Definition
A fiduciary deposit is the sum paid by the buyer at purchase offer signing to demonstrate good faith and seriousness. It is typically between $5,000 and $25,000, depending on property price and local practice.
The deposit is remitted to an independent third party: the notary mandated for the transaction or, in the case of a transaction involving an OACIQ real estate broker, to the listing broker (in a trust account). It is not given directly to the seller.
At closing, the deposit is applied toward the down payment. If the transaction does not proceed because a suspensive condition (financing, inspection) is not met, the deposit is refunded in full. If the buyer withdraws after conditions are lifted, the seller may claim the deposit as damages, subject to Quebec law.