Step 9 to Buying a Home: Your Deposit Money

Now that your offer has been accepted by the seller and we have a fully executed purchase agreement (contract), it’s time to drop off your deposit (earnest money). Deposit money usually needs to be dropped off within 1 business day of accepted agreement or whatever the contract says about the deposit. So, what is earnest money?

We will email you exactly how much the deposit should be made out for, who it should be made out to and where it should be dropped off. Generally the bank draft is dropped off at the office of the seller’s Realtor. Try to go during normal business hours to drop it off as you’ll need to get a receipt. When you get there, ask the receptionist to give you a deposit money receipt which you then need to email us. In addition, please text us after you’ve dropped off the check so we can let the seller’s Realtor know it’s been dropped off.
If you go after normal business hours or if the office is very small, there may not be a receptionist. Instead the door may be locked. If this is the case, look near the front door for a drop box where deposit money can be safely left.

Nowadays, the preferred way of sending deposit is thru wire transfer or direct deposit. The listing agent’s brokerage will send us the deposit instructions and you need to follow the directions on how to do the transfer. This is the more convenient way to do it so you don’t need to physically drop it at the office of the seller’s agent especially if it’s really far and sometimes out of the city. Either way, the receipt is important so make sure that you keep it so we can send a copy to the listing agent.

As a reminder, your deposit will be deducted from your final down payment and needs to be dropped off as agreed on the executed contract (on most cases within 1 business day after acceptance).

If you have questions, make sure you reach out!