Humber/Ontario Real Estate Course 3 Exam Practice

If Buyer Graham deposits $30,000 for 1821 Western Avenue, the following must be disclosed if placed in a variable interest account:

1. Any interest rate changes within the first year

2. Brokerage policies on interest payments to Graham

3. Current interest rate being applied to the account

4. If Graham agrees to a future interest rate increase

5. The commission fee structure agreed upon

6. Transaction date of deposit into the brokerage’s account

The correct answer is: Current interest rate being applied to the account

The correct answer is the current interest rate being applied to the account. Disclosure of the current interest rate is essential for transparency, as it directly impacts the amount of interest that Buyer Graham will earn on the deposit. Buyers need this information to understand how their funds are being managed and how much interest they can expect to receive over time. Providing the current interest rate ensures that Graham is adequately informed and can make informed decisions regarding his investment. It builds trust in the brokerage's handling of his funds. While other options may involve relevant information, they do not address the specific requirement for disclosing the interest rate being currently applied, which is fundamental to the financial agreement involved in placing the deposit in a variable interest account. Knowing the current rate allows Graham to assess the performance of his investment accurately.