1451 replies to this topic

[lanforod]

^good luck ever buying a house then.  When you make an offer you have to include a certified cheque for the non refundable deposit

 

 

 

That's not true.

 

You only need to give your deposit within 24 hours of subject removal of accepted offer.

Edited by lanforod, 07 December 2018 - 08:40 AM.

[Mike K.]

Once the buyer lifts conditions a certified cheque is indeed forwarded to the seller, but not when you make an offer, not when that offer is accepted nor any time until the buyer lifts conditions and proceeds. If you are unable to proceed after you’ve lifted conditions and made your deposit, there is a high likelihood that deposit will not be returned.

On the other hand if you make an unconditional offer you should probabaly have cash/cheque at the ready immediately.

[Mattjvd]

Huh, yeah I've never even been asked for a security deposit with an application either. In the four places I've rented, after I've been offered the place I'll bring the security deposit and first month's rent when I meet with the land lord to sign the lease.

Edited by Mattjvd, 07 December 2018 - 08:45 AM.

[tjv]

I've always had to fork over a certified cheque when making an offer on a house.  How else are they going to take you seriously and show you are prepared to put your money where your mouth is.  I know if I was selling my house today and someone made an offer with no deposit, they can easily walk away with no downfall so I wouldn't take them seriously

 

I thought that a deposit was standard, maybe Marko can weigh in

 

As for landlords, that is what I seem to recall, but its been awhile since I made an application to rent.  In this rental market where there are probably 10 applications for ever rental, landlords have the upper hand and I am sure are picking the best applicants.  I definitely don't like the conditions the government is putting on landlords, I guess the government doesn't want fresh rentals to come onto the market anytime soon!

[Mike K.]

I've always had to fork over a certified cheque when making an offer on a house.

 

Then you've been bamboozled and should seek alternative representation when putting together future offers.

 

But maybe you're confusing putting together an offer and lifting conditions? When your conditions are lifted, at that point you provide a deposit. But what's the benefit to you to do so when making an offer? The seller either accepts it or rejects it.

[lanforod]

I've always had to fork over a certified cheque when making an offer on a house.  How else are they going to take you seriously and show you are prepared to put your money where your mouth is.  I know if I was selling my house today and someone made an offer with no deposit, they can easily walk away with no downfall so I wouldn't take them seriously

 

I thought that a deposit was standard, maybe Marko can weigh in

 

As for landlords, that is what I seem to recall, but its been awhile since I made an application to rent.  In this rental market where there are probably 10 applications for ever rental, landlords have the upper hand and I am sure are picking the best applicants.  I definitely don't like the conditions the government is putting on landlords, I guess the government doesn't want fresh rentals to come onto the market anytime soon!

 

The deposit is standard (it's not actually not legally required, but is standard practice for a 5% or greater deposit). The timing of when it is given is where you're wrong - the offer has to be accepted before you need to give the deposit - the exact timing should be included in the contract, standard is 24 hours.

However, per the below link, it should be given as soon as the offer is accepted, not necessarily before the subjects are removed.

 

https://www.recbc.ca.../psm/deposits/ 

[Mike K.]

However, per the below link, it should be given as soon as the offer is accepted, not necessarily before the subjects are removed.

 

 

I think you meant to say that withholding the deposit prior to lifting conditions is not necessarily the case for some?

[Mike K.]

Typically the process works like so:

- buyer makes an offer with or without conditions

- seller accepts the offer with conditions, or

- seller accepts the offer without conditions, and

- buyer pursues measures to work towards lifting conditions, or

- buyer prepares the deposit should there be no conditions, or

- buyer prepares the deposit once conditions have been lifted.

 

If it worked any other way you'd have sellers collecting offers from buyers, cashing their cheques and making a pretty good income doing so while never selling their home.

[tjv]

The deposit is standard (it's not actually not legally required, but is standard practice for a 5% or greater deposit). The timing of when it is given is where you're wrong - the offer has to be accepted before you need to give the deposit - the exact timing should be included in the contract, standard is 24 hours.

However, per the below link, it should be given as soon as the offer is accepted, not necessarily before the subjects are removed.

 

https://www.recbc.ca.../psm/deposits/ 

Ah fair enough, I always made my offers no subject to's.  I remember giving the certified cheque within 24 hours of my offer thou

 

Edit:  I'm also remembering a time when I went to make an offer on a foreclosure in court and I had to have the deposit certified cheque with me when I was in court that day.  Relatives of the owner paid off the balance the night before court so it didn't go ahead, but I had my certified cheque all ready

Edited by tjv, 07 December 2018 - 11:00 AM.

[tjv]

If it worked any other way you'd have sellers collecting offers from buyers, cashing their cheques and making a pretty good income doing so while never selling their home.

That's why there are trust accounts

[Mike K.]

Foreclosures are a completely different process and have different rules.

 

And a trust account doesn't factor into the equation if you've already provided someone a cheque.

 

But it sounds like you've been making unconditional offers, which is completely opposite to an offer with conditions. If the former is all you've done then you would be providing a certified cheque immediately, but unconditional offers is not a standard practice.

[SamCB]

-buyer makes offer. the offer states what the deposit amount will be.

-if seller does not accept the offer, no deposit changes hands / deposit cheque doesn't need to exist

-if seller accepts the offer (regardless of whether there are conditions), the deposit is given in trust (to seller's representative- realtor or lawyer)

-if the conditions aren't lifted and the deals falls thru, the buyer gets the deposit back

-if the sale closes, the deposit is applied to the purchase

 

so yes, you include mention of a deposit when you make an offer, and you get a certified cheque made, but you only give it to the seller's representative when the offer is accepted (and it isn't cashed at this time). it only get's cashed if/when the sale completes.

[Mike K.]

That’s so silly.

Nobody expects a deposit in trust prior to lifting conditions. You lift conditions and supply a deposit. I’d tell my agent to take a hike if I was told I immediately needed to certify a cheque before the housing inspector even untied his ladder.

[tjv]

but what happens if the house inspector gives it a good bill of health and you work to remove the other conditions.  Meanwhile the house owner continues it for sale and when you are ready to close you are told its sold.  If I was the seller I am not holding anything until I see cash because you could walk away if you find a scratch in the floor.  In my mind no deposit = not serious

 

Obviously you would only give the deposit into a legal trust account and not some stranger

[dasmo]

That’s simply an accepted offer with conditions. A deposit to secure an accepted offer is normal. A deposit along with an offer is not.

[Mike K.]

If your offer is accepted with your conditions, the home can’t be sold to anyone else until your offer expires.

[lanforod]

Whatever you're saying and even if you have have done in the past doesn't follow the link I provided from recbc, Mike. Go read it.

 

David is correct.

 

Also, as per that link, it doesn't HAVE to be a certified cheque. It's just recommended it is (or a bank draft).

[Matt R.]

Our last deposit was simply from our credit union into the trust fund of our lawyer, at the same branch, but they have trust accounts with every bank for this purpose. 5% of the purchase price after conditions were removed. It’s that typical?

Matt.

[Mike K.]

Who’s David?

Matt, was your deposit handed in before or after conditions were lifted?

[Mike K.]

Oh, I should add that with pre-sales you “do” need to place a deposit down immediately (well, a cheque) then you have a week for the recision period.