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fourth in a series of tips on buying and selling real estate: Despite what many buyers of resale homes and condos believe, interest isn'y automatically paid on a deposit in a real estate transaction. They only get interest on their deposits if a clause saying that appears in the Offer to Purchase. Then three criteria must be met - the deposit is at least $5000; closing is at least thirty days away; and the buyer provides his or her Social Insurance Number. A $5000 deposit and a thirty-day closing aren't legal requirements, but they're the minimums to buy a term deposit. And your Social Insurance Number is needed so that you can be sent a T5 slip after closing, since the interest earned on a deposit is taxable. Builders don't often pay interest on deposits when buying a brand new home - but it can be negotiated into the contract. When it comes to interest on deposits, remember - if it's not in the offer, it's not in the deal. Tip No. 1: Buy First Or Sell First? Tip No. 2: The Advantages Of A Resale Home Tip No. 3: The Marketing Plan Tip No. 5: What Are The "Usual Adjustments"? Tip No. 6: Insuring Your Mortgage Tip No. 7: Home Insurance Tip No. 8: Choosing A Lawyer Tip No. 9: The Offer To Purchase Tip No. 10: Home Inspections Tip No. 11: Surveys Tip No. 12: The Counter Offer Tip No. 13: Conditional Offers Tip No. 14: Why Buy A Brand New Home? Tip No. 15: Deposits - A Vital Part Of Every Deal
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