Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 2 Exam with our comprehensive quiz that covers essential concepts and topics. Enhance your understanding with multiple choice questions designed to test your knowledge and boost your confidence before the exam.

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What responsibility does a brokerage have to their client if a deposit is made under an accepted agreement of purchase and sale?

Interest earned on the deposit must be given to the buyer
Interest earned affects the balance due on closing
Include an 'interest on deposit' clause
Interest earned must be given to the seller

The correct answer is: Include an 'interest on deposit' clause

When a deposit is made under an accepted agreement of purchase and sale, the brokerage holds the deposit in trust until the transaction is completed. Including an 'interest on deposit' clause in the agreement ensures clarity on how any interest earned on the deposit will be handled. This clause outlines whether the interest will be kept by the brokerage, given to the buyer, or given to the seller. It is important to have this clause to avoid any misunderstandings or disputes regarding the interest earned on the deposit. Therefore, option C, which suggests including an 'interest on deposit' clause, is the correct choice.