Check the payment instructions
Read the deposit terms with your representative.
- Confirm the amount, recipient, due date and accepted payment method.
- Ask your bank how long the payment will take.
More on check the payment instructions
Verify changed instructions through a contact method you already trust.
Keep proof of payment
Save the receipt with your purchase agreement.
- Count the deposit as part of your purchase funds, not an extra amount of savings.
- Tell your representative promptly if a deadline may be missed.
More on keep proof of payment
If the sale changes or falls through, get advice about the contract and deposit release.
The basics
What a deposit is and where it goes
A deposit is money you pay to show the seller you are serious. BC’s real estate regulator notes it is not legally required to form a contract, but most offers include one. The amount and timing are negotiated. BC’s real estate regulator says five to ten per cent of the price is typical, and the deposit is often paid on acceptance or on subject removal.
In most sales, the buyer’s brokerage holds the deposit in a trust account. The Real Estate Services Act requires the brokerage to deposit it promptly. Your realtor cannot hold the cheque personally, even if you ask. At completion, the deposit becomes part of your down payment.
Why it matters
Why the trust rules protect you
The brokerage holds your money as a stakeholder, a neutral party for both sides. If a deal collapses, it can only release the deposit when buyer and seller both sign a release. If they disagree, the money can be paid into court and a judge decides. Knowing this helps you weigh every term before you sign.
How it works
Paying your deposit safely
Read the deposit clause
Check the amount, who holds it, the due date and the form of payment. Ask your realtor to explain anything unclear.
Choose a replaceable method
BC’s real estate regulator says deposits can be paid by cheque, certified cheque, wire or electronic transfer if both sides agree. Pick one that can be replaced if lost.
Never make a cheque out to cash
A certified cheque payable to cash is hard to recover if lost or stolen, and replacing it can cost a fee.
Confirm details by phone
Before sending money, call the brokerage on a number you already know. Do not trust new instructions that arrive by email.
Get a receipt
BC’s real estate regulator recommends asking the holder for a receipt and confirming the money is held in trust. Keep it with your contract.
Track it to completion
Your lawyer or notary will credit the deposit on the statement of adjustments. Check that it appears.
Avoid these
Deposit errors that cause trouble
Missing the due date
A late deposit can put the contract at risk. Ask your bank about limits and timing before the day it is due.
Counting the deposit twice
The deposit is part of your down payment, not extra money. Budget it once.
Agreeing to a third-party holder casually
If someone other than a brokerage holds the deposit, BC’s real estate regulator advises getting independent legal advice first.
Assuming a refund is automatic
Even when a subject is not removed, a signed release from both sides is usually needed before the money comes back.
Example
How the deposit fits the down payment
Hypothetical numbers using the Government of Canada minimum down payment rule. Mortgage insurance and closing costs are left out to keep the arithmetic clear.
| Purchase price | $600,000 |
|---|---|
| Minimum down: 5% of first $500,000 | $25,000 |
| Plus 10% of the next $100,000 | $10,000 |
| Minimum down payment | $25,000 + $10,000 = $35,000 |
| Deposit at 5% of price | $600,000 × 0.05 = $30,000 |
| Down payment still owed at completion | $35,000 − $30,000 = $5,000 |
| Mortgage covers | $600,000 − $35,000 = $565,000 |
If you used the three-business-day rescission right, the fee would be 0.25% of the price: $600,000 × 0.0025 = $1,500, paid from the deposit. See our cooling-off period guide.
Questions to ask
Questions about your deposit
Your realtor
- Who will hold the deposit, and in which trust account?
- When exactly is it due, and in what form?
- What happens to it if a subject is not removed?
Your bank
- What is my daily transfer or draft limit?
- How long will a wire or certified cheque take?
- Can you confirm the payee details with me in person?
Your lawyer or notary
- How will the deposit appear on my statement of adjustments?
- What should I do if the seller will not sign a release?
FAQ
Common questions
How much is a typical deposit in BC?
BC’s real estate regulator says five to ten per cent of the price is typical, but any amount can be negotiated.
Does the deposit earn interest?
BC’s real estate regulator says that unless the contract states the interest goes to the buyer or seller, it is paid to the Real Estate Foundation of B.C. Read the clause in your contract.
Can I pay the deposit by e-transfer?
Yes, if both sides agree. BC’s real estate regulator lists cheque, certified cheque, cash, wire and electronic transfer as possible forms.
What happens if I rescind during the cooling-off period?
The 0.25% fee goes to the seller and the rest of the deposit comes back to you. BC’s real estate regulator says no release form is needed in that case.
Can I pay a deposit in cryptocurrency?
BC’s real estate regulator says digital currency cannot be held in trust, so a third party would hold it. Get legal advice first.
A practical example
Plan for the bank’s practical process
Ask your bank what is needed for the payment method specified in the agreement and how long processing can take.
- Confirm access to the funds and any preparation your transaction professionals require.
- Keep a known phone number for independently checking instructions.
Complete the planning early enough that a routine banking issue does not become a missed deadline.
A detail to keep in mind
An unexpected change to payment instructions should be verified through an established contact, not by replying to the same message.
Official information
Start with these resources, then confirm the details for your property and circumstances.
BC Financial Services Authority: depositsBC Financial Services Authority: Deposits (buying a home)BC Financial Services Authority: Offers to sellersBC Financial Services Authority: Home Buyer Rescission PeriodGovernment of Canada: How much you need for a down paymentReference review: October 6, 2026