Humber/Ontario Real Estate Course 4 Exam Practice

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The agreement of purchase and sale can allow the deposit to be held by which of the following?

The land registry office.
The listing brokerage.
The mortgage lender.
The seller directly.
The seller's lawyer.
The title insurance company.

The correct answer is: The listing brokerage.

In real estate transactions, the agreement of purchase and sale typically specifies where the deposit will be held. The most common place for the deposit to be held is with the listing brokerage. This is the correct answer because the listing brokerage acts as a neutral third party in the transaction and can securely hold the deposit until the deal is either completed or falls through. This helps to protect the interests of both the buyer and the seller involved in the transaction. The other options listed are not typically where the deposit would be held in a real estate transaction: - The land registry office does not typically hold the deposit. - The mortgage lender is not involved in holding the deposit. - The seller directly is not a recommended place for the deposit to be held. - The seller's lawyer may handle other aspects of the transaction but is not usually involved in holding the deposit. - The title insurance company is not usually responsible for holding the deposit. Therefore, among the options provided, the most common and appropriate choice for holding the deposit in a real estate transaction is the listing brokerage.