Humber/Ontario Real Estate Course 2 Exam Practice

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When drafting an offer with two deposits, which of the following is correct?

  1. The first deposit of $10,000 must be provided to the listing brokerage within three business days of acceptance, as required by law.

  2. Grouping deposits as sequential (one at offer time and another when a condition is met) is not permitted by regulations.

  3. The co-operating brokerage must receive a receipt from the listing brokerage upon deposit delivery.

  4. The additional $20,000 cheque must go with the offer but held by the cooperating brokerage until the mortgage condition is met.

  5. Only one deposit is permitted.

  6. All deposits must be paid upfront.

The correct answer is: The co-operating brokerage must receive a receipt from the listing brokerage upon deposit delivery.

In Ontario, when drafting an offer with two deposits, it is important to note the correct procedure for handling these deposits. Option C is correct because it states that the co-operating brokerage must receive a receipt from the listing brokerage upon deposit delivery. This process ensures transparency and accountability in the transaction, as both brokerages are required to document the receipt of deposits. Regarding the other options: A. The statement in option A about providing the first deposit of $10,000 to the listing brokerage within three business days of acceptance is incorrect. There is no specific legal requirement stating a timeline for deposit submission, although it is a common practice to do so promptly. B. Grouping deposits as sequential (one at offer time and another when a condition is met) is actually permitted in real estate transactions in Ontario, so this statement is incorrect. D. The statement in option D about the additional $20,000 cheque being held by the cooperating brokerage until the mortgage condition is met is incorrect. Both deposits are typically held by the listing brokerage until the conditions are satisfied or the deal falls through. E. It is possible to have more than one deposit in an offer, so the statement in option E that only one deposit is permitted is incorrect. F. Requiring all deposits to be paid upfront is not a standard practice in Ontario real estate transactions, so option F is incorrect.

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