Humber/Ontario Real Estate Course 1 Exam Practice

In a brokerage's real estate trust account, who is entitled to know the interest rate earned on a deposit?

1. Brokerage's accountant.

2. Government tax authority.

3. Mortgage lender.

4. Person for whom the deposit is made.

5. Real estate regulator.

6. Selling agent only.

The correct answer is: Person for whom the deposit is made.

The person for whom the deposit is made has the right to know the interest rate earned on a deposit in a brokerage's real estate trust account. This is because the interest earned on the funds is considered part of their money, and transparency regarding the financial details of the funds they placed in trust is essential for maintaining trust and accountability between the brokerage and the client. While other parties, such as the brokerage's accountant, might have a need to know for bookkeeping purposes, they do not have the same entitlement to the information as the depositor. Similarly, government tax authorities and mortgage lenders are concerned with tax and lending regulations, respectively, but they do not directly relate to the specific interests of the person whose deposit is involved. A real estate regulator oversees the compliance of ethical and legal standards but does not individually require this information. Lastly, the selling agent's role does not inherently include a claim to this specific financial information regarding the deposit.