Investor · Deposits
Deposits in BC residential transactions typically run 5% of purchase price, held in trust by the buyer's REALTOR®'s brokerage. But the structure is negotiable — and getting it right protects both buyer and seller.
Verified · Investor · Deposits
Typical deposit amount
5% of purchase price for resale. Lower (1-2%) for some new construction at signing, with milestone deposits later.
Held by
Buyer's REALTOR®'s brokerage trust account, OR a deposit holder named in the contract
Timing
Typically due within 24-48 hours of subject removal (firm deal). Some contracts use a 'concurrent with subject removal' structure.
Form
Bank draft or wire transfer most common. Personal cheques rare and risky.
Forfeiture
If buyer fails to close after subject removal, deposit is at risk. Seller may sue for damages beyond deposit if losses exceed it.
Refund
Deposit returned in full if subjects collapse during subject period (deal does not become firm). Returned at closing as part of buyer's funds.
Pre-construction deposits
Often 5% at signing + 5% at firm-up + 5%-10% milestones. Confirm the schedule with the developer's contract.
Increased deposits
Some sellers in hot markets request 10%+ deposit to filter for serious buyers.
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