The 24-Hour Deposit Rule

The 30-Minute Mistake That Cost a Buyer Their Dream Home

Author

Cale Botha
September 25, 2025

Most people don’t realize this, but once an offer is accepted the buyer legally has 24 hours to deliver the deposit (unless otherwise stated). This requirement is written directly into the Agreement of Purchase and Sale. If the deposit is late, the deal is technically null and void.

In most cases, sellers will overlook the rule and accept a late deposit to keep the deal alive. But buyers should be cautious, because even a small delay can sometimes cost them the entire home.

For example, I recently learned of a situation that shows just how serious this rule is.

A buyer’s deposit was due at 9 a.m., exactly 24 hours after their offer was accepted. Since the bank only opened at 9 a.m., the deposit was not delivered until 9:30. In that short time, the seller received another offer $25,000 higher and, legally, the seller accepted the new and improved offer (who wouldn’t?). The first buyer was extremely upset and considered suing, but lawyers had already confirmed they had no case because the APS clearly requires the deposit within 24 hours. The contract was clear: the original deal was dead, and there was nothing they could do but start looking for another home. Really crazy.

Why this matters

  • Buyers: Always have your deposit ready the moment your offer is accepted. Do not wait until the last minute.

  • Sellers: If a better offer comes in and the first deposit has not arrived on time, you are within your rights to move on. Just make sure to speak with your realtor/lawyer to make the best decision, as things can get complicated.

The 24-hour deposit rule is simple, but taking it lightly can cost you everything.

Note: This applies to most standard residential transactions and new builds, though specific situations can vary.

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Thank you!

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Sincerely,

Cale Botha

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