Is a Buyer Obligated to Deliver the Deposit Funds? | Top Toronto Real Estate Agent Karen Law
Wednesday Jun 19th, 2019Share
Here's a question that a client had asked. Thought I would share the question and answer, as it might help someone else.
If you have any questions about real estate or know someone that wants assistance buying or selling a property in the Greater Toronto Area, give Karen a call
Toronto Real Estate Broker
QUESTION: Once an offer is accepted, is a buyer obligated to deliver the Deposit Funds?
ANSWER: The short answer is "no"
See transcript below:
• 0:00 - 0:59
Hey guys. I just had a question from a client and I thought it would be helpful if I shared the answer and question with you guys.
So this question was in regards to a buyer: if a buyer is obligated to deliver the deposit funds once an offer has been accepted. So here in the Toronto, in the Toronto real estate market where I practice, once an offer is mutually accepted by both sides of the party, a buyer is actually not obligated to deliver the deposit funds. So the offer, even though it's been mutually signed off by both the buyer and the seller and they have come to an agreement on the terms and the price, the offer is still conditional upon the deposit funds being delivered to the listing brokerage. Typically and in most cases, the deposit funds are to be delivered within 24 hours of the offer being accepted.
• 1:00 - 2:00
Just so you know that guys, again the deposit is a condition. The offer is conditional upon the deposit funds being received. And sometimes sellers, they want to expedite that process, especially if we're in a multiple-offer scenario. So if you're expecting multiple offers to come in, sometimes in cases, you'll see the seller and the listing agent requesting all offers to come in with a bank draft or certified check. So in this way, as soon as an offer is on the table with the bank draft or certified check, once the offer is signed off on by all parties, they have that certified check and Bank draft in hand. We don't have to wait for 24 hours. And so that deal is no longer conditional upon the deposit funds being received.
• 2:00 - 2:16
So if you guys have any other questions that we can help with or, you know someone that we can help with in Toronto or the GTA for Real Estate, give us a call.