Glossary · Offers, contracts and closing
Deposit
The deposit is the buyer's good-faith money, held in trust by a brokerage, that counts toward the purchase price at completion.
On the North Shore a 5% deposit is common, but the amount is negotiated, not set by law. It's usually paid within 24 hours of acceptance or of subject removal, as the contract states.
If a buyer backs out after the deal is firm, the deposit is at risk and the seller may have further claims.
Related terms
General information, not legal or tax advice. Rules change; confirm the current figures with the province or your notary or lawyer before relying on them.
