Humber/Ontario Real Estate Course 1 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 1 Exam with tailored quizzes and study materials. Test your knowledge with multiple-choice questions designed to help you excel in your real estate career. Get ready to pass your exam with confidence!

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If a buyer deposits $6,000 in cash one day and an additional $5,000 in cash the next for the same transaction, what must the brokerage do according to FINTRAC?

A large cash transaction report is required.
A large cash transaction report is not necessary.
Deposits under $15,000 don't need reporting.
Sequential deposits are exempt from reporting.
Only a single report for the total amount is required.
The transactions must be combined and reported if over $10,000.

The correct answer is: A large cash transaction report is required.

According to FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) regulations, when a buyer makes multiple cash deposits that are related to the same transaction and the total amount exceeds $10,000 within a 24-hour period, the brokerage is required to file a large cash transaction report. In this case, the buyer deposited $6,000 one day and an additional $5,000 the next day, totaling $11,000 within 24 hours, which triggers the requirement for a large cash transaction report to be submitted to FINTRAC. This reporting helps prevent money laundering and other illicit financial activities. The other options are incorrect because deposits under $15,000 still need to be reported if they exceed $10,000 in a 24-hour period, sequential deposits are not exempt from reporting, and a single report for the total amount is not the appropriate approach for multiple related cash transactions from the same person within a short time frame.