Humber/Ontario Real Estate Course 3 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 3 Exam with our comprehensive quiz. Dive into engaging practice questions that will enhance your understanding and readiness for the test. Elevate your confidence and get ready to ace your exam!

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How should ABC Realty Inc. handle a deposit received from XYZ Real Estate Limited?

ABC Realty Inc. has seven business days from the receipt of deposit from XYZ Real Estate Limited to place those funds in its real estate trust account.
ABC Realty Inc. has five business days from the receipt of deposit from XYZ Real Estate Limited to place those funds in its real estate trust account.
ABC Realty Inc. has seven business days from the date the offer is accepted to deposit the funds in its real estate trust account.
ABC Realty Inc. has five business days from the date the offer is accepted to deposit the funds in its real estate trust account.
ABC Realty Inc. has three business days from the receipt of funds to place them in its trust account.
ABC Realty Inc. must place the deposit in a separate account as soon as the funds are received.

The correct answer is: ABC Realty Inc. has five business days from the receipt of deposit from XYZ Real Estate Limited to place those funds in its real estate trust account.

The correct response highlights a crucial aspect of handling deposits in real estate transactions. ABC Realty Inc. must adhere to the regulations that specify the timeline for depositing funds received from clients or other stakeholders. The requirement is that the deposit must be placed into a real estate trust account within five business days from the receipt of the deposit. This policy is in place to protect the funds held in trust and ensures a reliable and transparent handling of clients' money. It also reflects the legal obligation of real estate brokerages to manage client deposits responsibly and in accordance with industry regulations. Adhering to this timeline helps maintain client trust and upholds the brokerage's professional standards. Understanding this timeline is essential for real estate professionals, as failing to comply could lead to regulatory consequences or undermine trust with clients. The other options do mention varying timelines, but only the five business day rule aligns with the correct legal requirement in this context.