Humber/Ontario Real Estate Course 1 Exam Practice

Under what conditions can a residential landlord ask for a deposit?

1. If the tenant has bad credit history

2. As a security deposit for damages

3. For keeping pets in the property

4. Before the tenant moves into the property

The correct answer is: Before the tenant moves into the property

A residential landlord can ask for a deposit before the tenant moves into the property. This deposit is commonly referred to as a "rental deposit" or "security deposit," and it is meant to secure the landlord in case the tenant causes any damages to the property or fails to pay rent. It is a common practice in the real estate industry to request a deposit upfront to ensure that the landlord's interests are protected. Options A, B, and C are not entirely accurate in this context. While having a bad credit history may influence the landlord's decision to rent out the property, it is not a condition under which a deposit can be requested. A security deposit is indeed a common reason for asking for a deposit, but the timing specified in the question is essential - it is typically requested before the tenant moves into the property. Additionally, while some landlords may charge an additional deposit for pets, it is not a general condition under which a deposit can be requested according to the Residential Tenancies Act in Ontario.