Humber/Ontario Real Estate Course 3 Exam Practice

What is the broker of record's responsibility regarding trust accounts in brokerage operations?

1. Ensure a quarterly trust account reconciliation

2. Maintain a trust ledger of all trust transactions

3. Allow the brokerage accountant to disburse trust funds

4. Direct trust interest payments to the brokerage

5. Submit a yearly financial audit to REBBA

6. Supervise all staff handling trust funds

The correct answer is: Maintain a trust ledger of all trust transactions

The responsibility of the broker of record regarding trust accounts in brokerage operations is to maintain a trust ledger of all trust transactions. This ledger serves as a crucial tool for record-keeping, ensuring that all transactions involving trust funds are accurately documented. It provides a detailed account of all deposits and disbursements, which is essential for transparency and compliance with regulatory requirements. Maintaining a trust ledger is vital because it allows for easy tracking and reconciliation of trust accounts, helping to prevent errors or mismanagement of funds. It is the broker of record's duty to ensure that this ledger is kept up to date and reflects all transactions promptly. This not only safeguards the trust funds but also builds trust with clients and regulatory bodies overseeing the brokerage's operations. While other options may represent necessary aspects of managing trust accounts, the primary responsibility involves the meticulous maintenance of the trust ledger as a central record.