Humber/Ontario Real Estate Course 4 Exam Practice

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How must a real estate brokerage handle the deposit period after receiving buyer funds?

  1. Apply a universal five-day rule from the offer's date.

  2. Implement a five-day rule starting from deposit receipt.

  3. Cut down the deposit period by any delays from the buyer.

  4. Use different periods based on residential or commercial properties.

  5. Immediately inform all parties of deposit receipt.

  6. Always deposit funds within 48 hours regardless of type.

The correct answer is: Implement a five-day rule starting from deposit receipt.

The correct answer emphasizes the requirement for the brokerage to implement a five-day rule starting from the receipt of the deposit. This is crucial because it acknowledges the importance of accurately tracking when the funds are received, ensuring compliance with regulations that dictate when deposits must be handled. Beginning the deposit period from the moment the brokerage receives buyer funds allows for clarity in the transaction process. This approach ensures that all parties are aware of their rights and obligations regarding the timelines involved with the deposit. In Ontario, there is a regulatory framework that stipulates timelines for handling deposits to protect both buyers and sellers. By starting the countdown from the date of receipt, brokerages can provide a consistent practice across all transactions, reducing ambiguity. While other options reflect concepts regarding deposit handling, they do not align with the regulatory requirements set out for real estate transactions in Ontario. For instance, a universal five-day rule from the offer's date does not consider the actual receipt of the funds, which could lead to confusion and potential non-compliance. Similarly, reducing the deposit period based on buyer delays would not be in line with fair practices, and using different periods based on the property type may introduce unnecessary complexity and inconsistency. Immediate notification of deposit receipt, while important, does not necessarily

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