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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If a buyer client wants his deposit returned due to mortgage rejection, what is the brokerage’s course of action?

Automatically return the deposit.
Release the deposit with mutual party consent.
Broker of record decides on deposit issue.
Cheques sent out after certain days.
Deposit kept till alternative solution found.
Broker sends a notice regarding the deposit.

The correct answer is: Release the deposit with mutual party consent.

In this scenario, if a buyer client is unable to secure a mortgage and wants their deposit returned, the appropriate course of action for the brokerage is to release the deposit with mutual party consent. This means that both the buyer and the seller must agree to the release of the deposit before it can be returned to the buyer. This process ensures that both parties are in agreement and protects the interests of all involved in the transaction. Options A, C, D, E, and F are not the correct course of action in this situation. Automatically returning the deposit without mutual party consent may lead to disputes between the buyer and seller. It is not solely the decision of the broker of record to decide on the deposit issue. Sending out cheques after a certain number of days or keeping the deposit until an alternative solution is found may not be in line with the mutual agreement of both parties, which is essential in a real estate transaction. Sending a notice regarding the deposit is not sufficient; mutual consent is needed to release the deposit back to the buyer.