Humber/Ontario Real Estate Course 2 Exam Practice

What is a mandatary in the context of real estate transactions?

1. A mandatory form to be used in all transactions.

2. An agent used for FINTRAC identification verification.

3. A brokerage employee who ensures compliance with privacy laws.

4. A form developed by organized real estate associations.

5. A standard checklist used by all brokerages.

6. A required role for overseeing large property transactions.

The correct answer is: An agent used for FINTRAC identification verification.

In the context of real estate transactions, a mandatary is an agent used for FINTRAC identification verification. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is Canada's financial intelligence unit that identifies money laundering, terrorist financing, and other threats to the integrity of Canada's financial system. Mandataries are individuals authorized by FINTRAC to verify the identity of clients for the purpose of complying with anti-money laundering and anti-terrorist financing regulations in real estate transactions. The other options are incorrect because they do not accurately define a mandatary. A, D, and E do not specifically relate to the role of a mandatary in real estate transactions. C describes a different role related to ensuring compliance with privacy laws, and F does not accurately depict the responsibilities of a mandatary.