When buying a property which is often your single largest invesment in your life, it’s a good idea to know your numbers backwards and forwards. In this article I am going to talk about deposit on purchase.

Deposits are required on purchase & sale agreements when you become the successful bidder on the property. It shows that you are serious about buying the property and illustrates what you are willing to lose should you break the legally binding contract. While there is no fine line about the amount of deposit required, generally it is between 5-10K and is due shortly after you have become the successful bidder.

These deposits are held by the vendors (seller) agent’s brokerage in a trust account. These deposit are not used by the brokerage for any expenses and are frequently audited to confirm this. Brokerage … Read more