In Ontario, what protects a buyer against the loss of a deposit entrusted to a registrant in a real estate trade?
Correct Answer
C) Deposit insurance under the mandatory group policy covering all registrants
O. Reg. 579/05 s. 11 requires all registrants to be insured under a group insurance policy arranged and administered by RECO's board. It includes deposit insurance of at least $100,000 per claim and $1,000,000 for all claims from the same occurrence, alongside professional liability insurance. Ontario relies on this mandatory insurance rather than a real estate recovery fund.
Why This Is the Correct Answer
This answer is correct because O. Reg. 579/05 s. 11 requires every Ontario registrant to be covered by RECO's group policy, which includes deposit insurance for the loss of a deposit entrusted to a registrant, at levels of at least $100,000 per claim and $1,000,000 per occurrence.
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