Humber/Ontario Real Estate Course 4 Exam Practice

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How often must reconciliation of the real estate trust account be carried out?

Annually
Bi-Annually
Every 3 months
Monthly
Semi-Annually
Weekly

The correct answer is: Every 3 months

The reconciliation of the real estate trust account must be carried out every three months to ensure the accuracy and integrity of the financial records. This process involves comparing the records of the trust account against financial statements and transactions to confirm that all funds are accounted for and properly categorized. Regular reconciliation helps to identify any discrepancies or errors promptly, thereby maintaining compliance with regulatory requirements and protecting the interests of clients. Monthly reconciliation, while thorough, can be more demanding and is not a mandated frequency, whereas less frequent reconciliations, such as annually or bi-annually, may not provide timely insights into account activity, increasing the risk of undetected issues. Maintaining a quarterly schedule balances the need for regular oversight with practical considerations, making it a suitable choice for managing trust accounts effectively.