Question

In accordance with REBBA regulations concerning unclaimed deposits in a real estate trust account, what are the respective timelines for forwarding funds to RECO in situations where the recipient is unlocatable or a dispute arises?

A) Unclaimed for 1 year in unlocatable cases and 2 years in dispute cases.
B) Unclaimed for 2 years in unlocatable cases and 1 year in dispute cases.
C) Unclaimed for 2 years in both unlocatable and dispute cases.
D) Unclaimed for 1 year in both unlocatable and dispute cases, except if the fund is less than $25.

Answer 1

Under REBBA regulations, unclaimed deposits in a real estate trust account must be forwarded to RECO if unclaimed for two years, whether the recipient is unlocatable or in the event of a dispute.

Step-by-step explanation:

In accordance with the Real Estate and Business Brokers Act (REBBA), specifically regarding unclaimed deposits in a real estate trust account, the correct timelines for forwarding funds to the Real Estate Council of Ontario (RECO) are different depending on whether the recipient is unlocatable or in the event of a dispute. If the recipient of the funds is unlocatable, the funds should be forwarded to RECO if they remain unclaimed for two years. On the other hand, in situations where a dispute arises over the entitlement to the funds, the funds should be forwarded to RECO after they have been unclaimed for two years as well. Therefore, the correct answer is C) Unclaimed for 2 years in both unlocatable and dispute cases.