When an offer is rejected, what happens to the deposit cheque?

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Prepare for the Manitoba Real Estate Exam with our Module 3 quiz. Access multiple choice questions with detailed explanations. Ace your exam with confidence!

Multiple Choice

When an offer is rejected, what happens to the deposit cheque?

Explanation:
When there is no binding contract because the offer is rejected, the buyer’s deposit is returned. The deposit is held in trust as part of the offer, and if the seller does not accept, there’s no agreement to fulfill, so the funds must be released back to the buyer. The seller doesn’t keep it simply because the offer was declined, and it isn’t automatically deposited or destroyed.

When there is no binding contract because the offer is rejected, the buyer’s deposit is returned. The deposit is held in trust as part of the offer, and if the seller does not accept, there’s no agreement to fulfill, so the funds must be released back to the buyer. The seller doesn’t keep it simply because the offer was declined, and it isn’t automatically deposited or destroyed.

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