The deposit must be paid to the Deposit Holder as required by the Contract terms which can sometimes be immediately.
Paying the deposit on time is crucial in property transactions. It secures the property for you, making it unavailable to other potential Buyers.
If you don’t pay the deposit by the required date as required in the Contract, the Seller may have a right to terminate the Contract and claim compensation from you even after you pay the deposit.
If you don’t provide written evidence to the Deposit Holder of an electronic transfer for payment of the deposit and the deposit has not been received by the Deposit Holder by the due date, the Seller may have a right to terminate the Contract until such time as written evidence is provided.
Missing the deposit deadline can have serious consequences. Not only can the Seller terminate the Contract, but the Seller may also have a right to claim compensation from you.
To avoid being in breach of the Contract, on or before the due date for payment of the deposit (usually the day you sign the Contract)pay the deposit by cheque directly delivered to the Deposit Holder and ensure you have sufficient evidence of when the payment was made; or pay the deposit by electronic transaction and provide written evidence of the successful transaction to the Deposit Holder at the time the electronic transaction is made.
Proper documentation is key to avoiding any disputes. When paying by cheque, make sure to get a receipt from the Deposit Holder. If paying electronically, ensure that you save the transaction confirmation and send a copy to the Deposit Holder immediately.
You should not rely on any directions or relaxations about payments that are contrary to the requirements of the Contract.
If you are unsure about any terms in the Contract or need clarification on the payment process, it is advisable to seek legal advice. A legal professional can provide guidance on the correct procedures and help ensure that you comply with all contractual requirements.
Disclaimer: Every property transaction is different, and the information provided may not be relevant to your circumstances. By using this site you agree that the information provided is for general purposes only and does not constitute legal, financial, or professional advice.
