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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Wendy Williams
Wendy Williams
2022-06-17T10:59:01+0000
This is the second time I have used James at Page Conveyancing and have found attention... to detail and communication excellent. I will certainly be using Page Conveyancing again in the future.👏👍read more
Marcelle Rafael
Marcelle Rafael
2022-05-20T03:28:43+0000
I have been dealing with. page Conveyancing more than once. We dealt with Marilyn Page,... James Page and Kim Shaw and found them very professional, helpful and always available at contact to happily answer any queries. We would like to extend our appreciation also to their efficient secretary Jodie.?we certainly would like to thank them and certainly recommend them to anyone who would like a legal procedure or advice purchasing or selling a property. Thank you again. Sam and Marcelle Rafaelread more
RM DK
RM DK
2022-05-02T01:57:51+0000
Great communication, Professional, understanding
Jackie McRae
Jackie McRae
2021-09-10T06:18:01+0000
My husband and I have used Page Conveyancing a couple of times for different house sales.... James Page is very professional approachable and very well mannered we have been very pleased with his approach to detail. We would highly recommend Page Conveyancing. Thankyou Colin & Jackie McRaeread more
Swell Deacon
Swell Deacon
2021-08-19T07:24:08+0000
Fantastic service by James. This is the second property he has assisted us with and he... keeps on improving. Well done. 10/10.read more

Page Conveyancing

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DX 7447, Port Macquarie NSW 2444

Postal

PO Box 1247, Port Macquarie NSW 2444