Under the Real Estate and Business Brokers Act, what must be disclosed if trust funds are held in an interest-bearing account?

Get ready for the Ontario real estate exam with our 2025 practice test and study guide. Learn how to pass Course 1 at Humber and get your real estate license.

The requirement under the Real Estate and Business Brokers Act mandates that if trust funds are held in an interest-bearing account, the rate of interest paid must be disclosed to the person for whom the deposit is held. This transparency is important for maintaining trust and ensuring that clients are aware of the financial benefits associated with their funds. By informing clients about the interest rate, brokers help ensure that clients understand the potential returns on their deposits, which is a crucial aspect of fiduciary duty.

While other choices may touch on relevant disclosures, they do not directly address the specific requirement regarding the interest rate on trust funds. For example, a minimum interest rate or remuneration details, while important in their own contexts, are not mandated disclosures in this specific situation concerning interest-bearing accounts. This reinforces the significance of accurate and clear communication regarding interest earnings for clients' trust funds.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy