Humber/Ontario Real Estate Course 3 Exam Practice

Which of the following is true about trade record sheets?

1. They detail transactions but exclude consecutive numbering.

2. The term 'transaction file' is synonymous with 'trade record sheet'.

3. They consecutively assign trade numbers.

4. Real estate remuneration on these forms is exempt from harmonized sales tax.

5. The FINTRAC receipt of funds requirement is met by these forms, without additional documentation.

6. Requirements of transaction forms and trade records are the same.

The correct answer is: They consecutively assign trade numbers.

The choice regarding the consecutive assignment of trade numbers is correct because trade record sheets are designed to organize and track real estate transactions systematically. This includes the practice of assigning a unique and sequential trade number to each transaction to enhance accountability and ensure thorough record-keeping. This numbering method allows real estate professionals to easily reference specific transactions, aids in maintaining a clear audit trail, and helps ensure that all transactions are appropriately documented. It also aligns with standard practices in the industry for managing transaction data effectively. The other options do not accurately represent the characteristics or functions of trade record sheets. For example, not all trade record sheets are synonymous with transaction files; they serve distinct purposes. Additionally, real estate remuneration may be subject to harmonized sales tax, contrary to what one option suggests. Another consideration is that while trade record sheets have certain documentation requirements, they do not fulfill all regulatory conditions on their own. Therefore, understanding the procedural nuances around trade record sheets is crucial for compliance and effective real estate management.