Under O. Reg. 567/05 made under TRESA, when must an Ontario brokerage deposit a buyer's deposit that comes into its hands in trust?
Correct Answer
C) Within five business days of receiving it
O. Reg. 567/05 s. 17(1) requires a brokerage to deposit money it receives in trust into its real estate trust account within five business days. Under s. 18 the brokerage then disburses the money as soon as practicable when the terms of the trust require it. There is no fixed post-closing holdback period in the regulation.
Why This Is the Correct Answer
Section 17(1) of O. Reg. 567/05 says the brokerage shall deposit trust money in the trust account maintained under s. 27 of TRESA within five business days. A business day excludes Saturdays and holidays under the Legislation Act, 2006.
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