Deposit

Under the Real Estate Services Act (RESA), SBC 2004, c. 42, and the BCFSA Rules, the deposit must be held in trust by the brokerage representing the listing (seller's side). The deposit is trust money and must be deposited into a pooled or separate trust account maintained by the brokerage. Verify current trust-account requirements with a BC lawyer or notary before acting.

In BC practice, the deposit is typically paid when the buyer removes all subjects (conditions) from the contract, or immediately upon acceptance if the offer is subject-free. The contract of purchase and sale will specify the deposit amount and the timeline for payment. Verify the specific terms of your contract with a BC lawyer or notary before acting.

If the buyer fails to complete the transaction without lawful excuse, the deposit may be forfeited to the seller as liquidated damages, subject to the terms of the contract and applicable law. The seller may also pursue additional remedies, including damages or specific performance, depending on the circumstances. Verify your contractual obligations and remedies with a BC lawyer or notary before acting.

BC law does not prescribe a minimum or maximum deposit amount; the deposit is a matter of negotiation between buyer and seller and is specified in the contract of purchase and sale. Market practice in BC often sees deposits ranging from a few thousand dollars to over $100,000 (as of 2026-07-27 — verify current), depending on the purchase price and local customs. Verify appropriate deposit amounts for your transaction with a BC REALTOR®, lawyer, or notary.

No. Under RESA and the BCFSA Rules, the deposit is trust money and cannot be released to the seller (or anyone else) until completion, or until a court order, mutual release, or arbitration award authorizes release. Any unauthorized release is a serious breach of trust obligations. Verify trust-account protections with a BC lawyer or notary before acting.

The British Columbia Financial Services Authority (BCFSA) administers a mandatory errors and omissions insurance and bonding program for licensed BC brokerages under RESA. If a brokerage misappropriates trust funds, claims may be made against the brokerage's insurance or bond, subject to policy limits and BCFSA requirements (as of 2026-07-27 — verify current). Verify current coverage limits and claims procedures with the BCFSA or a BC lawyer before acting.

The deposit is typically credited to the buyer at completion and forms part of the total cash-to-close (down payment plus adjustments and closing costs). The statement of adjustments prepared by the buyer's lawyer or notary will show the deposit as a credit to the buyer. Verify how your deposit will be applied by reviewing the contract and statement of adjustments with your BC lawyer or notary before completion.

No. Under RESA and the BCFSA Rules, deposits in a brokered real estate transaction must be paid to and held in trust by the licensed brokerage, not paid directly to the seller. Paying the seller directly bypasses statutory trust protections and may expose the buyer to loss. Verify proper deposit-handling procedures with a BC lawyer, notary, or licensed REALTOR® before acting.

If the seller wrongfully refuses to complete, the buyer is generally entitled to a full refund of the deposit and may also pursue additional remedies such as damages or specific performance, subject to the contract terms and BC common law. The brokerage holding the deposit in trust must obtain mutual consent, a court order, or arbitration award before releasing the funds. Verify your remedies with a BC lawyer or notary before acting.

Under the BCFSA Rules and RESA, brokerages may hold deposits in pooled trust accounts (where interest typically goes to the brokerage to offset administrative costs) or in separate interest-bearing accounts if the parties agree in writing. Interest arrangements must comply with BCFSA trust-accounting rules (as of 2026-07-27 — verify current). Verify interest entitlements and trust-account type with the brokerage and your BC lawyer or notary before acting.