Who holds the deposit?
The deposit money given at the time an offer is accepted should be held in trust by an independent body to the agreement till closing. Your Listing Brokerage will do this for you. If the deal doesn't close due to the Buyers fault or neglect, you will be entitled to keep the deposit. If the deal doesn't close due to the Sellers neglect, then the Buyer would be looking to get their deposit refunded. According to the Agreement of Purchase and Sale document, in Canada, buyers must provide a deposit to the seller within 24 hours of on an offer of purchase being signed firm by all parties. Real Estate Brokerages keep deposits in a Trust account until closing day. Effective February 15, 2016, the minimum down payment for new mortgages have been modified. The new breakdown is as follows: • For homes with a purchase price less than or equal to $500,000 the minimum down payment is 5% • For homes with a purchase price greater than $500,000 and less than $1 million, the minimum down payment is 5% of the first $500,000 plus 10% of the remaining balance • For homes with a purchase price of $1 million or more, the minimum down payment is 20%
Forgetting to Cancel/Switch Utilities and Insurance
Many sellers overlook notifying utilities that they are moving or applying for utility service at their new home. Call the utilities and your insurance company as soon as a contract is signed. Find 62
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