Humber/Ontario Real Estate Course 4 Exam Practice

How should Patty’s Realty handle a buyer deposit received from cooperating agent Susan Solutions?

1. Deposit funds within seven business days from offer acceptance

2. Deposit funds within seven business days from receipt

3. Deposit funds within five business days from offer acceptance

4. Enter funds into personal account and transfer after acceptance

5. Deposit funds within three business days from offer acceptance

6. The deposit must be moved to an investment account within five business days

The correct answer is: Deposit funds within five business days from offer acceptance

The correct approach for handling a buyer deposit is to deposit the funds within seven business days from the point of receipt. In this context, the appropriate practice for realty firms is to take immediate action upon receiving deposit funds, ensuring they are secure and properly accounted for. Depositing the funds promptly serves multiple purposes: it protects the interests of both the buyer and the seller, maintains compliance with the legal requirements governing real estate transactions, and upholds professionalism within the industry. Delaying the deposit process can lead to complications, including potential disputes regarding the authenticity and handling of the funds. The other choices involve either longer timeframes or inappropriate actions, such as entering funds into a personal account, which is not aligned with the regulatory expectations of handling client deposits. The emphasis on timely and proper management of buyer deposits is critical for maintaining trust and integrity within the real estate process.