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A holding deposit is typically not refundable to the purchaser when buying a house. This deposit is paid by the buyer to the seller, or the seller’s agent, to indicate their serious intent to purchase the property. The holding deposit is typically 0.2% of the purchase price and is paid prior to signing the contract of sale.
If the buyer decided not to proceed with the purchase after paying the holding deposit, they may forfeit the deposit to the seller. However, there are some circumstances in which the holding deposit may be refundable, such as:
- If the seller fails to fulfil their obligations under the contract.
- If specific conditions are not met within a certain timeframe.
- The purchaser changes their mind after paying the holding deposit but before signing the contract.
Conveyancers can assist purchasers by reviewing the terms and conditions of the deposit agreement within the contract of sale and making the purchaser aware of their obligations prior to parting with any payments.
If you are in need of professional conveyancer in Victoria, don’t hesitate to give us call on 03 8456 6797 for more information.
