Humber/Ontario Real Estate Course 3 Exam Practice

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What must be done to comply with FINTRAC requirements when XYZ Trust and Loan Company deposits a $50,000 cheque into the brokerage's real estate trust account upon offer acceptance?

  1. A receipt of funds record must be completed by the brokerage.

  2. A receipt of funds record would be required if the deposit was placed in a lawyer's trust account.

  3. The brokerage is not obligated to complete a receipt of funds form as financial entities are exempted.

  4. A receipt of funds record is not required because the deposit cheque exceeds $10,000.

  5. A receipt of funds record is required only if the cheque is from a non-regulated company.

  6. Complete a receipt of funds form only if the amount deposited changes.

The correct answer is: The brokerage is not obligated to complete a receipt of funds form as financial entities are exempted.

To comply with FINTRAC requirements, when XYZ Trust and Loan Company deposits a $50,000 cheque into the brokerage's real estate trust account, the brokerage is not obligated to complete a receipt of funds form as financial entities are exempted. This is the correct answer because financial entities, such as trust and loan companies, are exempt from the requirement of completing a receipt of funds record under FINTRAC regulations. The exemption applies because these entities are already subject to their own stringent regulatory requirements and oversight. Options A, B, D, E, and F are incorrect: A. A receipt of funds record must be completed by the brokerage - This is incorrect because as mentioned earlier, financial entities like XYZ Trust and Loan Company are exempt from this requirement. B. A receipt of funds record would be required if the deposit was placed in a lawyer's trust account - This is incorrect as the scenario states that the deposit is made into the brokerage's real estate trust account, not a lawyer's trust account. D. A receipt of funds record is not required because the deposit cheque exceeds $10,000 - This is incorrect as the amount exceeding $10,000 triggers additional reporting requirements rather than exempting the receipt of funds form. E. A receipt

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