Will you get your deposit back if you don't buy the house?


When a buyer places an offer on a property, one of the items negotiated is a deposit. 

The bigger the deposit, the more serious the offer seems.

If an offer has conditions such as financing and home inspection, this is called a conditional offer. 

Conditional offers have pending periods. Usually one - two weeks.

During the pending period, the buyer is given the opportunity to satisfy their conditions and submit their deposit. 

(There are times where deposit is negotiated to be dropped after condition removal, but not always)

If the buyer is unable to remove their conditions, the deposit will be returned to the buyer.

If the buyer removes their conditions (a legal promise to buy) it means they have bought the property and the deposit will go towards the sale.

Now let's say the BUYERS removed their conditions (legal promise to buy) but don't complete the sale by possession day, the deposit will most likely not be returned.

Before writing an offer you can consult your lawyer. If time is of the essence, you can add a Buyers condition in the offer:

"This offer is subject to review and acceptance of Buyers lawyer".

An experienced Realtor will be able to explain your options and draft the best offer for you.

DM me if you're thinking of buying, I'd love to be apart of your real estate journey!
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