Who holds my deposit after my offer is accepted in Ontario?

In Ontario, once an offer is accepted, the deposit is held in a trust account maintained by the listing brokerage — not the seller personally. Real estate brokerages are required by the Real Estate and Business Brokers Act to maintain a separate trust account for client funds, which provides a layer of protection for both buyer and seller.

The deposit sits in trust until closing, at which point it is applied toward the purchase price. If the deal falls apart because a condition was not satisfied and is properly waived out, the deposit is typically returned to the buyer. If the buyer fails to close without a valid legal reason, the seller may be entitled to retain the deposit as compensation, and may also have grounds to sue for additional damages.

Disputes about who is entitled to the deposit after a collapsed deal can become contentious. The brokerage generally will not release the funds until both parties agree in writing or a court orders otherwise. A real estate lawyer can help you understand your position if a deal falls through.