Humber/Ontario Real Estate Course 2 Exam Practice

If a transaction's deposit exceeds the amount of remuneration due and the transaction has closed, what happens to the excess amount in the real estate trust account?

1. It is typically paid to the seller.

2. It is typically paid to the buyer.

3. It must remain in the account for six months after closing before disbursement.

4. It is retained by the brokerage for services rendered.

5. It is directed to the municipality as part of closing fees.

6. It is refunded to the buyer upon written request.

The correct answer is: It is typically paid to the seller.

In this scenario, when a transaction's deposit exceeds the amount of remuneration due and the transaction has closed, the excess amount in the real estate trust account is typically paid to the seller. This is because the deposit generally represents part of the purchase price or consideration that the buyer is providing to the seller as a form of security. Therefore, any surplus in the trust account beyond what is owed to the seller is rightfully theirs. As for the other options: - Option B: It is typically not paid to the buyer since the deposit is part of the buyer's payment towards the purchase. - Option C: There is no requirement for the excess amount to remain in the account for six months after closing before disbursement. - Option D: The excess amount is not retained by the brokerage for services rendered as it rightfully belongs to the seller. - Option E: The excess amount is not directed to the municipality as part of closing fees. - Option F: The excess amount is not automatically refunded to the buyer upon written request as it belongs to the seller.