Humber/Ontario Real Estate Course 4 Exam Practice

An agent receives a cheque for remuneration after sale closure. What is the correct procedure for disbursing the funds?

1. Deposit the cheque in the general account.

2. Deposit two cheques in the commission trust account.

3. Deposit the cheque for balance remuneration in the trust account.

4. Deposit and disburse remuneration from the same account.

5. Deposit the cheque in the commission trust account alone.

6. Transfer the cheque amount to the property owner's account.

The correct answer is: Deposit two cheques in the commission trust account.

The correct procedure for disbursing funds a real estate agent receives for remuneration involves adhering to regulations that govern the handling of commission payments. When an agent receives a cheque related to a sale, it typically needs to be deposited into a designated trust or commission account to ensure compliance with legal and ethical standards. Depositing the cheque for balance remuneration in the commission trust account is appropriate because it reflects the practice of maintaining client funds separately from personal or company funds, promoting transparency and accountability. By placing funds in the trust account, the agent ensures that the money is secured and can be appropriately disbursed when it is time for remuneration. This aligns with the legal requirement for real estate agents to properly manage and account for such funds, which helps protect both the agent and their clients. Proper handling of commission payments also helps avoid any conflicts of interest or potential misuse of funds, thereby fostering trust within the real estate transaction process.