What Happens to My Deposit if I Cannot Close My Purchase?
Posted by Steve Harmer on
A buyer who fails to close on a purchase may be risking more than just the deposit - you could be looking at damages, says lawyer Richard Bell
Q: What happens to my deposit if I cannot close my purchase?
A: Whenever a buyer makes an offer for the purchase of real estate the contract provides for a deposit. The deposit is normally around 5 per cent of the purchase price and in most instances is payable within a day or two of removal of any subjects. The standard subjects are subject to financing and inspection. Where the property is strata titled there will also be subjects for satisfactory review of such items as strata minutes, engineer’s reports and depreciation reports.
The reason for a deposit is to secure the buyer’s commitment to purchase…
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A common topic among real estate buyers is whether or not they should offer a price that is much lower than the listed price. It's an interesting concept, but one that is not without its pitfalls. Submitting an offer is one thing, but getting the offer accepted is another thing altogether. Let's take a look at the different factors to consider:
Most purchase and sale agreements come in standard formats, with standard clauses, and are drafted by the builder or real estate board. There are generally spaces throughout the agreement for additional, customized clauses to be added.
You’ve had this feeling before. You’re not totally sure how things are supposed to happen. A million questions are bubbling on your lips. You know your goal, but you need some guidance on how to get from start to finish.