Humber/Ontario Real Estate Course 4 Exam Practice

What is the maximum period allowed for placing funds in a real estate trust account after the acceptance of a counter offer made on a Thursday?

1. Five days from the date the original offer was made.

2. Five days from the counter offer's date.

3. By the following Wednesday.

4. By the following Friday.

The correct answer is: By the following Friday.

The correct answer aligns with regulatory requirements regarding real estate transactions. When a counter offer is accepted, the parties involved must act within a specific timeframe to ensure that funds are placed in the real estate trust account. If a counter offer is accepted on a Thursday, the maximum period allowed to place funds in the trust account is until the following Friday. This timeframe allows sufficient time for the parties to process the agreement and make the necessary arrangements to deposit the funds, reflecting a standard practice in real estate transactions. In this context, the other options do not accurately reflect the required timeline for depositing funds. For instance, stating a period based on the original offer or only up to the following Wednesday would not comply with the standard procedures, which account for the full week from the date of acceptance of the counter offer. Thus, understanding the rules in place shows why the maximum period extends to the following Friday.