While negotiating an Agreement of Purchase and Sale as a potential Buyer, the Seller (or the Seller's real estate agent) will ask you for a deposit. This is a "good faith" amount of money that shows the Seller that you are in a financial position to be able to purchase their property.
The down payment is a combination of your deposit along with the remaining dollar value of funds that make up the difference between your purchase price and the amount of mortgage on the property you are buying, payable to the Seller on closing. The total of your mortgage(s), your down payment and your deposit(s) should equal the total selling price.
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