Understanding the need for a deposit

There are 2 types of deposits.

The first one is the seller’s deposit – here, the agent for the seller can ask you for a deposit of up to 10% of the purchase price, however this is negotiable.  In fact, in some circumstances you may not have to pay a deposit at all.  But sellers like them – why? Well, a deposit reassures them that you are a genuine buyer.

The second one is the bank’s deposit. This is either compulsory or genuine savings that will show the bank that you are capable of saving and making repayments. The NT Government, through your broker, has some amazing deals where often the buyers of residential land who are then building new homes don’t need to come up with cash deposits! These are called ‘No deposit loans’.

In relation to timing for payment of the deposit, the default position is that the deposit must be paid when the agreement for sale and purchase is signed. However, talk to our conveyancers and we can negotiate with the seller as to when to pay your deposit and how much to pay.

Need a conveyancer? Give us a call or send us an email! We can handle your residential or commercial transaction, whether you are the Buyer or the Seller.

Please feel free to call Coralie Waters on (08) 8941 6355 or email conveyancer@bowden-mccormack.com.au should you wish to discuss your property transaction needs.