Questions Concerning Deposit Cheque when you Buy a House
Some Questions Answered regarding a Deposit Cheque when you Buy a House…
~ Bank draft preferable over personal cheque, because if anything falls through you typically get it back faster.
~ Your Deposit Cheque is Due within 24 hrs of an An Accepted Agreement.
For Example, If you negotiate and finally come to terms at 7pm, your deposit cheque will be due before 7pm the next calendar day (unless otherwise negotiated)
Sometimes Listing Agents are flexible if you can’t get it to them ASAP, because of mailing it, or a holiday.
~ Could range from $2500 to 5% of purchase price
~ Pre Construction Condo Purchases typically have a deposit structure to receive funds up to 20%.
(ex: $5000 upon signing, $5000 after 10 day cooling off period, up to 5%, or 20% before closing)
~ The Listing Agent holds your money in their brokerage trust account until closing day.
~ You owe the Balance of the Purchase Price, minus the Deposit cheque on Closing Day
The wire transfer will occur between the Listing Brokerage and the Sellers Lawyer
~ You can drop off your Deposit Cheque at the Listing Brokerage, or your Realtor can
~ You should get a Receipt from the Listing Brokerage that they received your Deposit for Purchase.
Your Realtor needs to fill out a FINTRAC form with the receiving details.
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