Humber/Ontario Real Estate Course 3 Exam Practice

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Humber/Ontario Real Estate Course 3 Exam. Study with challenging questions and detailed explanations to enhance your understanding. Get ready to excel in your exam!

Start Multiple Choice Practice Test
Start Flash Cards

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

If a deposit is placed in an interest-bearing trust account, what must be disclosed?

  1. Agreed interest rates for successive terms

  2. Details excluding account interest specifics

  3. Interest rate for the initial period

  4. Interest terms but not the rates

  5. Policy changes communicated post-facto

  6. Timing of transactions related to the account

The correct answer is: Interest rate for the initial period

When a deposit is placed in an interest-bearing trust account, it is essential to disclose the interest rate for the initial period. This disclosure is crucial as it provides transparency to the client regarding how their funds will be handled and the potential earnings they can expect from the account during that initial term. Understanding the interest rate for the initial period allows clients to make informed decisions about their investments and financial planning. In real estate transactions, especially those involving trust accounts, fostering trust and clarity between the agent and the client is paramount. Disclosing the initial interest rate adheres to legal and ethical standards in the industry, ensuring that clients are not kept in the dark about the financial aspects of their deposits.

More Questions Like This