Belleville Blog

Lately we have had some issues with deposits received with offers on properties. Here are a few points to help clarify.

Every offer has to have some form of "consideration" to be a binding contract. This is the role played by the "deposit".

Usually the deposit must be collected by the listing agent either at the time the offer is presented- "Herewith" or once an offer is accepted by both Buyer Seller- "Upon Acceptance". If "Upon Acceptance", the deposit must be delivered to the Deposit Holder (usually the listing brokerage) within 24 hours.

Not delivering the deposit in a timely manner can jeopardize an otherwise good deal due to the lack of consideration.

Also remember that a deposit cheque will be deposited and cashed right away. If your deal does not firm up the deposit will be returned to you by the brokerage once both parties have signed a "Mutual Release".

Most Brokerages will hold the funds for a week to 10 days to ensure it has cleared your account, before they will write you a cheque to return the deposit.

The deposit is held until the transaction closes and the deposit goes towards the purchase price. Quite often the deposit will be held by the listing brokerage and will actually be applied to the commission owing from the Seller.

The amount of deposit required varies form area-to-area and can be negotiated in the offer.

Most people know that spring is the hottest real estate market of the year. In fact over 50% of homes sell between March and June!

However the mistake many people make is waiting too long to list their home for the spring market. Spring market buyers are looking right now. We get inquiries every day, many of them from the Internet.

We generally encourage our clients to be on the market by the middle of March to take full advantage of the busy spring market. This puts you in the path of the growing onslaught of buyers. Getting there earlier than your competition could mean a faster sale. At the moment there is little competition and good new listings sell fast.

Thinking of moving before summer? Call us now? Get your Free Home Market Evaluation right away.

Those who hesitate.....