Humber/Ontario Real Estate Course 3 Exam Practice

Which of the following is NOT an indicator of suspicious transactions?

1. A client prefers using cash for real estate closing costs

2. A client purchasing a property after a single inspection

3. A client paying the deposit with a cheque from another party

4. A client acquiring multiple properties without detailed selection criteria

5. A client insisting on anonymity despite significant transaction size

6. A client makes multiple high-value transactions within a short period

The correct answer is: A client purchasing a property after a single inspection

The correct choice identifies a scenario that does not inherently raise red flags regarding suspicious transactions. While purchasing a property after a single inspection may be deemed unwise by some, it does not in itself indicate any illicit conduct. Buyers often make decisions based on various factors, including urgency or emotional appeal; thus, this action could stem from normal market behavior rather than anything suspicious. Other scenarios, such as a client preferring cash for closing costs, paying deposits with a cheque from another party, or acquiring multiple properties without clear criteria, tend to suggest potential attempts to obscure the source of funds or the true nature of the transactions. Each of these actions could raise questions about the legitimacy of the funds or the buyer's intentions. Similarly, insisting on anonymity while engaging in high-value transactions or making numerous high-value purchases in a short time frame are patterns often associated with money laundering or other nefarious activities, which is why they are seen as potential indicators of suspicious transactions.