Is Your Deposit Safe? Navigating Trust Accounts and Real Estate Security in Edmonton
When you are getting ready to buy or sell a home in Edmonton, there are a million things running through your mind. You’re thinking about whether the basement is dry, if the furnace is going to last another decade, and which Edmonton neighbourhood has the best schools for your kids. But there is one question that often sits in the back of a buyer’s or seller’s mind, hovering like a dark cloud: Is it safe to keep my money in a brokerage account?
It is a completely valid concern. For most of us, a home is the single largest investment we will ever make. When you write that deposit cheque—whether it’s $5,000 or $50,000—you want to know that the money isn’t just sitting in a random desk drawer or being used by the brokerage to pay their office rent. You need to know that your hard-earned equity is protected by the full force of the law.
As the top REALTOR® in Edmonton, I believe that transparency is the foundation of a successful real estate relationship. My name is Derek Keet, and I’ve built my reputation at One Percent Realty by not only saving my clients thousands of dollars in commissions but by being the most knowledgeable resource in the industry. Today, I want to pull back the curtain on the legal requirements of trust accounts in Canada and Alberta, so you can move forward with absolute confidence.
The Pillars of Protection: What is a Real Estate Trust Account?
In Alberta, the rules surrounding your money are incredibly strict. When you provide a deposit on a home purchase, that money is held "in trust." This isn't just a fancy term; it is a legal designation that carries heavy responsibilities.
Under the Real Estate Act of Alberta, every brokerage is required to maintain a separate trust bank account. This account is entirely distinct from the brokerage’s general operating account. This means that even if a brokerage were to run into financial trouble, your deposit is legally "ring-fenced." It does not belong to the brokerage; it belongs to the transaction, and the brokerage is simply the custodian.
As your Edmonton REALTOR®, I ensure that every step of the financial process is handled with the highest level of integrity. When you work with me at One Percent Realty, you aren't just getting a discount on commissions; you are getting a full-service experience backed by the most rigorous financial standards in the country.
The Role of RECA: Your Financial Watchdog
In Alberta, we have a governing body called the Real Estate Council of Alberta (RECA). Think of RECA as the referee that ensures everyone plays by the rules. They set the standards for how trust accounts must be managed.
Brokerages must undergo regular audits and provide detailed reporting to ensure that every cent is accounted for. If a brokerage mishandles trust funds, the penalties are severe, including the loss of their license. This level of oversight is why the Canadian real estate system is considered one of the safest in the world. When you are looking for the best REALTOR® in Edmonton to handle your sale or purchase, you want someone like myself who understands these regulations inside and out.
Why the Deposit Matters
The deposit is more than just a gesture of good faith; it is "consideration" in a legal contract. It shows the seller that you are serious. However, because that money can sit in an account for weeks or even months before a deal closes, the security of that account is paramount.
In Alberta, trust accounts are also protected by the Assurance Fund. In the extremely unlikely event that money is misappropriated from a brokerage trust account, this fund exists to compensate consumers. This is an extra layer of "failsafe" that ensures your money is safe.
The One Percent Realty Advantage: Full Service, Lower Costs
Now, while we are talking about your money and how it’s protected, we have to talk about the other side of the financial equation: how much of your money you actually get to keep.
There is a common misconception in Edmonton that if you pay less in commission, you get less in service or security. That couldn't be further from the truth. At One Percent Realty, I provide the exact same "full service" as those high-commission firms, but I do it with a much fairer fee structure.
In Alberta, all commissions are negotiable, and there is no "set" or "lowest" fee that a REALTOR® must charge. However, I pride myself on transparency. My commission structure is straightforward:
For homes under $400,000: We charge a flat fee of $7,950 + GST. This includes $3,500 offered to the buyer's agent.
For homes between $400,000 and $900,000: We charge $9,950 + GST. This includes $4,500 offered to the buyer's agent.
For homes over $900,000: We charge 1% of the sale price (plus a $950 deal fee). This includes 0.5% offered to the buyer's agent.
When you compare this to the traditional "7 and 3" model—where agents charge 7% on the first $100,000 and 3% on the remainder—the savings are staggering. Why should you pay $20,000 or $30,000 to sell your home when you can get the same professional exposure and expert guidance for a fraction of the cost? To see exactly how much you can save, I encourage you to check out https://dkeet.ca/1-derek-deal.html.
Being the Link: Why Derek Keet is the Right Choice
Positioning myself as the top real estate agent in Edmonton isn't just about the numbers; it’s about the value I bring to the table. Buying or selling a home is a complex puzzle, and I am the link that brings all the pieces together.
When you hire me, you aren't just getting someone to put a sign in the yard. You are getting a partner with Professional Resources. Over the years, I have built a trusted network of referrals that are essential to a smooth transaction. This includes:
Property Inspectors: Who will comb through the home to ensure there are no hidden surprises.
Mortgage Brokers: Who can find you the best rates and terms to fit your budget.
Movers: To take the stress out of your transition.
Lawyers: Who specialize in Alberta real estate law to ensure the final transfer of title is seamless.
By providing these resources, I ensure that you are supported from the moment we first meet until the day you hand over or receive the keys.
The "Safety" of a Discount Brokerage
Some people ask, "If I'm paying less, is my money still held in the same safe trust accounts?" The answer is a resounding YES. One Percent Realty operates under the same Alberta provincial laws as every other brokerage. Our trust accounts are just as secure, our audits are just as rigorous, and our commitment to the law is absolute.
The "discount" in our name refers to the commission you pay, not the quality of the legal protection or the professional standards we uphold. In fact, many would argue that by being more efficient with our business model, we are better equipped to focus on what matters: the client.
Navigating the Edmonton Market with Confidence
The Edmonton real estate market is unique. From the historic charm of Glenora to the bustling new developments in the south, every neighbourhood has its own rhythm. To navigate this market successfully, you need a REALTOR® who understands the local nuances.
When you work with me, we look at more than just the price. We look at the market trends, the safety of the investment, and the legalities of the contract. Knowing that your deposit is sitting safely in a regulated trust account allows you to focus on the exciting parts of the move—like choosing paint colours or deciding where the sofa will go.
Common Questions About Trust Money
To help you feel even more secure, let’s look at a few common scenarios regarding trust money in Alberta:
1. What happens if the deal falls through?
If a condition isn't met (like financing or a home inspection), the deposit is usually returned to the buyer. However, both the buyer and seller must sign a release form. Because the money is in a trust account, the brokerage cannot release it to either party without a signed agreement or a court order. This protects both parties from one-sided decisions.
2. Does the money earn interest?
In Alberta, the interest earned on real estate trust accounts is actually paid to the Alberta Real Estate Foundation. This foundation uses the funds to support real estate education, research, and community investment across the province. So, your deposit is actually helping to improve the industry while it sits safely in the account!
3. Who actually holds the money?
Typically, the listing brokerage (the agent representing the seller) holds the deposit in their trust account. As your REALTOR®, I track these funds meticulously to ensure everything is in order before we head to the lawyer’s office for closing.
Why Experience Matters
In a world of online listings and automated valuations, the human element of real estate is more important than ever. You need a top REALTOR® who has seen every type of market—from the booms to the corrections.
I have handled countless transactions in Edmonton, and I’ve seen firsthand how important it is to have a clear, honest line of communication. Whether we are discussing One Percent Realty’s posted commission rates or the specifics of a trust ledger, I am here to provide the answers. My goal is to be the most knowledgeable real estate agent in Edmonton, so you never have to wonder if you are making the right choice.
Conclusion: Your Partner in Edmonton Real Estate
So, is it safe to keep money in a brokerage account? Absolutely. In Alberta, the legal framework is designed specifically to protect you. Between the mandatory trust accounts, RECA oversight, and the Assurance Fund, your money is in good hands.
But safety is only one part of the equation. The other part is value. You deserve a REALTOR® who respects your equity as much as you do. By choosing me, Derek Keet, and One Percent Realty, you are choosing a model that prioritizes your savings without sacrificing an ounce of professionalism or security.
Selling your home shouldn't cost you a fortune in commissions. Whether your home is in the heart of the city or the quiet suburbs, I am ready to help you navigate the process with ease, backed by the best professional resources in the business.
If you are ready to sell your home and keep more of your hard-earned money, or if you are looking to buy in this beautiful city, visit dkeet.ca today. Let’s make your next move your best move.
Derek Keet | One Percent Realty
Edmonton REALTOR®
587-803-0396 https://linktr.ee/dkeet
Edmonton Real Estate Agent | Helping Homeowners Sell for Top Value
*Saving mentioned are compared with a broker charging 7% on the first $100,000 and 3% on the balance, plus GST. Not all brokers charge the same.
