When a buyer makes an offer to purchase a property, the buyers agent draws up a contract of purchase and sale for the buyer and seller to sign. One of the terms of the contract is the deposit, which binds the buyer and seller to the transaction. Sometimes the Vancouver real estate deposit is due when the contract is written. In this case, should the subject to clauses not be removed the deposit is returned to the buyer.
What is the role of the Vancouver Real Estate Brokerage?
The Vancouver real estate brokerage acting for the buyer holds the deposit in Trust until the Closing Date and acts as a stakeholder. The rules regarding Vancouver real estate deposits are governed by RECBC (The Government of BC).
What is the Subject Removal Date?
Buyers generally have a week to carry out their due diligence. At the end of that time the real estate deposit is due and it is part of the total downpayment paid by the buyer. On subject removal date in Vancouver, the buyer signs an addendum to the contract, removing all of their ‘subject to’ clauses. In rare occassions a buyer will collapse the contract after removing all subject to clauses and in effect collapses the offer to purchase. In this case, the deposit can only be refunded if both parties sign a release. If the seller doesn’t sign a release, then you will need to hire a lawyer.
As a buyer or seller make sure you understand how Vancouver real estate deposits work!
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