There are no specific requirements regarding the due date for payment or the quantum of a DEPOSIT payable on a purchase of real estate. The only definite implication is that if a deposit has not been paid within three working days of it being due and demanded, the contract may be cancelled by you as the Vendor. Generally, we suggest you follow these basic rules when it comes to dealing with the DEPOSIT on the sale of a property. Unfortunately, these also compete with the Purchaser’s concerns when it comes to the DEPOSIT:

  1. Receive as large a deposit as possible. This is because it means the Purchaser has more risk involved in their Purchase, as the deposit could be forfeited if the Purchaser is not able to complete an UNCONDITIONAL CONTRACT
  2. Have the DEPOSIT payable when the contract is signed, i.e. when the parties have agreed and a CONTRACT is formed. This means there is more impetus on the Purchaser to deal with CONDITIONS quickly and it means the release of the deposit may occur sooner than if there is a waiting period for it to be paid, i.e. until UNCONDITIONAL DATE.
  3. Ensure that the DEPOSIT is released on UNCONDITIONAL DATE as this is likely to be when you as the Vendor are liable for the Real Estate Agent’s fee.