Humber/Ontario Real Estate Course 4 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 4 Exam with our comprehensive practice tests. Study with flashcards and multiple-choice questions, complete with hints and detailed explanations. Achieve success on your real estate licensing journey!

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When can Broker of Record Prescott release a deposit from the brokerage's trust account to pay a salesperson's remuneration?

As soon as the transaction is reported to the real estate board.
Once written confirmation from one of the lawyers that the sale has closed is obtained.
After receiving verbal permission from either party's lawyer.
Immediately upon the salesperson's request if delayed beyond 30 days.
When the salesperson confirms receipt of the buyer's full payment.
Only after the completion date of the transaction has passed.

The correct answer is: Once written confirmation from one of the lawyers that the sale has closed is obtained.

The most effective time for the Broker of Record to release a deposit from the brokerage's trust account to pay the salesperson's remuneration is once written confirmation from one of the lawyers that the sale has closed is obtained. This is essential because the release of funds is closely tied to the completion and legal closure of the transaction. At this point, all contractual obligations regarding the sale have been fulfilled, ensuring that the bank or funds held in trust can now be safely allocated. This confirmation acts as a safeguard, demonstrating that any potential issues surrounding the closing process have been resolved. By waiting for a formal written confirmation from legal counsel, the brokerage protects itself from potential claims or disputes regarding the transaction that could arise later if funds were released prematurely. The other options do not provide the same level of certainty or legal backing. For instance, simply reporting to the real estate board does not confirm the actual closure of the sale, while verbal permissions or requests from parties involved do not carry the same weight as written confirmation. Therefore, only the completion of the transaction with legal confirmation ensures that the funds can be released without further risk.