Humber/Ontario Real Estate Course 4 Exam Practice

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What does the deposit clause in a purchase agreement specify regarding deposit time frame upon acceptance?

The deposit must be submitted within 24 hours of acceptance.
Allows payments via electronic fund transfer.
Places the deposit in an interest-earning trust account.
States the deposit must be held by the listing broker.
Specifies that only cash deposits are acceptable.
Dictates the need for immediate deposit conversion.

The correct answer is: Allows payments via electronic fund transfer.

The deposit clause in a purchase agreement outlines the methods through which the buyer can submit their deposit after the agreement is accepted. By allowing payments via electronic fund transfer, the clause adds flexibility for the buyer, recognizing the convenience and speed that electronic payments offer in real estate transactions. This modern approach can facilitate quicker processing times for deposits, which is important in a competitive real estate market. When examining the context of the other options, they do not accurately reflect the broader purpose of the deposit clause. Some may restrict the payment method or impose unnecessary conditions that do not align with common practices. A focus on electronic fund transfers showcases an understanding of evolving payment methods and aligns with what many buyers and sellers expect in today’s digital age.