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.

What is an accurate statement regarding FINTRAC compliance for real estate brokerages?

  1. Brokerages with fewer than 10 employees do not need a compliance officer.

  2. An identification record is necessary for each transaction, with limited exceptions.

  3. Identification verification only applies to clients, not customers.

  4. Identification verification is unnecessary when the seller is a corporation.

  5. Brokerages do not need to report cash transactions under $10,000.

  6. Only brokerages involved in commercial real estate need to comply with FINTRAC.

The correct answer is: An identification record is necessary for each transaction, with limited exceptions.

The statement about the necessity of an identification record for each transaction, with limited exceptions, is accurate concerning FINTRAC compliance for real estate brokerages. According to Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act, real estate brokerages are required to verify the identity of clients and maintain comprehensive records of transactions, which includes gathering and keeping identification records. This requirement helps facilitate the reporting of suspicious activities and ensures that brokerages comply with anti-money laundering regulations. In contrast, other options suggest various inaccuracies. For instance, compliance officers are essential for all brokerages, regardless of the number of employees, to ensure adherence to FINTRAC regulations. Identification verification applies to both clients and customers, reinforcing the need for thorough diligence. Even when dealing with corporations, verification processes are still mandatory. Moreover, brokerages must report all cash transactions of $10,000 or more, as there are strict regulations regarding cash transactions to prevent money laundering. Finally, compliance with FINTRAC is required for all brokerages involved in real estate transactions, whether residential or commercial. Therefore, the requirement for identification records is crucial for maintaining compliance with FINTRAC standards.

More Questions Like This