Deposits
-accompanies most, if not all, offers to purchase
-can be as little as $1000 and as big as $20,000+ (IMO usually $3000-5000 works) and are written by cheque (made payable to listing brokerage) and included with offer to purchase
-is deducted from the total purchase price/downpayment
-shows sincere interest in completing the purchase
-cashed only on the accepted offer and usually the next business day and held in trust
-completely refundable without deduction as long as the condition benefiting the buyer (ie:obtaining mortgage financing by a specific date and time) has not been satisfied
PDS (property disclosure statement)
-list of 19 questions pertaining to the property condition answered by the seller to the best of their knowledge
-can be requested as a condition benefiting the buyer, although usually waived if provided by seller already, if an inspection has already been done or if in competition with other offers
Mortgage Financing
-the most important condition benefiting a buyer
-protects the buyer from losing the deposit if a mortgage cannot be obtained on a given property due to overpriced offering
-without this clause to protect you, if you offered a price for the property and the bank did an appraisal and found that the property was not saleable at that price, they would reject that mortgage application and you would have to pay the difference between their appraisal price and the offer price
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