Humber/Ontario Real Estate Course 2 Exam Practice

To comply with FINTRAC requirements for a deposit from a regulated trust and loan company into a brokerage's real estate trust account, what is needed?

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 instead placed in a lawyer's trust account.

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

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

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

To comply with FINTRAC requirements for a deposit from a regulated trust and loan company into a brokerage's real estate trust account, the brokerage is indeed exempted from completing a receipt of funds form. Financial entities, including trust and loan companies, are exempted from the requirement to complete a receipt of funds record when making deposits into a brokerage's real estate trust account. This exemption is crucial to ensure the efficient and legal handling of funds in real estate transactions involving regulated financial institutions. Option A is incorrect because, in this scenario, the brokerage is not obligated to complete a receipt of funds record for the deposit. Option B is incorrect as it implies that a receipt of funds record might be required if the deposit was placed in a lawyer's trust account, which is not relevant to the regulation regarding a deposit from a trust and loan company into a brokerage's real estate trust account. Option D is incorrect because the exemption for completing a receipt of funds does not depend on the amount of the deposit cheque exceeding $10,000.