OMVIC Practice Test 2026 - Free OMVIC Practice Questions and Study Guide

In Ontario, the requirement for the handling of deposits in a real estate transaction is designed to protect consumers and ensure funds are managed responsibly. The correct amount that must be held in a trust account is established to prevent any misuse or misallocation of funds.

Deposits exceeding $10,000 must be placed in a trust account to secure the buyer's payment until the transaction is finalized. This regulation is crucial for maintaining transparency and providing a level of assurance to buyers that their money will be handled appropriately and ethically.

This requirement helps ensure that larger sums of money, which are significant in any real estate transaction, are safeguarded against potential risks associated with mismanagement. Holding deposits in a trust account also aids in maintaining compliance with relevant legislation and industry standards, reflecting a commitment to consumer protection in real estate transactions.