Humber/Ontario Real Estate Course 4 Exam Practice

What is required when a trade record sheet is prepared for a given trade?

1. A trade number is assigned but its significance to brokerage operations is limited.

2. A trade number is assigned only if a deposit is involved.

3. The broker of record must sign the trade record sheet along with the involved salespersons.

4. The trade record sheet is filed after the involved salesperson or salespersons sign it on behalf of the brokerage.

The correct answer is: The broker of record must sign the trade record sheet along with the involved salespersons.

The correct choice highlights the importance of proper documentation and accountability in real estate transactions. When a trade record sheet is prepared, having the broker of record sign it, in addition to the involved salespersons, ensures that there is a clear record of the transaction and that it has been acknowledged by the responsible parties. This signature serves as confirmation that the broker has reviewed and approved the details of the trade, reinforcing the accountability of everyone involved in the transaction according to regulatory and ethical standards. The other answers do not fully capture the requirements for a trade record sheet. For instance, while assigning a trade number is a common practice, it does not carry the same weight of accountability as the signatures of the broker and salespersons. Additionally, the trade number assignment does not hinge on whether a deposit was involved; it is a standardized part of the record-keeping process for all trades. Filing the record sheet only after a signature could suggest procedural delays or lack of oversight if done without the broker's acknowledgement. Therefore, the emphasis on having both the broker and salespersons sign underscores the necessity of accountability and due diligence in real estate transactions.