Funds paid by the buyer — typically within 24 hours of acceptance of an offer — and held in trust by the seller’s real estate brokerage until closing. In Ontario, the deposit forms part of the purchase price and is applied toward the balance due on closing. Deposits are typically 5% of the purchase price in competitive Ontario markets. If the buyer defaults on a firm agreement without legal justification, the deposit may be forfeited to the seller. This is distinct from a down payment.
Synonyms:
earnest money|deposit cheque