Humber/Ontario Real Estate Course 3 Exam Practice

What requirement does REBBA mandate concerning the handling of deposits?

1. All deposits must be deposited within five business days from offer presentation for acceptance.

2. A deposit from a cooperating brokerage must reach the listing brokerage within five business days.

3. A business day under REBBA includes any day except Saturday or Sunday.

4. The cooperating brokerage’s failure to deliver timely deposits violates REBBA.

5. Day designation for deposits excludes weekends and statutory holidays.

6. Deposits must be handled within the stipulated ten-day period.

The correct answer is: A business day under REBBA includes any day except Saturday or Sunday.

The correct answer highlights the definition of a business day as set out under REBBA. Understanding what constitutes a business day is crucial for compliance with legal and regulatory obligations surrounding real estate transactions. Under REBBA, a business day is defined to exclude weekends and statutory holidays, which means any actions or timelines related to deposits and offers should only take place during these designated business days. This definition is important for interpreting various timelines for handling deposits and ensuring that all parties involved in a transaction understand their obligations regarding deposit handling. It indicates that any deadline for actions related to deposits, such as submission or acknowledgment, should be calculated based on these specific days. The other options discuss various aspects of deposit handling but do not accurately capture the fundamental definition of a business day in this context. Understanding this distinction assists real estate professionals in adhering to compliance measures set out under REBBA, ultimately leading to smoother transactions and fewer disputes related to timelines.