Humber/Ontario Real Estate Course 3 Exam Practice

Under REBBA, what deposit-related disclosure must be made?

1. Account interest rates must be disclosed to the depositor.

2. 3% minimum interest rate must be paid on all deposits.

3. Deposit date for commission accounts must be disclosed.

4. Individual remuneration to brokerages must be disclosed.

5. Monthly balancing of trust accounts must be disclosed.

6. Trustee information must be disclosed to all parties.

The correct answer is: Account interest rates must be disclosed to the depositor.

The requirement to disclose account interest rates to the depositor is a crucial part of the Real Estate and Business Brokers Act (REBBA) because it ensures transparency and trust in the handling of deposits within real estate transactions. When clients make deposits, they have the right to understand how their money is being managed, including any interest that may accrue. This disclosure is significant because it empowers clients by providing them with important information regarding their financial involvement in the transaction process. It fosters informed decision-making and helps to alleviate any concerns they might have regarding the management of their funds. Understanding the other options is also important as they touch upon various aspects of deposit handling, trust account management, and brokerage remuneration, but they do not directly align with the specific requirement of deposit-related disclosure under REBBA regarding the interest rates. The act primarily aims to uphold accountability and protect the interests of consumers in real estate practices, and knowing the interest rates is a part of that accountability.