Humber/Ontario Real Estate Course 3 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 3 Exam with our comprehensive quiz. Dive into engaging practice questions that will enhance your understanding and readiness for the test. Elevate your confidence and get ready to ace your exam!

Practice this question and more.

When advising a buyer about a deposit with an agreement of purchase and sale, the agent should mention that the deposit:

Forms part of the downpayment.
Both 'herewith' and 'upon acceptance' submissions are acceptable.
Must always be a certified cheque.
Cannot be made by bank draft.
Needs to be paid electronically only.
Should be disclosed in the purchase agreement.

The correct answer is: Forms part of the downpayment.

The deposit in an agreement of purchase and sale is crucial as it signifies the buyer's earnest intent to complete the transaction. When a buyer submits a deposit, it is generally credited towards the total downpayment needed for the purchase of the property. This means that the deposit will reduce the amount the buyer ultimately needs to provide at closing, making it integral to the financing arrangement. Understanding that the deposit forms part of the downpayment helps the buyer comprehend the financial commitment they are making and its implications for their overall purchase strategy. This understanding is vital as it can influence their budgeting and financial planning during the real estate transaction process.