The amount of money to be paid by the purchaser to the seller upon the signing of the agreement of sale. The agreement of sale specifies the down payment amount and will acknowledge receipt of the down-payment. The down- payment is the difference between the sales price and maximum mortgage amount. The down-payment may not be refundable if the purchaser fails to buy the property without good cause. If the purchaser wants the down-payment to be refundable, he should insert a clause in the agreement of sale, specifying the conditions under which the deposit will be refunded, if the agreement does not already contain such clause. If the seller cannot deliver good title, the agreement of sale usually requires the seller to return the down-payment and to pay interest and expenses incurred by the purchaser.
« Back to Glossary Index
« Back to Glossary Index