Humber/Ontario Real Estate Course 4 Exam Practice

If funds are deposited into a brokerage's trust account, what record must be completed?

1. Receipt of funds record

2. Transaction record

3. Deposit receipt

4. Funds transfer document

5. Account verification form

6. Trust account statement

The correct answer is: Receipt of funds record

When funds are deposited into a brokerage's trust account, it is essential to complete a Receipt of Funds record. This document serves as a formal acknowledgement that the funds have been received and provides a detailed account of the transaction, including pertinent information such as the date of receipt, the amount, the source of the funds, and the purpose for which the funds were received. Maintaining these detailed records is a vital part of ensuring compliance with real estate regulations and protecting the interests of all parties involved. A properly filled Receipt of Funds record helps maintain transparency and accountability within the brokerage's financial practices, especially given that trust funds must be handled with utmost care and in accordance with legal guidelines. While other documents may serve specific purposes within the financial processes of a brokerage, the key aspect of acknowledging the receipt of funds directly is best captured through a Receipt of Funds record. Other documents, such as transaction records or trust account statements, may not sufficiently fulfill the specific requirement to confirm the deposit of funds into the trust account.