Humber/Ontario Real Estate Course 3 Exam Practice

How long does a listing brokerage have to deposit a 'upon acceptance' deposit cheque into its real estate trust account?

1. From the time that the co-operating brokerage receives the deposit cheque

2. After receipt of the funds to deposit those funds in the commission trust account

3. After receiving the offer made by the buyer

4. After the co-operating brokerage delivers the cheque

5. Upon buyer's acceptance of the offer

6. Within ten business days

The correct answer is: After the co-operating brokerage delivers the cheque

The correct answer indicates that a listing brokerage must deposit the 'upon acceptance' deposit cheque into its real estate trust account after the co-operating brokerage delivers the cheque. This timing is essential because it ensures that the funds are handled responsibly and in accordance with regulatory requirements. When the co-operating brokerage delivers the cheque, it signifies that the funds are now in possession of the brokerage that is responsible for managing the transaction according to the terms set forth in the agreement. Proper handling of the funds helps to maintain trust and transparency in real estate transactions, protecting both buyers and sellers. The other timeframes, such as waiting for the acceptance of the offer or receipt of the funds, do not align with the legal requirements regarding the immediate processing of trust funds upon receipt. Proper protocol emphasizes acting on the funds once they have been received from the co-operating brokerage. This approach also reflects best practices in real estate transactions, ensuring that all parties involved are following the correct procedures for managing deposits.