Humber/Ontario Real Estate Course 3 Exam Practice

In preparing an offer with two deposits, what will be the amount due on completion if the agreement is accepted at $335,000?

1. The seller would sign the Confirmation of Acceptance on March 16th.

2. The amount due on completion of this transaction, subject to adjustments, would be $305,000.

3. The listing brokerage would have to verify the seller's identity using an applicable form, but the co-operating brokerage is not required to do so in the case of the buyer client.

4. The listing brokerage must prepare the receipt of funds record.

5. A new mortgage condition could alter the due amount on completion.

6. The transaction would be subject to approval by the mortgage lender.

The correct answer is: The amount due on completion of this transaction, subject to adjustments, would be $305,000.

The amount due on completion of the transaction, subject to adjustments, would indeed be $305,000 because the initial deposit(s) have been factored into the total agreement amount of $335,000. In typical real estate transactions, deposits serve to demonstrate the buyer's commitment to the purchase and are deducted from the total purchase price. Assuming there is a structure of two deposits, the initial deposit could be around $30,000 (a common figure depending on what has been agreed upon), which would lead to the balance due at completion. Subtracting this deposit from the total price of $335,000 would yield a remaining balance of $305,000 due upon completion. Adjustments for property taxes or utilities may also be factored in, but the base calculation concerning deposits clearly highlights that $305,000 is the amount that would be due. This understanding underscores the importance of how deposit structures work in real estate transactions, establishing the final financial obligations of both parties once an agreement is reached.