Humber/Ontario Real Estate Course 3 Exam Practice

Which statement regarding the trade record sheet is correct?

1. A trade record sheet must be prepared for every trade involving the brokerage.

2. Only prepared if a deposit is received.

3. Prepared by listing and co-operating brokerages together.

4. The same form is used province-wide.

The correct answer is: A trade record sheet must be prepared for every trade involving the brokerage.

A trade record sheet must be prepared for every trade involving the brokerage because it is a crucial document for record-keeping purposes in real estate transactions. It helps in maintaining a comprehensive record of all the details related to the trade, including the property information, buyer and seller details, financial aspects of the transaction, and any other relevant information. By having a trade record sheet for every trade, the brokerage can ensure transparency, accuracy, and compliance with regulatory requirements. Option B is incorrect because a trade record sheet is not only prepared if a deposit is received; it is essential for documenting all aspects of a real estate transaction, not just the financial components. Option C is incorrect because a trade record sheet is typically prepared separately for the listing brokerage and the cooperating brokerage to maintain independent records and accountability for each party involved in the transaction. Option D is incorrect because although the format and content of the trade record sheet may vary slightly between different regions or brokerages, there is no standardized province-wide form for the trade record sheet in Ontario.