Humber/Ontario Real Estate Course 3 Exam Practice

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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!

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When is a 'receipt of funds record' necessary in a real estate transaction?

Only when individual cheques exceed $10,000.
When any deposit is placed into a brokerage’s trust account.
Only for cash transactions over $1,000.
For every financial interaction involving property sale.

The correct answer is: When any deposit is placed into a brokerage’s trust account.

The correct choice emphasizes that a receipt of funds record is essential whenever a deposit is made into a brokerage’s trust account. This practice is crucial as it ensures transparency and accountability in the handling of clients' funds. When funds are deposited, especially in a real estate transaction, the brokerage must maintain precise records to track all financial movements. This not only protects the client's money but also complies with regulatory requirements intended to safeguard trust accounts. While some other options might appear valid at a glance, they are more limited in scope. For instance, having a receipt solely for cheques over $10,000 or cash transactions above $1,000 does not encompass the full breadth of transactions that take place. Additionally, requiring a receipt for every financial interaction would be excessive; while all significant transactions should be documented, routine business expenses may not warrant such formal receipts. Thus, the outlined option regarding deposits into trust accounts effectively encapsulates the primary occasion that necessitates a receipt of funds record in real estate transactions.