Humber/Ontario Real Estate Course 1 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 1 Exam with our comprehensive quiz. Test your understanding with multiple choice questions and detailed explanations. Build confidence and knowledge for a successful exam experience!

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What is true regarding a rent deposit?

Cannot exceed $3,000 if the monthly rent is $1,500.
Is limited to one week's rent for all residential tenancies.
May be collected only after the tenant takes possession of the unit.
Can be collected by a landlord at the beginning of a new tenancy.

The correct answer is: Can be collected by a landlord at the beginning of a new tenancy.

A rent deposit can be collected by a landlord at the beginning of a new tenancy, which makes the statement D correct. This deposit is usually taken to ensure that the tenant will fulfill their obligations under the lease agreement, such as paying rent on time and taking care of the property. It is important for landlords to clearly outline the terms and conditions regarding the rent deposit in the lease agreement to avoid any misunderstandings. Option A is incorrect because the rent deposit is not determined based on a fixed percentage of the monthly rent. Option B is incorrect because the amount of the rent deposit can vary depending on the terms negotiated between the landlord and tenant. Option C is incorrect because in Ontario, a landlord can request and collect a rent deposit before the tenant takes possession of the unit.