Humber/Ontario Real Estate Course 4 Exam Practice

If a buyer requests that their deposit not be placed in the real estate trust account for a specific period due to insufficient funds, what should the salesperson do?

1. Advised the brokerage of this issue and seek guidance

2. Delay processing the paperwork for seven days

3. Deem the cheque cashing issue irrelevant

4. Ignore the issue and proceed

5. Process the cheque regardless of instructions

6. Wait until the funds are available before depositing

The correct answer is: Advised the brokerage of this issue and seek guidance

When a buyer requests that their deposit not be placed in the real estate trust account for a specific period due to insufficient funds, the appropriate action for the salesperson is to advise the brokerage of this issue and seek guidance. This approach ensures that all actions taken are in compliance with legal and ethical standards governing real estate transactions. By consulting with the brokerage, the salesperson can ensure that they are following the correct procedures and protecting the interests of both the buyer and the brokerage. This also minimizes the risk of potential issues that could arise from mishandling the trust account or deposit. The other options do not align with best practices in real estate. Delaying processing the paperwork, deeming the cheque cashing issue irrelevant, ignoring the issue, or processing the cheque against given instructions could lead to complications such as breach of trust or violations of regulatory requirements. It is crucial to maintain transparency and follow proper protocols, especially when it comes to handling funds and trust accounts in a real estate transaction.