Humber/Ontario Real Estate Course 2 Exam Practice

Regarding contractual agreements, what is required for interest on deposits?

1. Clause in Schedule A

2. Interest impacts balance closing

3. Interest owed to buyer

4. Interest owed to seller

The correct answer is: Clause in Schedule A

In regards to contractual agreements, interest on deposits is typically required to be addressed in a specific clause in Schedule A of the agreement. This is the correct answer because the details regarding the payment of interest on deposits should be clearly outlined in writing within the contract itself, usually in Schedule A. This clause helps to establish the conditions under which interest will be calculated and paid, ensuring transparency and clarity for both parties involved in the transaction. Options B, C, and D are incorrect as they do not accurately reflect the standard practice of including a clause in Schedule A to address the payment of interest on deposits. Interest impacting the balance closing, interest owed to either the buyer or the seller are not the primary considerations when determining the requirement for interest on deposits in contractual agreements within the context of Ontario real estate transactions.