Humber/Ontario Real Estate Course 3 Exam Practice

Which party is responsible for ensuring the deposit is transferred correctly in a property transaction?

1. The seller's lawyer.

2. The listing agent.

3. The buyer's lawyer.

4. The listing brokerage.

5. The lender.

6. The home inspector.

The correct answer is: The listing brokerage.

In a property transaction, ensuring that the deposit is transferred correctly is a key responsibility of the listing brokerage. The listing brokerage acts on behalf of the seller to facilitate the sale and is involved in the negotiation and execution of the purchase agreement. Part of this role includes managing the deposit, often held in trust until the transaction is finalized. While other parties, such as the buyer's lawyer, the seller's lawyer, and even the buyer's agent, may play important roles in the process, they are typically focused on their respective responsibilities, such as legal documentation, negotiations, and client representation. The lender and home inspector are also not involved in the actual transfer of the deposit. Thus, the listing brokerage’s role in overseeing the correct transfer of the deposit is essential to ensure compliance with the terms of the agreement and to protect both parties involved in the transaction.