When one purchases property in Vancouver a 5% Deposit is required either upon acceptance or within 24 hours of the final subject removal date. This Deposit is "Goodwill" money that is held in the Buyers Agent's trust account until the Completion Date when the Buyer takes ownership and the Seller gets their money.
If the Buyer does not complete on the property on the Completion Date the Seller may keep the Buyers 5% deposit and sell the property to another party. If the Seller does not complete on the Completion Date the buyer can get their deposit back and be free of any obligation to complete on the property.
The 5% deposit is designed to protect Sellers from frivolous or unreliable Buyers. The 5% deposit also protects Buyers from unreliable or frivolous sellers not completing, because having the deposit paid is one of requirements if the Buyer wants to bring legal action against the Seller to force them to Complete.
If you are thinking of buying property in Vancouver, be prepared to pay a 5% deposit within a week of having a SUBJECT FREE accepted offer.
If you have any questions on this post please contact me at any time.
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