Once you’ve found your Dream home, submitted an offer which the Seller accepts, you have 24 hours to deliver the deposit money to the Listing Brokerages’ office. This money is known as “consideration” in legal terms and in order for the Agreement to be legally binding, there must be an exchange between two parties of something of value or service- in this case a cash deposit from the Buyer with Seller agreeing to sell their home for an agreed to price and closing on a specific date.
The deposit can be paid with a bank draft, certified cheque or money order payable to the Listing Brokerage. The Listing brokerage will issue a receipt for the deposit and the money is then placed into their Trust account. As a Buyer you can feel secure knowing your funds are placed in the Brokerages’ trust account which closely regulated by RECO (Real Estate Council of Ontario).
If a Buyer is unable to fulfill or complete all of the conditions in their offer and the Seller is not willing or able to extend the conditional period for the condition(s) then a mutual release is completed and signed by both parties relieving each party from the Agreement of Purchase of Sale. Once the Mutual release is signed by parties and their respective Brokers of record, your deposit money is refunded in full without any penalties, deductions or charges. 

Next Step: Conditions in an offer