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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