Under BC law, deposits received pursuant to a Contract of Purchase and Sale must be held by:
Correct Answer
A) A brokerage, lawyer's or notary's trust account
Under RESA and its regulations, deposits must be placed in a trust account — either the brokerage's trust account, a lawyer's trust account, or a notary public's trust account. This protects the funds until the transaction completes or the contract collapses.
Why This Is the Correct Answer
Option A is correct because under RESA and its regulations, deposits received pursuant to a Contract of Purchase and Sale must be placed in a trust account — specifically a brokerage's trust account, a lawyer's trust account, or a notary public's trust account. These trust accounts are regulated and audited to ensure the safety of client funds until the transaction completes or the contract collapses.
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