CostYour offer is accepted, and buried in the agreement is a deposit due within 24 hours — a real, immediate cash requirement that catches buyers off guard if they haven't arranged the funds in advance.
$700,000 offer, typical deposit
| Typical deposit (varies by market, often 1-5%) | $14,000–$35,000 |
| When it's due | Within 24 hours of acceptance, per the agreement |
| Where it goes | Held in trust by the brokerage or lawyer |
| Applied toward | Your down payment at closing |
What usually happens
The deposit amount and deadline are negotiated as part of your offer, and once the seller accepts, that deadline is a real contractual obligation, not a suggestion — missing it can put you in breach of the agreement. The money is held in trust, typically by the listing brokerage or a lawyer, and isn't released to the seller at that point; it simply sits in trust until closing, when it's applied toward your total down payment.
How to be ready before you even make an offer
- Have deposit funds in an accessible account before you start offering — a certified cheque or bank draft is standard, and arranging one takes time you won't have once the clock starts.
- Know your bank's certified funds process in advance — some banks need a day's notice to issue a large bank draft, which can conflict directly with a 24-hour deadline.
- Confirm exactly where the deposit needs to be delivered — to the listing brokerage, your own agent, or a lawyer, since the process varies by transaction.
Who to ask
Talk to your realtor before you're in an active offer about your specific market's typical deposit size and timeline expectations, so you're not solving this for the first time under pressure. Confirm with your bank in advance how quickly they can produce certified funds or a bank draft for the amount you're planning to offer.
Once you know your deposit and down payment plan, see your full picture on the mortgage payment calculator.