I am a conveyancer on the north shore and I find that there are some agents around that are asking for purchasers to leave a holding deposit. Under a contract for sale in NSW a holding deposit is usually only left if you are signing a contract with a cooling off period. This means that you sign a contract with the agent and then have 5 days to get your reports and see your conveyancer about the contract. This deposit under the contract is usually 0.25% of the purchase price. However this deposit is only paid on signing the contract and after an offer has been accepted. And yes it forms part of your formal deposit which will be paid following the expiration of the 5 days cooling off period.