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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Rhonda Shaw
Rhonda Shaw
2020-04-21T03:40:58+0000
Excellent service. Friendly and efficient. Kim was amazing! Highly recommended.
Matty Dobson
Matty Dobson
2020-04-17T19:56:09+0000
Amazing service, very responsive, could not recommend higher! James at Page Conveyancing... was a pleasure to deal with and very professional, he made our new house purchase contracts a breeze to go over and complete. Very knowledgeable highly recommended!read more
Tanya Lee
Tanya Lee
2020-04-07T10:33:54+0000
My husband and I have bought and sold property with Page Conveyancing.Merrillyn and Kim... were friendly and professional and made each process stress free.100% recommended:)read more
Paul McAsey
Paul McAsey
2020-04-01T03:13:03+0000
Kim from Page Conveyancing dealt with the sale of my apartment in Port Macquarie. She was... very efficient and easy to deal with. She dealt with the whole process and ironed out any bumps. As I live in Sydney, it was of utmost importance to trust and rely on Kim. She exceeded expectations. I would highly recommend Kim and Page Conveyancing.read more
Geoffrey Gillham
Geoffrey Gillham
2020-02-12T01:48:07+0000
Excellent service great communication explaining everything just very... efficient.Thoroughly recommend Page Conveyancing.read more

Page Conveyancing

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DX 7447, Port Macquarie NSW 2444

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PO Box 1247, Port Macquarie NSW 2444