What, when and who do you pay?

A deposit (usually 10% of the purchase price) must always be paid to the trust account of the selling agent or the vendor’s lawyers. Never pay the deposit directly to the vendor. The deposit will generally be held in trust until settlement of the contract takes place.

However, in certain circumstances the deposit may be released to the vendor before settlement. If a purchaser defaults under the contract of sale and can’t complete settlement, the vendor may be entitled to terminate the contract and keep the deposit.

If you have any concerns or questions about a deposit, head to our Advice Centre, where you can upload a contract and get some answers.