Humber/Ontario Real Estate Course 4 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 4 Exam. Test your knowledge with quizzes and gain valuable insights into real estate concepts, regulations, and practices essential for your success in the industry.

Practice this question and more.

Salesperson Chen receives a $15,000 deposit from a buyer in the form of cash. He should:

Report the deposit to FINTRAC if the funds were received through bank draft
Report the deposit to FINTRAC as it was received in cash
Report to FINTRAC if it was received by certified cheque from a public body
Report the deposit as suspicious if received through wire transfer
Not report the deposit regardless of the form of payment
Immediately return the deposit to the buyer

The correct answer is: Report the deposit to FINTRAC as it was received in cash

The correct choice is to report the deposit to FINTRAC as it was received in cash. Under Canadian regulations, specifically the requirements set by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), any cash transaction of $10,000 or more must be reported. This measure is in place to help prevent money laundering and other financial crimes. In the case of cash transactions, including those involving deposits on real estate, the agency mandates that such transactions be documented and reported. This is crucial for the accountability and traceability of significant cash movements in order to uphold financial system integrity. Therefore, since the deposit amount of $15,000 exceeds the threshold, it requires reporting to FINTRAC.