Deposit cheque for a conditional offer

[holymoly]

Thanks to everyone who gave me advice regarding a recent conditional offer, including buying using LOC. I had the inspection on the weekend and have decided not to proceed with the purchase. I contacted the agent and he said he will fax through paperwork to sign to say that the offer is not proceeding (I forgot what this form is called), and that he`ll request a refund of my deposit cheque once the seller and I have both signed the form.

I`m under the impression that he shouldn`t have deposited the cheque until the condition was waived. He says he must deposit it within 48 hours of receiving it. Does anyone know which it is? Thanks.

 

[RedlineBrett]

Depends on the term but usually the initial deposit is cashed right away and then becomes `non refundable` once conditions are waived. The initial deposit is then refunded to you when you choose not to waive a condition under the appropriate circumstances.

They are deposited to ensure you act in good faith during the condition period. If you try and walk without a good reason the vendor can sue and the initial deposit cheque is held up in a lawyers trust account as a result.

 

[holymoly]

QUOTE (RedlineBrett @ Oct 26 2009, 04:29 PM) Depends on the term but usually the initial deposit is cashed right away and then becomes `non refundable` once conditions are waived. The initial deposit is then refunded to you when you choose not to waive a condition under the appropriate circumstances.

They are deposited to ensure you act in good faith during the condition period. If you try and walk without a good reason the vendor can sue and the initial deposit cheque is held up in a lawyers trust account as a result.

Thanks for the info, very helpful!