Humber/Ontario Real Estate Course 2 Exam Practice

If a buyer’s deposit is placed in a variable interest-bearing account, what must be disclosed according to the Real Estate and Business Brokers Act?

1. Account number

2. Brokerage's commission fees

3. Current interest rate

4. Trust account type

5. Deposit amount

6. Agreement of purchase and sale details

The correct answer is: Current interest rate

According to the Real Estate and Business Brokers Act, if a buyer's deposit is placed in a variable interest-bearing account, the current interest rate must be disclosed. This information is important to ensure transparency in the transaction and to keep all parties informed about the handling of the deposit. While other options may be important in a real estate transaction, such as the deposit amount, trust account type, and agreement of purchase and sale details, the specific requirement for disclosure in this scenario is the current interest rate. Providing the current interest rate allows all parties involved to understand how the deposit funds are being managed and any potential earnings associated with them.