Trust cheques are a routine part of real estate transactions, but the funds are not always immediately available once deposited. Financial institutions, including banks and credit unions, may place temporary holds on trust cheques, wire transfers, certified cheques, or bank drafts while they verify funds, manage fraud risk, or complete anti-money laundering checks.
In some cases, these holds can last up to eight business days, and sometimes longer for large or out-of-province cheques.
For REALTORS®, this can create real challenges if funds aren’t available when needed. Closing delays can occur, and buyers or sellers may become frustrated if a transaction can’t complete on time.
The best way to avoid problems is simple: plan ahead. Encourage clients to provide trust cheques or arrange wire transfers well in advance of closing, allowing enough time for the funds to clear. Remember, a deposit is not considered received until the funds are available in the brokerage trust account.
For Managing Brokers, it’s also a good idea to communicate early with your financial institution about large transactions and understand their hold policies. Even a short conversation can help avoid surprises.
The bottom line: trust cheques are common, but they’re not guaranteed funds. Planning ahead helps ensure smooth closings and avoids unnecessary stress for you and your clients.
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