Humber/Ontario Real Estate Course 4 Exam Practice

How should a deposit received by ABC Realty Inc. from XYZ Real Estate Ltd. be handled?

1. The deposit should be placed in the trust account within three business days

2. The deposit should be placed in the trust account within five business days from receipt.

3. The deposit receipt period starts from the date the offer is accepted and must be deposited in seven business days

4. The deposit should be deposited within five business days from the offer acceptance date

5. The deposit must be placed in the trust account within seven business days from the offer acceptance date

6. The deposit should be transferred to the client’s account within three business days

The correct answer is: The deposit should be placed in the trust account within five business days from receipt.

In Ontario, real estate brokers and salespersons are responsible for handling deposits received for real estate transactions ethically and in compliance with regulatory requirements. The correct answer is B because the deposit should be placed in the trust account within five business days from the receipt of the deposit. This ensures that the funds are safeguarded in a trust account until the completion or termination of the real estate transaction. Option A is incorrect because the requirement is to place the deposit in the trust account within five business days, not three. Option C is incorrect because the deposit receipt period starting from the date the offer is accepted is seven business days, while the correct timeline is five business days. Option D is incorrect as it mentions depositing within five business days from the offer acceptance date, which might not align with when the deposit was actually received. Option E is also incorrect as it states that the deposit must be placed in the trust account within seven business days from the offer acceptance date, which is not in line with the regulatory requirement of five business days. Option F is incorrect because the deposit should be placed in the trust account, not transferred to the client's account, within the specified timeline of five business days. In summary, the correct protocol is to place the deposit received in