Bank Draft when offer isn't accepted

mrwally wrote: ↑ As I understand it, when putting in a bid on a house (resale), you need to include a rather hefty deposit in the form of a bank draft. When I've purchased in the past, I was the only offer so it wasn't a problem. However, if it's a multiple offer situation, and you make out the bank draft to the seller's realtor trust account, what happens if your offer isn't accepted?

Do I get the bank draft back and I can deposit it back into my bank? Can I even just deposit it as it's not made out to my name? I assume it isn't good for an offer on another place as it's been made out to a trust account...so I'll have to pay the bank for another one? Doesn't this get pricey if you have to do this multiple times on different houses?

mrwally wrote: ↑ As I understand it, when putting in a bid on a house (resale), you need to include a rather hefty deposit in the form of a bank draft. When I've purchased in the past, I was the only offer so it wasn't a problem. However, if it's a multiple offer situation, and you make out the bank draft to the seller's realtor trust account, what happens if your offer isn't accepted?

Do I get the bank draft back and I can deposit it back into my bank? Can I even just deposit it as it's not made out to my name? I assume it isn't good for an offer on another place as it's been made out to a trust account...so I'll have to pay the bank for another one? Doesn't this get pricey if you have to do this multiple times on different houses?

CdnRealEstateGuy wrote: ↑ You just go back to the branch and deposit it...no issues.

I get free bank drafts from TD. Hopefully you bank doesn't charge much for cert cheques or bank drafts/

mrwally wrote: ↑ It'll be from PC Financial...so this could be an "issue". I'll have to ask them what to do when I call to get it.

mrwally wrote: ↑ It'll be from PC Financial...so this could be an "issue". I'll have to ask them what to do when I call to get it.

rb wrote: ↑ You could make your offer out and say you'll provide a draft within 24hrs of acceptance ...I've done that in the past , and explain to the buyers why

mrwally wrote: ↑ It'll be from PC Financial...so this could be an "issue". I'll have to ask them what to do when I call to get it.

blitzteen17 wrote: ↑ Also with PCF. From what I remember, a bank draft costs about $20. However, it can take up to 1 business day. When I phoned in a while back the lady said you could potentially do a same day rush...call in morning to order and pick it up in the afternoon from any CIBC branch. IMO that was a bit risky so I just opened up an account at a brick and mortar bank.

Sam9876 wrote: ↑ +1
Also done this. Made offer without draft. The draft would have been completely useless anyway since even the deposit amount was changed while negotiating. Went to get the draft the next day. In your agreement offer, in the deposit section, it is generally mentioned that, "upon acceptance", deposit will be delivered to the deposit holder within 24 hours of acceptance of agreement.

Jon Lai wrote: ↑ I've never heard that before, was your deposit amount very small or something?

Sam9876 wrote: ↑ Yes, the seller wanted more in deposit that I was offering initially.

mrwally wrote: ↑ Thanks for everyone's input. I do have an account with BMO specifically for this kind of thing, however in order to transfer the money, I'd have to deposit a cheque from my PCF account and it would take 5 days to clear.

I like the idea of saying I'll provide it after the acceptance.

Unless someone knows of a way to get approx $25k from PCF to BMO the same day with no hold on the funds? I don't think EMT can be used for that much money?

Jon Lai wrote: ↑ when are you providing the offer?

When things like this happen it's good to prepare ahead of time and have the funds already sitting in your account ready to make the bank draft at any time.