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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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
Sue Jogever
Sue Jogever
2020-08-18T09:46:40+0000
Thank you Page Conveyancing for making it happen so smoothly for both our clients sale... and purchase of their next dream home 🏡read more
Gerry Linhart
Gerry Linhart
2020-08-18T00:13:41+0000
I highly recommend Page Conveyancing. We have used these guys 3 times now and each time... it's been a hassle free, no bs experience. James knows what he is doing and communicates really well. ⭐⭐⭐⭐⭐read more
Graham Muffet
Graham Muffet
2020-07-27T09:37:44+0000
We used Page Conveyancing for the sale of our old home and the purchase of our new one.... As this can be a stressful time, James made us feel very comfortable throughout the whole process. James responded to our many questions and queries very promptly and professionally. I cannot speak highly enough of James and would highly recommend Page Conveyancing to anyone who would like to deal with a great team. Thank you so much.read more

Page Conveyancing

DX Address

DX 7447, Port Macquarie NSW 2444

Postal

PO Box 1247, Port Macquarie NSW 2444