Money placed in trust by a home buyer when making an Offer to Purchase a home is known as a deposit. This deposit is held by the real estate representative or lawyer/notary until the sale is complete. It demonstrates the buyer’s commitment to the purchase and is applied towards the purchase price upon closing. If the sale falls through, the terms of the agreement will determine whether the deposit is refunded.
*The information provided is for educational purposes only and should not be considered legal advice. For specific legal concerns or questions related to your mortgage, it is always best to consult with a qualified legal professional.*