Humber/Ontario Real Estate Course 4 Exam Practice

Which scenario is NOT an indicator of a suspicious transaction?

1. Client buys multiple properties with little regard

2. Client inspects property only once before purchase

3. Third-party cheque for deposit payment

4. Client wants to submit cash for closing

The correct answer is: Client inspects property only once before purchase

In the context of identifying suspicious transactions in real estate, the scenario where a client inspects a property only once before purchase can be considered more typical behavior rather than an outright indicator of suspicious activity. Many buyers might conduct a single walkthrough if they are confident in their decision or if time constraints are a factor. It's possible for a buyer to feel satisfied with a single inspection, especially in a competitive market where quick decisions are crucial. In contrast, purchasing multiple properties without proper diligence, using a third-party cheque for deposit payment, or opting to pay cash at closing can raise red flags. These actions may suggest unusual financial behavior or a lack of transparency, which could potentially indicate money laundering or other illicit activities. Such scenarios typically warrant further scrutiny to ensure compliance with regulatory standards and to protect all parties involved in the transaction.