Deposit, not down payment is consideration that accompanies an offer.
The deposit is as important as price and conditions. The larger the deposit the more serious a buyer is in the eyes of a seller.
The deposit is either Herewith or Upon Acceptance. If the deposit is Herewith the buyer has presented the funds to the seller in the form of a bank draft or certified cheque that is ready to be deposited into the listing brokerage’s trust account. The funds are held in trust and released on closing and applied toward the down payment.
If the deposit is Upon Acceptance the buyer has 24 hours or more to bring the deposit to the listing brokerage (via wire, direct deposit or bank draft). The funds are held in trust, released on closing and applied toward the down payment.
Caution applies to those sellers accepting offers with Deposits Upon Acceptance as you run the risk of the buyer walking away.
If you have any questions, please reach out to me! Call or text 416-427-7900.