September 23rd - 2014

Quiz: Deposit and five business days

Here’s a quiz to test your knowledge. In all of these instances, assume that the offer has been accepted by both parties to an APS and that the deposit in question has been delivered in accordance with the terms of the APS. T

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Here’s a quiz to test your knowledge. In all of these instances, assume that the offer has been accepted by both parties to an APS and that the deposit in question has been delivered in accordance with the terms of the APS. This quiz is oriented around the required time for a brokerage to deposit to the Real Estate Trust Account.

1. You represent a seller and you meet the buyer’s rep, Sally, at a local coffee shop on Friday, Sept. 12. Sally hands you a deal deposit cheque but you are leaving to go out of town to attend a comic book convention. You don’t come back into town until Monday, Sept. 15 and you then bring the cheque to your brokerage that same day. What is the deadline for the cheque to be deposited into the listing brokerage’s trust account? Choose one.

(a)  Friday, Sept. 19 (b)  Monday, Sept. 22

2. As the representative of the co-operating brokerage, you represent a buyer who is leaving town for three months. He meets you on Thursday, Oct. 9 at the airport where he hands you his deposit cheque. You get busy and don’t get a chance to meet Naveed, the listing brokerage rep, until the following Monday, Oct. 13, which is Thanksgiving. It’s a holiday, but both your kids play on the same team at the local hockey arena so you agree to meet at the rink. You hand Naveed the cheque just after your son scores on a breakaway. What is the deadline for the cheque to be deposited into the listing brokerage’s trust account?

(a) Monday, Oct. 20 (b) Tuesday, Oct. 21

3.  You represent a seller and you drive over to the buyer’s brokerage to pick up the deposit cheque on Wednesday, Oct. 22 on your way to the train station where you will start your vacation. You don’t have time to drive back to your brokerage or you will miss your train, so you put the cheque in the mail.  What is the deadline for the cheque to be deposited into the listing brokerage’s trust account?

(a)  Thursday, Oct. 30 (b)  Wednesday, Oct. 29

4.  You represent a buyer who gives you a deposit cheque at your brokerage on Tuesday, Nov. 18. The listing rep, Edna, is busy and so are you, and you can’t get together until Thursday, Nov. 20. On that same Thursday, you go to the listing brokerage but Edna is not there. She was rushed to the hospital after her appendix burst and she needs emergency surgery. You leave the cheque on the desk for the secretary, who is on the phone. What is the deadline for the cheque to be deposited into the trust account?

(a) Thursday, Nov. 27 (b) Wednesday, Nov. 26

ANSWERS:

1. (a) Friday, Sept. 19. Sally handed it to you on Friday. Even though you’re at a coffee shop, the cheque is considered to have been delivered, since you are a representative of the brokerage to which the cheque is payable. The fact that you went out of town has no bearing on the five business days.

2. (a) Monday, Oct. 20.  Even though you handed Naveed the cheque at the hockey rink on a holiday Monday, that does not change or affect the start of the five-day countdown. He received the cheque on Monday, Oct. 13 so therefore the first day in the five-day count is Tuesday, Oct. 14. Five business days takes you to Monday, Oct. 20. REALTORS® are reminded to ensure that the buyer provides a deposit as per the APS. As a real estate salesperson, you are urged to collect and deliver the deposit as quickly as possible. 

3. (b) Wednesday, Oct. 29. The fact that you are going on a vacation by train has no bearing or extension on the five business days. If the cheque sent by mail does not arrive at the listing brokerage by the following Wednesday to ensure deposit into the brokerage trust account, you have not complied with the five-day regulation. Putting the cheque in the mail may not allow enough time. Instead, you should take steps to insure delivery of the cheque to the brokerage. You can ask a colleague to pick up and deliver the cheque. Or you can deliver it yourself and take a later train!

4. (a) Thursday, Nov. 27. The fact that neither Edna nor any other registrant is at the brokerage has no bearing on the five business days. The fact that the secretary did not touch the cheque or hold it in her hand does not alter the five business days. “In the hands of the brokerage” is as “in possession by the brokerage.” Let’s hope Edna gets well soon!

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Ontario Real Estate Association

Jean-Adrien Delicano

Manager, Media Relations

JeanAdrienD@orea.com

416-445-9910 ext. 246

Ontario Real Estate Association
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