Humber/Ontario Real Estate Course 3 Exam Practice

What should a salesperson do if a buyer requests that the deposit not be placed in the real estate trust account for seven days due to insufficient funds?

1. Delay processing the paperwork, including the deposit, for seven days

2. Ignore regulatory requirements and delay depositing funds received

3. Advise the brokerage of the issue and seek guidance from the broker of record or manager

4. Consider the cheque cashing issue irrelevant

5. Deposit the funds without informing brokerage

6. Inform the buyer to find funds immediately

The correct answer is: Advise the brokerage of the issue and seek guidance from the broker of record or manager

The correct choice involves advising the brokerage about the situation and seeking guidance from the broker of record or manager. This approach ensures that the salesperson adheres to regulatory requirements while handling the situation appropriately. By consulting with the broker of record, the salesperson can get professional guidance that takes into account legal and ethical considerations, including the responsibilities concerning trust accounts. The broker can advise on the proper handling of deposits and any additional steps that may be necessary to protect both the buyer's and the brokerage's interests. Addressing issues around a buyer's inability to provide an immediate deposit is important, and working collaboratively with the brokerage helps maintain compliance with industry norms and regulations. Taking this route upholds the integrity of the transaction while also looking out for the buyer's needs in a responsible manner.