New Construction | The purchase
Deposits on a New Home
The largest sum most buyers hand over before completion, and the one they understand least well.
The short answer
A deposit is part of the purchase price paid early, not an additional cost, and it is credited at completion. It should be held in trust. What puts it at risk is removing subjects and then failing to complete, which can cost you the deposit and more.
It is not an extra cost
A deposit is part of the purchase price, paid earlier. It reduces what you owe at completion by exactly the amount you paid.
What it changes is when you need the money, which for a presale can be years before you get the keys.
Where it should be held
In trust, not with the seller directly. On a presale, deposit money is required to be held in trust by a trustee, which is one of the more meaningful protections in the whole arrangement.
Confirm who holds it and on what terms. This belongs in the contract, and your lawyer will check it.
What actually puts it at risk
Removing subjects and then not completing. Once conditions are removed the contract is firm, and failing to complete can cost you the deposit and expose you to further claims for the seller's losses.
This is why the subject period exists and why waiving conditions to win a competitive offer is a genuine risk rather than a formality.
Read next
Common questions
Is the deposit on top of the purchase price?
No. It is part of the price, paid early and credited at completion. It affects when you need the money rather than how much you need in total.
Can I lose my deposit?
Yes, most commonly by removing subjects and then failing to complete. At that point the contract is firm, and failing to complete can cost the deposit and expose you to further claims. That is the real reason the subject period matters.
Who holds my deposit?
It should be held in trust rather than by the seller. On a presale, deposits are required to be held in trust by a trustee. Confirm the arrangement in the contract and have your lawyer check it.
Where these figures come from
- VanPlex active listings, MLS® data
Active townhouses, half duplexes, and row houses built in the last two years across Metro Vancouver and the Fraser Valley.
Checked
See what is on the market
Every home in this search was built in the last two years, so everything in this hub applies to it. Filter by price, bedrooms, parking, and distance to a station.