or regulatory consequences.