The deposit is a sum of money paid by a purchaser to their realtor or solicitor’s trust account, usually when they have successfully negotiated a purchase agreement or sometimes due within 24 or 48 hours of signing the subject removal (when the contract of purchase becomes firm and binding). These funds are held in trust until the closing of the transaction, at which point they are given to the seller’s solicitor and become part of the overall purchase funds needed to complete the transaction.

As the purchaser, you will typically pay the deposit by a personal cheque or bank draft made out to your realtor or solicitor. Before you hand over the cheque, please take a photo or scan of the cheque (or ask your realtor or lawyer to give you a photocopy). Also, please ask for a receipt from your realtor or solicitor confirming they have received the deposit money in case you need to provide this as part of your mortgage qualification.