Ottawa Home Purchase Deposits: Trust and Release Questions

Published October 2, 2026 · Meysami Law Professional Corp. · Ottawa

A purchase deposit deserves its own review before money changes hands. For an Ottawa buyer, the important questions include who will hold it, what the signed agreement requires, and what happens if the transaction does not close. A deposit held in trust is not a promise that every disagreement or loss is insured. Review the complete agreement and payment arrangements before assuming the money can be recovered.

Read the payment terms before committing

Locate the deposit clause in the agreement and any amendments. Make a written checklist of the amount, recipient, due date, permitted payment method and any conditions affecting the transaction. Ask the agent and lawyer to explain unclear wording before signing or waiving a condition. Do not substitute a general rule found online for the terms of your own contract.

Confirm the trust-holder and instructions

Identify the brokerage or other recipient named in the agreement and confirm the account and payment procedure directly through a trusted contact. If a payment instruction changes unexpectedly, pause and verify it before sending funds. Keep the deposit receipt, proof of payment and the version of the agreement in effect at the time. These records will help the lawyer reconstruct what happened if a question arises.

Ask about interest and trust terms

RECO's disclosure bulletin requires brokerages to explain in writing the terms on which trust money is deposited, including whether the account earns interest and the interest rate the brokerage receives. Ask what the written arrangements say about interest and any entitlement to it. The fact that money is in a trust account does not, by itself, answer who receives interest or when money may be released.

Separate insurance protection from a deposit dispute

RECO describes consumer deposit insurance for certain losses involving a registered brokerage, including insolvency, theft, fraud or misappropriation. Policy limits and exclusions apply. RECO expressly says this coverage does not resolve a failed transaction where the parties simply disagree about disbursement. Avoid treating insurance as a guarantee that backing out of a purchase will result in a refund.

Understand why release may take a separate step

Where ownership of a deposit held by a brokerage is disputed, RECO says release requires the appropriate mutual consent or release signed by buyer and seller, or a court order. Whether you are legally entitled to the money is a different question from whether the trust-holder can release it immediately. Before signing a release, have the lawyer review both the deposit direction and any wording settling other claims.

Prepare an Ottawa transaction file for advice

Bring the accepted offer, schedules, amendments, condition notices, deposit receipt and relevant correspondence. Identify every upcoming date and the specific question: payment, a failed condition, closing difficulty or release. For example, if financing has become uncertain, the useful first step is a prompt review of the financing condition and deadlines, rather than an assumption that the deposit is automatically refundable. Builder and pre-construction deposits need separate review; do not assume resale arrangements apply.

This article is general information as of October 2, 2026, not legal, tax or financial advice. Rules and circumstances can change. Contacting the firm does not create a lawyer-client relationship.