BLOG

All About Deposits! How Much Do I Need To Pay & When?

How much deposit you pay comes down to a negotiation between you and the seller.

THERE ARE NO RULES!

Often buyers negotiate to pay a nominal deposit when they first sign the contract e.g. $1000 or enough to cover the cooling off penalty (.25% of the purchase price) and then a further instalment of deposit at a later date upon the happening of an event e.g. $10000 payable upon finance approval. Alternatively a further deposit could be payable on a fixed date.

 

A deposit can be as little as nothing or as much as 10% of the purchase price. In our experience it is often enough to cover the real estate agents commission which is usually around 2.5 to 3 % of the purchase price.  Whatever the amount it is imperative that you pay the deposit on the date it is due. If you fail to pay the deposit on the date it is due then this will constitute a default by you under the contract.  This would then give the seller the right to terminate the contract and sue you for damages and various other things.

 

Contact GM Lawyers below if you would like any more information on this subject –

📩 law@gmlaw.com.au    07  3844 0188