Humber/Ontario Real Estate Course 4 Exam Practice

Regarding suspicious transaction reporting requirements under FINTRAC, which is NOT typically seen as suspicious?

1. Buyer pays more than asking price and doesn't visit the property

2. Seller sets asking price significantly higher than market value

3. Buyer pays part of the purchase price under the table

4. Buyer purchases multiple rentals quickly without concern for condition

5. Seller is unconcerned about not selling at a high asking price

6. Buyer pays completely in cash without any formal contracts

The correct answer is: Seller sets asking price significantly higher than market value

The statement that a seller setting an asking price significantly higher than market value is not typically seen as suspicious relates to the nature of real estate transactions. Pricing in real estate can be highly subjective and influenced by various factors, such as the seller's personal circumstances, market trends, or even strategic pricing to gauge buyer interest. A seller may have legitimate reasons for setting a high asking price that does not indicate suspicious activity or money laundering intentions. This can include an emotional attachment to the property, lack of accurate market knowledge, or a belief that the property has unique features that justify the premium price. In contrast, the other scenarios involve actions that are often seen as red flags for potential money laundering or other illicit activity. For example, paying more than the asking price without visiting the property can indicate an attempt to obscure the true nature of the transaction, while paying part of the price under the table suggests hidden financial arrangements aimed at avoiding scrutiny. Similarly, purchasing multiple properties quickly without regard for their condition could imply a strategy to launder money or make a rapid profit, and paying entirely in cash without formal contracts is often associated with attempts to evade regulatory oversight.