Q&A : When is the money due when buying a house?
This is in response to the last episode of Calgary Home Podcast where I talked about the offer process. The question is about deposits and when the money is due when you purchase a home.
A: Generally speaking you’ll need to make an initial deposit with your offer - just for example purposes I’ll say $5,000. This will be held in trust by the seller’s real estate brokerage and eventually go towards your down payment when the deal closes.
It’s possible to make an additional deposit at some point after the offer is accepted. What you might encounter is a deposit due after all of the conditions of the sale have been finalized.
The balance of the money is due on the closing date. This would be the remainder of your down payment, the mortgage funds, and any tax adjustments, condo contribution or home owner association fee adjustments. In practice you’ll probably need to write a cheque for the balance of your down payment to your lawyer ahead of time. The lawyers will hold the money in trust until the closing date and release the funds once the legal title for the property is transferred into your name.
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