Humber/Ontario Real Estate Course 3 Exam Practice

If a real estate transaction deposit exceeds the brokerage's remuneration, where should the excess amount go post-closing?

1. Typically paid to the seller.

2. Typically paid to the buyer.

3. Left in the account for six months following closing.

4. Retained by the brokerage.

5. Divided between buyer and seller proportional to their costs.

6. Held in a trust account until a court order is obtained.

The correct answer is: Typically paid to the seller.

In a real estate transaction, if the deposit exceeds the brokerage's remuneration, the excess amount should typically be paid to the seller post-closing. This excess amount is part of the purchase price paid by the buyer and should rightfully belong to the seller as their proceeds from the sale. It is important for the excess deposit to be handled correctly and promptly to ensure that all parties receive the funds they are entitled to from the transaction. The other options are incorrect for various reasons: - If the excess amount were typically paid to the buyer, it would not align with the standard practice in real estate transactions where the deposit is part of the purchase price paid by the buyer to the seller. - Leaving the excess amount in the account for six months following closing is not a typical or recommended practice. It is essential to disburse funds promptly and accurately after closing. - Retaining the excess amount by the brokerage would not be appropriate as the funds belong to one of the parties involved in the transaction. - Dividing the excess amount between the buyer and seller proportional to their costs is not the standard procedure for handling excess deposits in a real estate transaction. - Holding the excess amount in a trust account until a court order is obtained would unnecessarily complicate the process and