Ontario Real Estate Licensing Exam Practice · Question
In Ontario, who typically holds the deposit provided by a buyer in a real estate transaction?
According to the Real Estate and Business Brokers Act, 2002 (REBBA), deposits are typically held in trust by the seller's brokerage (or in some cases, the buyer
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Question: In Ontario, who typically holds the deposit provided by a buyer in a real estate transaction?
Answer options:
- The seller directly.
- The buyer's real estate lawyer. ✅ The seller's real estate brokerage, in trust.
- The Land Registry Office.
Correct answer: The seller's real estate brokerage, in trust.
Explanation: According to the Real Estate and Business Brokers Act, 2002 (REBBA), deposits are typically held in trust by the seller's brokerage (or in some cases, the buyer's brokerage or a lawyer), in a designated trust account, until the transaction closes or terminates.
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