DEPOSITS & TRUST ACCOUNTS
Deposits & Trust Accounts
A property transaction may require deposits and closing funds at different stages. We explain the arrangements relevant to your agreement and our retainer.
Understand where funds are held
The deposit terms depend on the agreement and transaction. Provide receipts and related documentation so the amounts can be accounted for in the closing statement.
Confirm payment instructions
Obtain payment instructions directly from our office and independently verify any request to change banking details. Ask about timing and acceptable payment methods before arranging closing funds.
Deposit obligations in your agreement
The agreement should identify the deposit amount, delivery deadline, recipient, and relevant release arrangements. A deposit forms part of the transaction’s security and should be distinguished from the balance required on closing.
Private and builder transactions
Deposit arrangements can differ in a private sale or new-build purchase. Review the actual documents rather than assume that protections or payment procedures are the same in every transaction.
Trust handling and payment records
Funds held in a law firm’s trust account are subject to professional requirements and the terms under which they are received. We discuss the relevant instructions and maintain the transaction records within the retainer.
Verify instructions before transferring
Confirm bank and payment instructions directly through a trusted contact with our office. Treat an unexpected email changing account details as a reason to verify, not as authority to send funds.
When a transaction does not complete
A failed closing or disputed deposit release can raise contractual and legal questions. Release may require an agreed direction or another lawful basis; neither party should assume that the deposit is automatically available on demand.
Send the full record
Provide the agreement, proof of payment, conditions, notices, and correspondence. We can assess the issues and discuss the scope of any advice, negotiations, or further proceedings.
Document each payment and instruction
Keep the documentary trail for the deposit separate from informal payment assurances. If a dispute arises, the agreement and directions govern the legal questions. Contact our office before issuing instructions to release or redirect funds so the authority and implications can be assessed.
Documents to prepare
- Agreement’s deposit provisions and payment dates
- Proof of payment and recipient information
- Trust directions or deposit-release correspondence
- Any notice concerning termination or a disputed closing
Let’s discuss your next step
Contact Maki Law for practical guidance on your property transaction or construction matter.
416-991-4775 · contact@maki.law
136A Avenue Rd, Toronto, Ontario M5R 2H6
MAKI LAW
Address
136A Avenue Rd
Toronto, Ontario M5R 2H6
Contact
416-991-4775
Fax: 416-981-3420
contact@maki.law
Service Areas
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General information only. Contact our office for advice about your circumstances.