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In Victoria, a seller can ask for a deposit when a buyer makes a property offer. Typically, this is a small amount between $1,000 and $5,000 and is known as a holding deposit. This is held while the agent prepares the offer and presents it to the Vendor for acceptance or rejection.
Where an offer is rejected, the money is refunded to the Purchaser. Where accepted, this will form part of the total initial deposit which is usually a percentage of the purchase price, typically negotiated between 5% and 10%, and is paid by the buyer to the seller or their real estate agent as a show of good faith and commitment to the purchase.
If the offer is accepted, the deposit is held in a trust account, typically by the real estate agent, until settlement, at which point it is credited towards the purchase price. Specific terms regarding the deposit are outlined in the Contract of Sale which can be prepared by a conveyancing professional. It is recommended that buyers have a conveyancer review the Contract of Sale prior to making an offer on a property.
If you need a reliable and professional conveyancers in Victoria, don’t hesitate to contact us on 03 8456 6797 for more information.
