A real estate brokerage discovers an error in their trust account reconciliation showing a shortage of $5,000. What is the most appropriate immediate action under Ontario's regulations?
Correct Answer
D) Immediately notify the provincial regulator and take corrective action
O. Reg. 579/05 s. 14 says that if a brokerage determines there is a shortfall in its trust account, it shall immediately notify the registrar of the shortfall and deposit sufficient funds in the account to eliminate it. Notifying the registrar under TRESA and restoring the $5,000 are the corrective steps the regulation requires.
Why This Is the Correct Answer
This answer mirrors O. Reg. 579/05 s. 14: the brokerage must immediately notify the registrar and take corrective action by depositing enough funds to eliminate the shortfall. Both steps happen at once, not after an internal wait.
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During its monthly reconciliation, an Alberta brokerage determines that its trust account is short by $5,000. Under the RECA Rules, what must the brokerage do?