Between acceptance and closing of a typical Ontario resale, who usually holds the buyer's deposit in trust?
Correct Answer
B) The listing real estate brokerage
In a typical Ontario resale, the deposit is paid to the listing brokerage as deposit holder and held in its real estate trust account until closing. Section 27 of the Trust in Real Estate Services Act, 2002 (TRESA) requires every brokerage to keep a trust account for money held in trust, and O. Reg. 567/05 s. 17 requires the deposit to be placed in it within five business days.
Why This Is the Correct Answer
The listing brokerage is correct because, in a typical resale, it is named as deposit holder and holds the deposit in its real estate trust account under TRESA s. 27 until closing. O. Reg. 567/05 s. 17 requires it to deposit the money within five business days.
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