Humber/Ontario Real Estate Course 4 Exam Practice

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Humber/Ontario Real Estate Course 4 Exam with our comprehensive practice tests. Study with flashcards and multiple-choice questions, complete with hints and detailed explanations. Achieve success on your real estate licensing journey!

Start Multiple Choice Practice Test
Start Flash Cards

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!

Practice this question and more.

How should a brokerage handle deposit funds relating to a real estate offer?

  1. Begin the five-day timeframe upon receipt of the buyer's offer.

  2. Start the five-day deposit period after receiving the deposit.

  3. Reduce the deposit period by the time taken by the buyer to deposit funds.

  4. Apply different rules for residential and commercial properties.

  5. Deposit immediately upon receiving funds.

  6. Inform both buyer and seller of deposit receipt dates.

The correct answer is: Start the five-day deposit period after receiving the deposit.

Starting the five-day deposit period after receiving the deposit is the correct approach for a brokerage handling funds relating to a real estate offer. This timeframe is crucial because it aligns with the legal obligations and timelines set forth in real estate transactions. When a brokerage receives a deposit from a buyer, they are generally required to hold this money in trust until the transaction is finalized. The beginning of the five-day period refers specifically to the point in time when the brokerage physically receives the deposit. This ensures clarity in the process, allowing both parties to understand when the deposit has been officially recognized and what the expected timeframe for handling it will be. The other options do not accurately reflect the standard practices for deposit handling. For instance, beginning the timeframe upon receipt of the buyer's offer does not account for when the deposit itself is actually received. Similarly, reducing the deposit period based on when a buyer decides to fund their deposit could lead to inconsistency and confusion in the transaction timeline. Applying different rules for residential and commercial properties would complicate matters unnecessarily; typically, the same rules apply across types unless specified otherwise in agreements. While it's important for brokerages to inform both buyer and seller of deposit receipt dates and to handle deposits promptly, the key official moment of starting the five

More Questions Like This