Paying your deposit

Did you know that if you do not pay your deposit on time when buying a residential property, you are in default of the contract?

An REIQ contract for buying a residential property provides a section for a buyer to pay a deposit

If you do not pay the full amount of the deposit and/or pay it on the due date recorded in the contract, you are in default of that contract;

This means the seller can terminate the contract at any time

Even if you pay the deposit at a later date during the the contract, the seller can still terminate

You may lose the contract and the seller is entitled to sue you for damages to recover the non-payment of the deposit by you on the due date Before signing a contract, be aware of how much deposit you are required to pay, the due date and whether you can meet those obligations. The content of this article is of general informational nature. It is not intended to be comprehensive nor does it constitute legal advice. If you have a specific legal question, you should obtain legal advice.