Craig Johnston Personal Real Estate Corporation · Brokerage: Royal LePage Elite West
Investor · Deposits
There is no set deposit amount in BC — it is negotiated and written into the contract. The deposit is usually held in trust by the buyer's REALTOR®'s brokerage as a neutral stakeholder. But the structure is negotiable — and getting it right protects both buyer and seller.
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How do real estate deposits work in BC?
On a BC resale purchase, the standard contract says the deposit is paid within 24 hours of acceptance unless you agree otherwise. It's usually held in trust by the buyer's brokerage, credited to the price on completion, and the amount is negotiable. If you use the 3-business-day rescission period, 0.25% of the price goes to the seller from the deposit and the rest comes back to you.
Verified · Investor · Deposits
Typical deposit amount
Negotiated in each contract — no legal minimum or standard. Presale contracts usually set out a schedule of deposits; the amounts are in the developer's purchase agreement.
Held by
Buyer's REALTOR®'s brokerage trust account, OR a deposit holder named in the contract
Timing
The standard BC contract says the deposit is paid within 24 hours of acceptance, unless the parties agree otherwise in writing (for example, within 24 hours of subject removal). If the buyer doesn't pay as required, the seller may terminate the contract.
Form
The standard contract allows certified cheque, bank draft, wire transfer, a lawyer's/notary's or brokerage trust cheque, or an uncertified cheque for the deposit. Ask the holding brokerage which method it prefers, and make sure the funds clear on time.
Forfeiture
If a firm buyer doesn't pay the balance by the completion date, the seller may terminate; the standard contract says the deposit is then forfeited to the seller on account of damages, without limiting the seller's other remedies.
Refund
If subjects aren't removed, the deposit is normally released back to the buyer once both buyer and seller sign a release; the brokerage can't release it on its own. On a completed sale, the deposit is credited toward the purchase price.
Pre-construction deposits
Presale deposits follow the schedule in the developer's contract. Under the Real Estate Development Marketing Act they must be held in trust by a brokerage, lawyer or notary (unless deposit insurance is in place), and you have seven days to rescind after the later of signing and receiving the disclosure statement.
Increased deposits
Some sellers ask for a larger deposit as a sign of commitment; the amount is always negotiable.
| Deposit type | When it's paid | Who holds it | How you can get it back |
|---|---|---|---|
| Resale deposit (BCREA Contract of Purchase and Sale) | Within 24 hours of acceptance unless the contract says otherwise | In trust with the brokerage (or lawyer/notary) named in the contract, as a stakeholder | Credited toward the price on completion. If the deal ends before completion, it's released by a release signed by buyer and seller (or by court order). If a firm buyer fails to complete, it can be forfeited |
| Home Buyer Rescission Period fee | Taken from the deposit only if the buyer rescinds within 3 business days of acceptance | Paid by the holding brokerage to the seller | Not refundable. It equals 0.25% of the price, and the rest of the deposit goes back to the buyer |
| Presale deposits (REDMA) | On the schedule in the developer's purchase agreement | In trust with a BC brokerage, lawyer or notary. They can be released to the developer only if authorized deposit insurance is in place | Returned in full, with any interest earned, if you rescind within the 7-day period, or if the developer doesn't complete the development |
Sources: BCREA Contract of Purchase and Sale (s.2, s.12); BCFSA Deposits; BCFSA Home Buyer Rescission Period consumer guide; BCFSA REDMA FAQs and Consumer Guide to Pre-sale Purchases.
No. Deposit rules come from the provincial contract, the Real Estate Services Act, the Property Law Act and REDMA, so they're the same in Coquitlam, Port Coquitlam, Port Moody, Anmore and Belcarra. What changes locally is how often you'll be signing a presale agreement rather than a resale contract.
Many purchases in these areas are new construction, so you're more likely to be on a staged REDMA deposit schedule with a 7-day rescission right than on the 3-day resale rule. Read the disclosure statement within that 7-day window.
Buyers here see both new-tower presales and resale condos and townhomes, so check which regime your contract falls under before you assume you have 3 days or 7.
Most purchases are resales under the standard contract: the deposit is due within 24 hours of acceptance unless agreed otherwise, and the 3-business-day rescission period applies.
No pressure. No obligation. Just a 20-minute call to talk through your specific situation and run the numbers.
The deposit is one of the most misunderstood parts of a purchase. Six points to understand what it is and how it behaves.
Point
A deposit is money the buyer puts forward to show they are serious once an offer is accepted. It signals good faith and forms part of the total funds for the purchase.
Point
Deposit amounts are negotiable. Under the standard BC contract the deposit is due within 24 hours of acceptance unless you agree a different time in writing. The specifics are set out in the contract you sign.
Point
The deposit is generally held in trust, commonly by a brokerage, rather than going straight to the seller. That neutral holding protects both parties until completion.
Point
At completion the deposit is credited toward the purchase price, so it is not an extra cost — it is an early instalment of money you were paying anyway.
Point
What happens to a deposit if a deal falls apart depends on the contract and the reason. This is precisely why clear terms and good advice around conditions matter so much.
Point
Presale deposits usually follow a staged schedule over the construction period rather than a single payment. If you are buying new, understand that schedule before you commit.
The key idea is that a deposit is your own money working as a sign of commitment and an early instalment on the price, held safely in trust in the meantime — not a fee and not a payment to the seller. Understanding the amount, the timing and the conditions attached lets you enter a purchase confidently rather than anxiously.
Because what happens to a deposit in a failed deal turns on the exact contract terms and the circumstances, this is an area where careful wording and professional guidance genuinely protect you. Treat the above as general information, and review the deposit terms of any specific contract with your REALTOR® and, where appropriate, a lawyer before you sign, because a few minutes spent understanding when the deposit is due, where it is held and what governs its return is time well spent on what is often a substantial sum.
Yes, if the seller agrees. The standard BC Contract of Purchase and Sale says the deposit is paid within 24 hours of acceptance unless agreed otherwise, so the timing can be changed in writing in the deposit clause, for example to within 24 hours of subject removal. Sellers in competitive situations may resist, because an early deposit shows commitment. Whatever you agree, treat the deadline as firm: if the deposit isn't paid as the contract requires, the seller may terminate the deal.
The brokerage holding your deposit pays the 0.25% rescission fee to the seller from it and returns the rest to you. BCFSA confirms no separate release agreement is needed when a buyer rescinds under the Home Buyer Rescission Period. The period runs three business days, starting the next full business day after acceptance, and neither side can waive it. Because the standard deposit is due within 24 hours of acceptance, it is usually already in trust when the rescission window is open.
No. The 3-day Home Buyer Rescission Period doesn't apply to sales where section 21 of the Real Estate Development Marketing Act applies, which covers most presales. Presale buyers instead have a seven-day right to rescind by written notice to the developer, counted from the later of signing and receiving the disclosure statement. If you rescind, all deposits must be returned promptly, with interest if earned, and with no 0.25% fee. Leasehold properties, auction sales and court-ordered sales are also outside the 3-day rule.
The deposit is still yours. It sits in trust with the brokerage as a neutral stakeholder, not with the seller. If the seller fails to complete, you'd normally expect it back, but the brokerage can only release it once buyer and seller both sign a release. If they don't agree, both sides need legal advice, and as a last resort the brokerage can pay the money into BC Supreme Court for a judge to decide. Talk to a lawyer about any claim beyond the deposit itself.
Yes, there are two layers of protection. First, the brokerage must hold the deposit in trust as a stakeholder under the Real Estate Services Act, separate from its own money. Second, if a licensee misappropriates or fraudulently takes money held in trust, the Special Compensation Fund, administered by the Superintendent of Real Estate, can pay up to $200,000 per claimant. Claims generally have to be filed within two years. It isn't deposit insurance in the CDIC sense, so check where your money is going before you send it.
Usually not. BCFSA says that unless the contract specifically states that interest on the deposit is payable to the buyer or the seller, the interest goes to the Real Estate Foundation of B.C. On a typical resale with a short completion, the amount involved is small anyway. If you're putting down a large deposit with a long completion date, you can ask to add a term that pays the interest to you. Presales are different: under REDMA, deposits are returned with any interest earned if you cancel.
Often, yes, but expect questions. Under federal anti-money-laundering rules, a brokerage must keep a record of funds it receives, in any amount, including the name, address, date of birth and occupation of the person who paid. If a parent wires or drafts the deposit, the brokerage will record their details as well as yours. Your lender will also want to see where the money came from, so tell your mortgage professional early and keep a paper trail.
Maybe, but a 24-hour deadline is tight. A Home Buyers' Plan withdrawal requires a written agreement to buy at the time you withdraw, so you can only request it after your offer is accepted. Your issuer then has to process Form T1036. An FHSA qualifying withdrawal (Form RC725) doesn't require the agreement to be in place first, provided you buy before October 1 of the following year, so you can withdraw ahead of time. A practical route is to negotiate the deposit timing. I'm happy to map the timeline with you.
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The deposit is the first money at risk in a BC purchase. These are the decisions I walk you through before it leaves your account.
We decide how much to offer and when it’s paid: on acceptance or after subjects are removed, and within what time. In a competing offer, the deposit is part of how strong your offer looks.
I explain the three-business-day Home Buyer Rescission Period and its fee of 0.25% of the purchase price, so you know what you’d pay to walk away and when that right ends.
The deposit goes to the brokerage named in the contract, usually the listing brokerage, and is held in trust. I confirm the payment method and deadline in writing.
Your deposit is credited to you on the Statement of Adjustments. We check that it appears correctly before you sign.
Want to see how deposits and subjects worked on real files? The case studies walk through Tri-Cities purchases from start to finish. Read the Tri-Cities case studies →
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“Craig sold my property in just 6 days, which is an incredible feat. After receiving one offer, he quickly reconnected with all the other realtors who had viewed the property, and before I knew it, we had multiple offers—all over asking price!”Heather Fox
“We received seven offers, and Craig held firm on our priorities: no subject to sale and achieving our price. We took the home off the market over Christmas, but behind the scenes Craig continued working. When we re-listed in January, it sold in just three days to buyers he had been nurturing — at the price we wanted.”Jim Turnbull
“Craig worked with my wife and me for over 3 years to find the perfect home. He was endlessly patient with us through the process. Eventually, we found our perfect home and he moved fast to execute on our behalf. He negotiated fairly and thoroughly with the sellers and was our advocate all throughout our first home purchase.”David Catterall
I work with buyers across Metro Vancouver, with a focus on Coquitlam and the Tri-Cities. A 20-minute strategy call covers budget, neighbourhoods, timing and the questions specific to your situation — and ends with a written one-page plan. No pressure, no obligation.
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