When is the deposit due?
Based on the contract of purchase and sale or known as offer drafted by your Vancouver Realtor, the condition of the deposit and the form of its payment is pre-written by the Council of BC, that deposit is due upon acceptance. It also defines the form of its payments and to whom it is payable. Depending on a date and time of the acceptance, the Realtor may make an adjustment to make sure the deposit payment falls within a business day and achievable grounds. For example, they adjust to “the deposit is due 1 business day after acceptance”.
Although an accepted offer is a binding contract and both buyers and sellers are obligated to do their part to meet the condition of the contract, some are under the impression if they place their deposit after their subject and condition is removed, they have less of a responsibility.
In many cases, Vancouver Realtors have started to practice placing deposit for the subject home purchase at a time when their subject conditions are removed instead of acceptance of the contract of purchase and sale. This practice is fully acceptable and is a good practice where it eliminates further administration and paperwork, but it should be very cleared for the real estate buyer that it does not eliminate or reduce any of their responsibility to remove subjects.
Deposit as the contract of purchase and sale defines must be in a certified check or draft payable to the buyer broker’s trust account.
Whether they buyer pays the deposit amount upon acceptance or after the subject removal date, if the buyer in good-faith do everything in their power to remove the subjects but confront issues where they are not capable of doing so, then the deposit is return to the buyer when the seller signs and release the buyer obligation.
This is very important as to answer do I for sure get my deposit back if I don’t remove the subjects, it is legal question and each case must be reviewed and consulted with a legal adviser.
For example, if a buyer places home inspection clause as a subject where it states no amount over $1000 for repair, then the buyer is obligated to obtain quotes from a reputable professional relating to remedy the issue and if it surpasses the amount the buyer can afford, then the buyer can make a decision. In most cases, the buyer is obligated to do everything to fulfill the contract and maybe re-negotiating the price and or asking the seller to repair the issues for the Vancouver house for sale.
The case of subject to financing, it also is a financial institution which defines the mortgage affordability and liability of the buyer. So if there are tremendous issues with the property such as asbestos, wrong plumbing, bad history of strata, and or an upcoming considerable “special assessment” is the strata meetings, the financial institutions are not in a favor of approving the mortgage loan. So the buyer is unable to purchase this MLS® listed Vancouver Condo for sale.
The subject of the deposit falls under a legal advice. As a Vancouver Realtor, I always direct my client to consult with their lawyer or legal adviser in every case specially when it is a legal advice and out of my scope of profession.