Humber/Ontario Real Estate Course 4 Exam Practice

When Salesperson Malouf, who works for a co-operating brokerage, prepares an offer with sequential deposits for a buyer client, which statement is correct?

1. The initial deposit must be delivered to the listing brokerage within three business days of acceptance.

2. The listing brokerage and the cooperating brokerage must split the deposit upon delivery.

3. The listing brokerage must provide the co-operating brokerage with a receipt for the deposit upon delivery.

4. The supplementary cheque must be submitted with the offer and then held by the cooperating brokerage until the condition is fulfilled.

5. Sequential deposits are not permitted under REBBA regulations.

6. The entire deposit must be transferred to the listing brokerage immediately upon offer acceptance.

The correct answer is: The listing brokerage must provide the co-operating brokerage with a receipt for the deposit upon delivery.

When the salesperson prepares an offer that includes sequential deposits, it is essential to understand the obligations regarding the deposit's management and acknowledgment. One of the critical aspects of this process is that the listing brokerage is required to provide a receipt for any deposit made upon its delivery. This is a safeguard for both the buyer and the cooperating brokerage, as it officially documents that the deposit has been received. The receipt serves as proof of the transaction and clarity in the process. The requirement for the listing brokerage to provide this receipt not only establishes transparency but also protects the parties involved by ensuring that there is a formal record of the deposit, which can be crucial in situations where disputes may arise regarding the handling of these funds. This practice aligns with regulations governing real estate transactions, emphasizing professional standards and the expectation of accountability among brokerages. The other choices present scenarios that do not align with the legislative framework or established practices in real estate transactions in Ontario, making them less applicable. Thus, the emphasis on the listing brokerage's obligation to acknowledge receipt reinforces the importance of documentation in the transaction process.