Humber/Ontario Real Estate Course 3 Exam Practice

Under FINTRAC guidelines, which scenario is NOT typically seen as suspicious?

1. A buyer agreeing to an over-priced property sight unseen.

2. A seller insisting on a significantly high price without concern for market value.

3. A buyer making bulk property purchases without considering costs.

4. A property sale involving a significant cash transaction post-closing.

5. A buyer attempting to purchase a property in cash without a mortgage.

6. A seller showing unusual urgency and inflexibility regarding selling terms.

The correct answer is: A seller insisting on a significantly high price without concern for market value.

The scenario involving a seller insisting on a significantly high price without concern for market value is typically seen as a normal negotiation tactic in real estate rather than a suspicious activity under FINTRAC guidelines. Sellers may have various reasons for setting a high asking price, which could include personal attachment to the property, market sentiment, or a strategic approach to negotiations. On the other hand, scenarios such as a buyer agreeing to an overpriced property sight unseen or a buyer making bulk property purchases without consideration towards costs can indicate potential money laundering or other financial irregularities. Additionally, cash transactions, particularly significant ones post-closing, can raise red flags as they may suggest an effort to circumvent normal banking channels or regulations. Therefore, the activities that involve a disconnect from standard financial practices are more likely to draw scrutiny, while a seller's pricing strategy, even if it seems naive, does not inherently signal suspicious behavior.