Humber/Ontario Real Estate Course 4 Exam Practice

When can a brokerage open multiple real estate trust accounts?

1. If it has multiple salespeople, one account per salesperson.

2. At any time, provided all accounts are in the same branch and reconciled monthly.

3. After the Registrar’s authorization.

4. When it deals with both residential and commercial properties.

5. As soon as it begins operations in multiple regions.

6. With just the managing broker's approval.

The correct answer is: When it deals with both residential and commercial properties.

The correct answer indicates that a brokerage is permitted to open multiple real estate trust accounts when it deals with both residential and commercial properties. This aligns with regulatory frameworks that recognize the distinct nature of transactions in different sectors, which may necessitate the segregation of funds to ensure clarity and compliance with trust account management. When a brokerage handles both types of properties, it is reasonable to have separate trust accounts to track funds earmarked for residential transactions distinctly from those for commercial transactions. This helps prevent confusion and potential mismanagement of client funds, ensuring that the brokerage adheres to legal and ethical obligations in handling trust money. The other possible answers do not align with regulatory requirements or best practices. For instance, having multiple accounts just based on the number of salespeople or the region without regard to transaction type doesn't ensure proper oversight or accountability for funds. The requirement for Registrar’s authorization speaks to the need for proper oversight, which may not be directly related to property types. Thus, operating accounts based merely on internal decisions or arrangements without regulatory alignment may increase risk and compliance issues.