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.
Quick Answer
What should you know about Deposit Structures Bc Real Estate?
Deposits in BC residential transactions typically run 5% of purchase price, held in trust by the buyer's REALTOR®'s brokerage. Craig Johnston, Top 1% Team Member — Greater Vancouver REALTORS® and 47+ year Tri-Cities resident, can walk you through the local context. Free Strategy Call ends with a written one-page plan in 24 hours.
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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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 and often a percentage of the price, typically due shortly after subjects are removed. 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.
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