Humber/Ontario Real Estate Course 3 Exam Practice

For a salesperson to release the deposit from the real estate trust account for remuneration purposes, what must be secured?

1. Verbal consent from a legal practitioner post-closing.

2. Written confirmation from one of the transaction's lawyers after closing.

3. Approval from both the buyer and seller involved in the deal.

4. The completion date of the transaction must pass.

5. Consent from the local real estate authorities.

6. Brokerage manager's authorization.

The correct answer is: Written confirmation from one of the transaction's lawyers after closing.

The correct response is based on the established procedures that regulate the handling of funds in real estate transactions, specifically regarding the release of deposits from a trust account for remuneration. Written confirmation from one of the transaction's lawyers after closing ensures that the necessary legal oversight has been obtained. This step is crucial because it provides a verifiable and documented basis for the release of the funds, affirming that any conditions tied to the deposit, such as the completion of the sale and the satisfaction of all parties, have been met. It guards against potential disputes or misunderstandings regarding the distribution of funds post-transaction. In contrast, while verbal consent from a legal practitioner may seem sufficient in informal contexts, it lacks the enforceability and clarity that written confirmation provides. Similarly, approval from both the buyer and seller, though a sound practice in many situations, does not replace the need for formal legal confirmation that protects all parties' interests. The completion date being in the past or consent from local authorities and brokerage managers may relate to different aspects of real estate operations but are not the primary factors for releasing trust account funds for remuneration.