Humber/Ontario Real Estate Course 2 Exam Practice

Which statement about a real estate deposit is accurate?

1. It must be at least 10% of the purchase price.

2. It is usually held in trust by the brokerage.

3. It is non-refundable under all circumstances.

4. It must be paid in cash.

The correct answer is: It is usually held in trust by the brokerage.

A real estate deposit does not necessarily have to be 10% of the purchase price. In fact, it can vary depending on the agreement between the buyer and seller. Option C is also incorrect as there are some circumstances under which a real estate deposit may be refunded. Option D is also incorrect as a real estate deposit can be paid in various forms, not just cash. Option B is correct because it is a common practice for the deposit to be held in trust by the brokerage until the closing of the deal. This is to protect both the buyer and seller until the sale is finalized.