In Ontario, how is the amount of the deposit on a resale residential offer determined?
Correct Answer
C) It is negotiated between the buyer and the seller
No Ontario statute or regulation sets a deposit amount or percentage for a resale offer. The buyer proposes an amount in the offer and the seller can accept it or counter, so the deposit is negotiated. What the law does govern is handling: the brokerage must place the deposit in its trust account within five business days (O. Reg. 567/05 s. 17).
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