When making an Offer to purchase a property, the Deposit shows good faith on the Buyer’s part that they are serious and qualified to make the purchase.
The Deposit amount is held in trust and applied to the purchase price of the home when the sale closes.
According to the Agreement of Purchase and Sale, the Deposit can be made
1) Herewith
2) Upon Acceptance
3) As Otherwise Described in this Agreement
Herewith means at the time the offer is made. In a competitive multiple offer situation, the Offer may be accompanied by a Deposit, to potentially sway a seller into accepting a Firm Offer (an Offer without any conditions) on the spot.
Upon Acceptance means within 24 hours of the Agreement being accepted. This is the most common Deposit submission time frame. The Buyer arranges for a wire transfer or delivery of a certified cheque or bank draft to the listing brokerage, a maximum of 24 hours after the Offer has been accepted.
As Otherwise Described in this Agreement means just that: whatever the Buyer and Seller agree to.
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