With some recent media coverage surrounding brokerage trust accounts, I’ve had a few buyers quietly ask the same question:

“Is my deposit safe?”

It’s an important question and one that deserves a clear, straightforward explanation. Let’s walk through how deposits are handled in Ontario.

What Happens to a Deposit?

When a buyer submits an offer and it’s accepted, a deposit is provided as part of the agreement. That deposit is not given directly to the seller. It is held in a brokerage trust account.

Trust accounts are not the same as regular business accounts. By law, they must:

• Be kept completely separate from a brokerage’s operating funds
• Be used only for holding client deposits
• Follow strict accounting and record-keeping standards

These accounts are governed under Ontario’s real estate legislation and are subject to compliance requirements and oversight.

Are Trust Accounts Monitored?

Yes.

Brokerages in Ontario are regulated by the Real Estate Council of Ontario (RECO), which enforces rules around how trust funds are handled.

In addition:

• Detailed transaction records must be maintained
• Trust ledgers must balance
• Financial reporting and compliance standards apply

There is also a consumer protection program in place designed to help in specific cases involving brokerage misconduct.

Why the Recent Headlines?

From time to time, isolated situations make the news. When that happens, it naturally creates concern especially for buyers who may be wiring significant funds. It’s important to remember that these situations are not the norm. The vast majority of real estate transactions in Ontario close smoothly, with deposits handled exactly as required under regulation.

What You Should Expect as a Buyer

You should always receive:

• Written confirmation of where your deposit is being held
• Clear instructions for how funds are delivered (bank draft or wire)
• Transparency about timelines
• Answers to any questions you have about the process

If anything ever feels unclear, you are absolutely entitled to ask for clarification.

Lawyer Involvement Before Closing

Before closing, the transaction moves into the hands of real estate lawyers.

At that stage:

• Funds are verified
• Adjustments are calculated
• Final transfers occur through legal trust accounts

This adds another layer of professional oversight before the deal completes.

My Role in This

Part of my job isn’t just negotiating a good price it’s ensuring you feel informed and protected throughout the process. Buying a home is a big decision. Your deposit should never feel like a mystery.

The Bigger Picture

The system is designed with checks and balances. While headlines can feel unsettling, the regulatory structure around trust funds in Ontario is built specifically to protect consumers. The goal isn’t to eliminate every possible risk, no financial system can promise that, but to create strong safeguards, accountability, and recourse. And that’s exactly what exists.

Market Update

Uptick in GTA Home Sales Expected in Second Half of Year

March 4, 2026

Housing market conditions in the Greater Toronto Area (GTA) tightened in February 2026 compared to the same time last year. While sales declined year-over-year, the number of new listings dropped even more significantly. This decline in new listings aligns with recent polling results from Ipsos, which indicate that many homeowners are less inclined to list their homes in 2026.

Buyers Waiting on Price Stability

“Many would-be homebuyers are waiting for selling prices to level off before moving into the market,” said TRREB PresidentDaniel Steinfeld. “If new listings continue to trend lower through the spring, competition between homebuyers will increase, supporting home prices and a recovery in sales.”

Significant Pent-Up Buyer Demand

According to TRREB Chief Information OfficerJason Mercer, there is considerable pent-up demand in the GTA housing market. More than 100,000 potential buyers are currently holding off on purchasing a home. Many are waiting for selling prices to stabilize and for more positive developments on the trade front. Once those conditions improve, Mercer notes that the market could see substantial momentum in the second half of 2026 and into 2027.

February Market Activity

GTA REALTORS® reported 3,868 home sales through TRREB’s MLS® System in February 2026, representing a 6.3% decrease compared to February 2025.

During the same period:

• 10,705 new listings were added to the MLS® System
• This represents a 17.7% decline year-over-year

On aseasonally adjusted basis, both sales and new listings were down compared to January 2026. However, new listings declined at a faster rate than sales.

Home Prices

TheMLS® Home Price Index (HPI) Composite benchmark was down 7.9% year-over-year in February 2026. The average selling price was $1,008,968, which represents a 7.1% decrease compared to February 2025. On a month-over-month seasonally adjusted basis, both the MLS® HPI Composite and the average selling price were also slightly lower than January 2026.