I have only purchased properties in Perth where the most i paid as a deposit to the agent was $1000 for a $220k sale.
Im now looking to buy interstate and wanted to know what usual deposits were? Are some state's set at a % of contract price etc?
Also from my basic research so far, seems like the Perth/WA contract for sale is a relatively easy process/document compared to other states eg. NSW. Could i also please get some notes on the differences on the states from those that have experienced cross border purchases.
I appreciate your comments.
Thanks.
Was the $1000 paid prior to signing the contract for sale or provided after the signing of the contract? Even at auction, 10% is required unless you have made prior arrangements.
NSW & Vic both require 10%, less by negotiation. Qld I think is the same.
provided after signing contract for sale.
In QLD the deposit is whatever you can negotiate; it's part of your offer. I have bought on as little as $500 deposit. Of course, when I'm selling, nobody gets away with that! ; )
Warmest regards, Tracey
Tracey's right. In fact you can have a legally binding contract with no deposit. I've been involved in dozens of no deposit contracts over the years.
Last purchase was 270,000, and as a condition of our offer we said we would pay 1000 deposit, and it was accepted ,no questions asked. It really boils down to what you are prepared to offer, and what the vendor will accept.
Tools
Bob and Tools, what state? So far sounds like QLD is similar to Perth.
On a separate thread be careful not to offer more than 10% of the purchase price by way of deposit to make the deal sound more appealing to the Vendor.
Doing this triggers problems if the settlement does not take place on the due date as the Vendor can consider the Contract an Installment Contract.
Richard Taylor | Australia's leading private lender
Hybrid2007 wrote:Bob and Tools, what state? So far sounds like QLD is similar to Perth.Victoria
Tools
Queensland
Recently purchased in QLD on a $1000 deposit. I am in NSW an the standard here is 10%. I put an offer in with $1000 deposit which the vendors solicitor advised against accepting, saying they wanted 10%. We settled on 5%. Apparently (and someone with more knowledge will be able to provide further info) there has been a recent case in NSW where the purchaser pulled out of a deal and the vendor was not able to persue the balance of the deposit to the 10%. From memory this was upheld by the court. Sorry I am not able to recall all the details. The end result is that the solicitors are now strongly advising to only accept the full 10% deposit, at least that is how it is here in regional areas.
Cheers
Tammy
You must be logged in to reply to this topic. If you don't have an account, you can register here.
