Humber/Ontario Real Estate Course 2 Exam Practice

Question: 1 / 1300

If Salesperson Gallo receives a $15,000 deposit from a buyer for an accepted agreement of purchase and sale, this action:

Must prompt a thorough audit by FINTRAC if paid in cash.

Requires mandatory reporting to FINTRAC if received in cash or virtual currency.

The correct answer is B because under the regulations outlined by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), any cash or virtual currency transactions equal to or over $10,000 must be reported. In this scenario, Salesperson Gallo received a $15,000 deposit from a buyer, which exceeds the threshold set by FINTRAC. Therefore, Salesperson Gallo is required to report this transaction to FINTRAC due to the amount received and the method of payment, whether in cash or virtual currency.

Options A, C, E, and F are incorrect because they do not accurately reflect the reporting requirements set by FINTRAC in this situation. Option D is also incorrect as it overstates the reporting requirement by suggesting that all transactions need to be reported regardless of the payment method or amount, which is not the case according to FINTRAC regulations.

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Doesn't need to be reported if the deposit was through wire transfer.

Needs to be reported to FINTRAC regardless of payment method.

Should be reported to FINTRAC only if received by certified cheque.

Requires no action from Salesperson Gallo.

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