Deposit & Bonds

It is an essential condition of the contract is that the deposit is paid either before or at exchange of contracts. The deposit is usually 10% of the purchase price but can also be negotiated to be 5% of the purchase price. The deposit is held by the agent or vendors conveyancer should no agent be involved. Provided the deposit is held by the estate agent, the vendor’s Conveyancer or the vendor at or before exchange, the deposit is taken to be paid on time.

The deposit or any part of it can be paid by cheque, cash but is more often than not by bank transfer. Any cheque is acceptable as payment of the deposit, it does not have to be a bank cheque. If the deposit is not paid on time or the deposit cheque is not honoured by the paying bank then the purchaser is in breach of an essential term of the contract. The vendor can terminate the contract at any time before the purchaser makes good the deposit. If the contract provides, the deposit can be paid by instalments then each instalment must be paid on time, otherwise the vendor can terminate.

A deposit bond is basically an insurance policy. The deposit bond is the policy document that tells the vendor that the insurance company will pay the 10% deposit to the vendor in any of the circumstances where the deposit would ordinarily be forfeited to the vendor. No money actually changes hands under the deposit bond. Instead, all purchase funds are paid at settlement. In the ordinary course of events settlement takes place, the purchase price is paid in full, and the deposit bond simply lapses.

“There are numerous reasons to use a Deposit Bond. It can help avoid expensive time delays and bridging finance, enable a purchaser to buy at auction or off the plan and can allow the Purchasers savings to remain intact.”

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Casey Dwyer
Casey Dwyer
2020-11-08T05:46:49+0000
Our first time selling a property, James made the process easy and stress free. I would... definitely use again and recommend to all my friends and family.read more
Louise Lashlie
Louise Lashlie
2020-11-03T01:48:26+0000
A very professional service. Great communication and very friendly. I would highly... recommend Page Conveyancing.read more
Melissa Van Dam
Melissa Van Dam
2020-10-19T10:01:34+0000
I have used Page Conveyancing for two sales and two purchases of property over the last... 10 years. I have always found Kim Shaw to be very professional yet approachable and she has always protected my interests in all matters. I would whole hardheartedly recommend Page Conveyancing when buying and/or selling property and their rates are very reasonable.read more
Jan Babich
Jan Babich
2020-09-21T10:59:03+0000
Kim Shaw from Page Conveyancing handled my recent purchases in a professional, friendly... manner. I highly recommend Kim and Page Conveyancing to provide expert advice and a stress free service. Thank you Kim very much.Jan Babichread more
Kane Addison
Kane Addison
2020-08-28T05:59:08+0000
Page managed both my recent sale and purchase. I experienced nothing but professionalism... in both instances. Kim Shaw was fantastic to deal with and she ensured the entire engagement was managed effectively. I felt secure in the knowledge Kim was driving the process for me. Highly recommend!!read more

Page Conveyancing

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DX 7447, Port Macquarie NSW 2444

Postal

PO Box 1247, Port Macquarie NSW 2444