Humber/Ontario Real Estate Course 3 Exam Practice

What should a salesperson do with a seller’s consent when financing falls through for a buyer?

1. Automatically refund the deposit within 24 hours

2. Seek written mutual agreement from buyer and seller

3. Transfer the deposit to a trust account

4. Withhold the deposit until further negotiations

5. Request a court order to settle the deposit issue

6. Notify REBBA to intervene in the matter

The correct answer is: Seek written mutual agreement from buyer and seller

When financing falls through for a buyer, the most appropriate course of action for a salesperson is to seek written mutual agreement from both the buyer and seller. Doing so ensures that both parties are on the same page regarding the deposit and any next steps. This collaborative approach helps maintain transparency and fosters good communication, which can be crucial for achieving an amicable resolution. Obtaining a mutual agreement protects the interests of both the buyer and seller, as it clarifies the terms regarding the deposit in light of the financing issues. It also aids in preventing potential disputes down the line, as both parties have formally acknowledged and accepted the situation together. While other options may seem viable in certain contexts, they do not prioritize the need for mutual agreement, which is essential for sustaining the transactional relationship and complying with regulatory expectations. For example, automatically refunding the deposit could undermine the seller's interests without their consent, while withholding the deposit without agreement could lead to conflict. Overall, seeking mutual agreement is the most equitable solution in this scenario.