Humber/Ontario Real Estate Course 4 Exam Practice

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What must a salesperson do when preparing an agreement of purchase and sale, and receiving a deposit from a buyer client?

  1. Will need to complete forms in compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

  2. Must obtain the deposit at the time the offer is signed.

  3. Will only need the buyer's signature on the agreement for completion.

  4. Is not permitted to include additional schedules.

  5. Should only provide verbal agreements until all funds are secured.

  6. Should fax a copy of the agreement to all involved parties immediately.

The correct answer is: Will need to complete forms in compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

When preparing an agreement of purchase and sale and receiving a deposit from a buyer client, it is essential for the salesperson to ensure compliance with applicable laws and regulations. Specifically, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act requires brokers and salespeople to conduct due diligence and report any suspicious transactions that may involve money laundering or terrorist financing. This compliance is crucial to maintaining the integrity of the real estate transaction. By understanding and fulfilling these legal obligations, the salesperson helps prevent illegal activities and fosters a more secure real estate market. Adhering to these regulations reflects the responsibility of real estate professionals to protect their clients and the broader financial system. In contrast, the other options present practices that either do not align with legal requirements or are non-standard procedures. For instance, obtaining the deposit at the time the offer is signed may not always be a requirement, as terms can vary. Additionally, an agreement should not rely solely on the buyer's signature for its completeness; other parties' signatures may also be necessary. It is typically standard practice to include additional schedules as necessary, rather than being restricted from doing so. Providing only verbal agreements before securing funds puts all parties at risk and does not reflect the proper process in real estate transactions.

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