Commercial Real Estate Deposits in Alberta

1. Define amount, timing and purpose

State the initial deposit, additional deposits, due dates, payment method and whether each amount is credited on closing. Align increases with acceptance, document delivery, condition removal, extensions or other objective milestones.

Assess deposit size with price, diligence period, exclusivity, seller carrying cost, financing and buyer evidence. There is no Commercially-published standard Alberta percentage.

• Initial amount
• Increase schedule
• Payment deadline
• Holder
• Trust terms
• Closing credit

2. Put the trust terms in writing

Alberta's Real Estate Act requires written trust terms agreed to by the parties when money is held in trust. Those terms govern custody and permitted disbursement; a marketing statement or verbal assurance is not a substitute.

Identify the holder, account, interest treatment, fees, required directions, closing application and the process for termination, default or dispute. Counsel should reconcile the offer, trust wording and closing instructions.

3. Understand brokerage deposit timing

The current Real Estate Act Ministerial Regulation states that trust money received in relation to an offer to purchase must be deposited within three business days after acceptance of the offer, and other trust money generally within three business days of receipt.

The timing rule does not determine whether a payment was due, whether the agreement is binding or who ultimately receives the funds. Those are separate contractual and legal questions.

4. Do not infer refundability or forfeiture

A deposit is not automatically refundable because a transaction is conditional, and it is not automatically forfeited because a buyer does not close. The agreement, facts and applicable law control refund, release, damages and remedies.

Avoid casual labels such as hard, secure or non-refundable without legal review. State the events, notices and authorizations required for disbursement and how a dispute will be handled.

5. Coordinate conditions, extensions and defaults

Link deposit changes to exact condition and extension milestones. If an extension requires more money or changes release terms, document the amendment before the deadline and confirm receipt.

Distinguish failure of a condition, buyer default, seller default, mutual termination and closing adjustment. Each can have a different deposit consequence that counsel should address.

6. Maintain FINTRAC and source records

FINTRAC requires a receipt-of-funds record when a real-estate brokerage receives any amount in the course of a transaction and prescribes transaction, remitter and account details. Identity-verification obligations can also be triggered when funds are received.

The brokerage may request legal name, address, date of birth, occupation, entity, authorization, beneficial ownership, source or payment details as required. This is compliance work, not a public assessment of the buyer.

7. Protect the payment channel

Treat emailed changes to wire instructions as a fraud signal. Independently confirm the trust recipient and account using a known phone number or in-person process, and have the receiving institution confirm requirements.

Retain the payment instrument, receipt, confirmation, trust ledger reference and correspondence. Do not send confidential banking information through an unapproved listing inquiry.

8. Reconcile closing and release

Before closing, confirm the deposit balance, interest if any, adjustments, transfer to counsel and credit on the statement of adjustments. After a termination or dispute, do not promise immediate release unless the written authority and legal requirements are satisfied.

Commercially can coordinate delivery to the brokerage's approved trust process and preserve transaction records. Commercially does not decide entitlement to disputed funds or provide legal advice on forfeiture, damages or remedies.