Humber/Ontario Real Estate Course 4 Exam Practice

Besides electronic funds transfer, what is another requirement stated in a deposit clause of a purchase agreement?

1. The deposit must be within 24 hours of acceptance.

2. It should be held in an interest-bearing account.

3. The deposit needs to be with the listing brokerage.

4. Payment should be processed immediately.

5. Deposit verification steps are mandatory.

6. Requires providing a bank draft within acceptance period.

The correct answer is: The deposit must be within 24 hours of acceptance.

The requirement that the deposit must be made within a specified time frame after the acceptance of the purchase agreement is crucial to ensuring that both parties are committed to the transaction without unnecessary delays. This timeframe often reflects industry standards and helps maintain the momentum of the sale process. A timely deposit signals to the seller that the buyer is serious about fulfilling their contractual obligations and also protects the buyer's interests by locking in the terms of the agreement. By ensuring that the deposit is made promptly, it demonstrates professionalism and contributes to a smooth transaction process. The other options may include relevant aspects of deposit handling, but the requirement for the deposit to occur within a specific time after acceptance directly addresses the urgency and commitment needed in real estate dealings, which is why it is often emphasized in deposit clauses.