In an Ontario resale market, in which situation would a buyer most likely choose to offer a larger deposit?
Correct Answer
C) When competing with other buyers in a multiple-offer situation
In a multiple-offer situation, a larger deposit is one way for a buyer to make an offer stand out, because it signals commitment and gives the seller more security if the buyer defaults. Price cuts, a low offer or a long time on the market all point to a seller who has less bargaining power, so the buyer has less reason to offer more. No Ontario law sets a deposit amount; it is negotiated.
Why This Is the Correct Answer
This is correct because competition among buyers is when a stronger offer matters most, and a larger deposit is a common way to strengthen an offer by signalling commitment and giving the seller more security.
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