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.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What effect does a substantial deposit have on negotiations?

It adds credibility
It shows buyer's lack of commitment
It is not necessary
It is advised against
It should be non-refundable
It requires immediate bank approval

The correct answer is: It adds credibility

A substantial deposit in a real estate transaction typically adds credibility to the buyer's offer. It demonstrates to the seller that the buyer is serious and committed to the purchase. This can make the seller more willing to negotiate with the buyer, as they are more likely to believe that the buyer can follow through with the purchase. In real estate transactions, a substantial deposit is often seen as a positive sign of the buyer's intentions and can help strengthen their position in negotiations. Options B, C, D, E, and F are incorrect as they do not accurately reflect the effect of a substantial deposit on negotiations in a real estate transaction.