Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Ontario Real Estate Exam with our comprehensive Humber Course 2 Exam Practice quiz. Engage with multiple choice questions and detailed explanations, designed to help you excel.

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Buyer Carter signs an agreement of purchase and sale on January 10th with an irrevocable date of January 12th. He gives the salesperson a deposit cheque for $20,000, which is to be deposited upon acceptance. The seller refuses Carter's offer on the 12th and the negotiations are at an end. In this situation, the deposit cheque:

Can only be returned to Carter with the mutual agreement of both buyer and seller.
Must be deposited in the real estate trust account on the 12th with a subsequent cheque issued by the brokerage back to the buyer.
Would be returned to Carter immediately following the seller's refusal.
Would have already been deposited on January 10th.
Should be kept by the brokerage as a good faith gesture.
May be held until either party initiates further negotiations.

The correct answer is: Would be returned to Carter immediately following the seller's refusal.

In this scenario, the correct answer is C. The deposit cheque given by Buyer Carter should be returned to him immediately following the seller's refusal of the offer. When a seller refuses an offer before the irrevocable date stated in the agreement of purchase and sale, the negotiations are considered terminated, and the deposit cheque should be promptly returned to the buyer. It is important to understand that in real estate transactions, the handling of deposit cheques is guided by legal and ethical standards. Returning the deposit cheque in a timely manner after a deal falls through demonstrates professionalism and integrity in the real estate handling process.