People who are in the market for real estate may not realize that the deposit amount can be negotiated with the seller. The law does not provide any minimum for deposits and there is also no standard by which deposits are set. Deposits are usually made in order to demonstrate a buyer's commitment to purchase the property.
When the housing market is good, sellers may prefer buyers who are willing to put up larger deposits. People may ask a real estate professional about what a good amount to offer for the deposit is, but they should remember that they will have a short period of time to come up with the money if the offer is accepted.
The Agreement of Purchase will outline where the deposit will be held until the sale closes. Normally, deposits are held in escrow at a brokerage firm. In the event a condition of the purchase and sale is not met and the deal falls through, both the seller and the buyer will need to sign documents with the brokerage firm outlining how the deposit should be disbursed. If there is a disagreement, the disbursal may become a matter for litigation.
Residential real estate transactions can be exciting for new buyers. They should be aware of the areas of the contract that may be negotiated and act accordingly. Well-informed negotiations may save buyers money in some cases. People who are interested in purchasing a home may want to seek the help of a real estate lawyer to help them pursue such ends. A lawyer may be able to help their clients by negotiating favourable terms. In the event the sale does not go through due to the seller's fault, a lawyer may help with securing the deposit's return.
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