Humber/Ontario Real Estate Course 4 Exam Practice

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What should be completed when a buyer signs an agreement and provides a deposit?

  1. Forms in compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

  2. Documents confirming compliance with local tenancy laws.

  3. Papers related to the Real Estate Security Act.

  4. Financial disclosure forms under the Homebuyer Protection Act.

  5. Statements verifying the authenticity of the deposit payment.

  6. Compliance forms under the Brokerage Financial Conduct Act.

The correct answer is: Forms in compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

The correct choice is the requirement for forms in compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. When a buyer signs an agreement and provides a deposit, there is a crucial need for real estate professionals to ensure that they are adhering to anti-money laundering regulations. This involves collecting information that helps to establish the legitimacy of the source of funds. This compliance is vital not only for legal reasons but also for maintaining the integrity of the real estate market and protecting against financial crimes. The other options focus on different areas of law and regulation that, while important, do not directly address the immediate requirement tied to the deposit transaction. For example, compliance with local tenancy laws pertains specifically to rental agreements rather than outright property purchases. The Real Estate Security Act deals with aspects of secured transactions in real estate finance, while the Homebuyer Protection Act and the Brokerage Financial Conduct Act address separate regulatory requirements that do not apply at the moment the buyer is placing a deposit upon signing an agreement.

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