Deposits in B.C.: how much, who holds it in trust, and when it’s at risk
The deposit is your good-faith money. Here is how much is typical, where it actually sits, and the moment it changes from refundable to at-risk.
When an offer firms up, you put down a deposit — money that signals to the seller you are serious. One thing to get straight first: in B.C. this is not “escrow” (a U.S. term you can ignore here). Your deposit is held in trust.
How much, and where it sits
Key facts
- A deposit is typically around 5% of the purchase price (5–10% is common, and it is negotiable).
- It is held in a brokerage’s trust account, usually your own brokerage’s.
- The brokerage holds it as a neutral stakeholder — not on behalf of either the buyer or the seller.
- Trust accounts are regulated by BCFSA; unless the contract says otherwise, interest goes to the Real Estate Foundation of B.C.
Deposit vs. down payment
These are not the same thing, and mixing them up throws off your budget. The deposit is paid early — typically within 24 hours of subject removal — and is what makes the deal binding. Your down payment is the full cash contribution you bring at completion. The deposit is credited toward your down payment when the sale completes, so it is not an extra cost on top.
When your deposit is at risk
After subjects come off, the deposit is exposed
If you remove your subjects and then fail to complete — for example, financing collapses after the financing subject is already gone — the seller may be entitled to your deposit, and potentially more. A buyer who wrote a subject-free offer and then cannot complete is similarly exposed.
If the buyer and seller disagree over who is owed the deposit, the brokerage generally cannot release it without both parties’ written agreement or a court order. It simply stays in trust until the dispute is resolved.
When it is due
The deposit is usually payable on, or within 24 hours of, subject removal — the same moment the deal becomes firm. See how that fits the rest of the process in the buyer timeline.
GeoHouse is a technology company — not a licensed real estate brokerage, REALTOR®, lawyer, or financial advisor. This article is general education about how the process works in British Columbia, not advice for your specific transaction. Rules and figures change; confirm current details through the official sources linked above and consult a licensed REALTOR®, mortgage broker, lawyer, or notary before making decisions.