Humber/Ontario Real Estate Course 4 Exam Practice

Who typically receives any excess funds in a real estate trust account if a deposit exceeds remuneration due?

1. Brokerage for services rendered

2. Buyer's lender

3. Buyer's lawyer

4. Seller

5. City treasurer

6. Buyer's real estate agent

The correct answer is: Brokerage for services rendered

In real estate transactions involving trust accounts, any excess funds that result from a deposit exceeding the remuneration due are generally directed to the brokerage. This is because the brokerage is legally entitled to receive payments for the services they provided, which includes facilitating the transaction and managing the funds in trust. When a buyer submits a deposit, it is usually held in a trust account until the transaction is completed or until any fees owed to the brokerage are settled. If the deposit exceeds what is owed for services rendered—such as commissions or fees—the brokerage has the right to collect the excess funds. This reflects standard practices in real estate transactions, ensuring that the brokerage can recoup its costs for the services it provided throughout the process. The other options presented typically do not have a claim to the excess funds in this specific scenario. The buyer's lender, lawyer, seller, city treasurer, and the buyer's real estate agent have different roles and responsibilities that do not include receiving surplus funds from a real estate trust account under these circumstances.