Deposit Provisions in the Standard Agreement (Ontario)

By
Commercial Real Estate Agent with RE/MAX West Realty Inc., Brokerage (Toronto)

Deposit Provisions in the Standard Agreement

“DEPOSIT: Buyer submits............................ (Herewith/Upon Acceptance/as otherwise described in this Agreement)……”.

There were three choices with respect to the timing of the delivery of the deposit:

1)    Herewith,

2)    Upon Acceptance, and

3)    As otherwise described…

Herewith meant “now”, with the submission of the actual Offer. Sometimes, that wasn’t appropriate since funds were not immediately available.

Upon acceptance was defined in the Agreement as follows:

“Upon Acceptance” shall mean that the Buyer is required to deliver the deposit to the Deposit Holder within 24 hours of the acceptance of this Agreement.

That provision was clear, it meant no later than 23:59:59 hours. The full 24 hours would be one second too late.

“As otherwise described” would be the preferred choice in most cases. The Buyer could make arrangements for a certified cheque or a bank draft, but that could take an additional day or two. How much time would depend upon the actual circumstances.

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