Humber/Ontario Real Estate Course 4 Exam Practice

What should a buyer ensure regarding deposits in a brokerage trust account?

1. Must verify the date deposit was placed in trust

2. Discuss interest rates for variable interest-bearing accounts

3. Confirm both buyer and seller disclosure of deposit

4. Review brokerage’s trust account balance

5. Ensure deposit placement in the interest-bearing account

6. Obtain receipt and trust account statements regularly

The correct answer is: Discuss interest rates for variable interest-bearing accounts

The correct choice emphasizes the importance of discussing interest rates for variable interest-bearing accounts when dealing with deposits in a brokerage trust account. This aspect is vital because buyers should understand how their deposits will generate interest, which can impact the overall financial return from their invested money. Interest-bearing trust accounts offer a potential benefit for the buyer, as the deposit can earn interest while held in trust, rather than sitting idle. During discussions with the brokerage, it’s crucial for the buyer to understand the different types of accounts available, their respective interest rates, and how frequently the interest is compounded and disbursed. This knowledge empowers the buyer to make informed decisions regarding the handling of their funds. The other choices may highlight valid concerns regarding deposits in a brokerage trust account, but they do not focus as directly on the financial implications and benefits associated with the interest-bearing nature of these accounts. Understanding the interest rates could directly affect the buyer’s financial planning and expectations, which is why that discussion is significant.