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Deposit on an Offer to Purchase
2015-10-30 09:01:45 Posted By Jila RezaiWhen you write an offer to purchase a home, you and your realtor will indicate how much money will be allocated as your good faith deposit. The deposit will be credited towards your down payment.
The deposit shows the seller that you are serious and is your financial tie to honor the contract.
There is no hard and fast rule as to how much your deposit will be. Some realtors feel a larger deposit makes for a stronger offer and can sometimes encourage the seller to accept a lower price. A deposit of 5% to 10% is customary, although each situation is different.
You may be required to pay a small amount when you write the offer and the balance is paid when you remove your subjects. Your deposit is normally paid by way of bank draft or certified cheque, and made payable to your realtor's company trust account.
Where does the deposit come from?
- cash in the bank
- a line of credit or credit card that you already have
- a temporary loan provided by a family member or financial institution
Please feel free to contact me at 604-773-3599 if you have any questions regarding making an offer on a house purchase. I am here to help!