Humber/Ontario Real Estate Course 4 Exam Practice

Which of the following is correct regarding the FINTRAC receipt of funds record involving a buyer's deposit?

1. The receipt of funds is always prepared and kept by the listing brokerage.

2. The receipt of funds is required if the funds are paid to a builder as part of a new home agreement of purchase and sale.

3. The receipt of funds is required if the funds are received directly from a bank or credit union.

4. The receipt of funds can involve a deposit paid by a client whose identity is verified using the dual process method.

The correct answer is: The receipt of funds can involve a deposit paid by a client whose identity is verified using the dual process method.

The statement regarding the FINTRAC receipt of funds record involving a buyer's deposit is accurate as it addresses the verification process for a client making a deposit. The dual process method is a recognized approach for identifying clients, ensuring that their identity is confirmed through two different forms of identification. This verification process is crucial for compliance with anti-money laundering regulations under FINTRAC, which mandates thorough identification of all clients involved in real estate transactions. By mentioning that the receipt of funds can involve a deposit from a client whose identity is verified using this method, it reflects an understanding of the regulatory requirements that real estate professionals must adhere to when handling financial transactions. The emphasis on proper identification considers the risks involved with large transactions and aims to prevent illegal activities, aligning with FINTRAC’s goals. The other choices, while presenting relevant scenarios, do not accurately detail the necessary circumstances surrounding the receipt of funds and verification processes as clearly as the selected answer.