Humber/Ontario Real Estate Course 4 Exam Practice

What must be done immediately upon discovering a discrepancy in the real estate trust account due to an incorrectly issued cheque?

1. Deposit an equivalent amount to cover the shortfall at once.

2. Identify the staff member responsible for the error and take corrective action.

3. Notify the relevant regulatory body of the discrepancy.

4. Wait until the next month-end reconciliation to address the shortfall.

5. Inform all stakeholders affected by the trust account discrepancy.

6. Audit all prior transactions to identify any additional discrepancies.

The correct answer is: Deposit an equivalent amount to cover the shortfall at once.

Upon discovering a discrepancy in the real estate trust account due to an incorrectly issued cheque, the most appropriate immediate action is to deposit an equivalent amount to cover the shortfall at once. This step ensures that the trust account remains in compliance with legal and ethical standards regarding the handling of client funds. Maintaining accurate and complete records is paramount in real estate transactions, and restoring the balance without delay is crucial to prevent any potential financial harm to clients or regulatory repercussions. Addressing the shortfall immediately demonstrates accountability and prioritizes the integrity of the trust account. It allows for an immediate remedy to the situation, thereby protecting clients' interests and maintaining trust in the real estate brokerage's operations. Other options, such as identifying the responsible staff member or notifying a regulatory body, may also be necessary steps to address the situation, but they do not provide an immediate solution to the financial discrepancy and might delay rectifying the trust account balance. Waiting for the next month-end reconciliation is not advisable, as it could lead to further complications or implications for transactions and clients during that time.