About to buy IP agent demands 10%

Ok so i found a IP ,in NSW in Lithgow a few hours out of Sydney.

I got pre approval from the Bank and went looking and want to buy the unit.

i do want to buy the property and the selling agent wants 10 per cent deposit,i recall only ever paying 1.25% the last time i bought a IP.

HE DEMANDS 10 PER CENT he said or he wont sell.

i will recall last time the conveyancer telling me 1.25 is ok because its not sold until contracts are signed anyway?

what would you do next ?

obviously i will contact a conveyancer but...does he really need 10% down now ?

is he bluffing me? because i think i recall that even if i put the 10 per cent down he can still sell to someone else?

 

I think NSW in general it is 10%. But I might be wrong.

 

Usually a 10% deposit on exchange of contract. You can negotiate a lower deposit sometimes though. Otherwise sometimes there is a holding deposit which you might be thinking of which you can pay prior to exchange to give you time to do building and pest reports and due diligence, etc.

 

My solicitor told me that 10% isn't legally require in NSW so I said to the agent where would you like the 5% deposit. I was paying asking price though so had some room for negotiation left. RE didnt have a problem with it.

 

yes he wants 10 per cent holding deposit....too much

 

What about the cooling off period 5/10 days?

 

Last few purchases I have made I've only offered flat $5k deposit. No comment from agent or vendor, accepted in each case. Why pay more than you have to? I think this would likely only be a real issue in a hot market/multi offer scenario.

 

Why would you buy Lithgow?
I went through the town a few days ago and it’s terrible.
First thing I noticed was 80% of the people in the main street were old pensioners and the rest were dodgy looking ice addicts looking through the garbage bins.
Only reason we stopped there was because my wife wanted to get something to eat, the town is dead.
Anyway, I googled the town while wife was eating to see why it was so weird and the reviews confirmed all, it’s a no go zone and since the BHP steel industry moved to Port Kembla, the town has gone downhill in a big way and will never recover.
Everyone is moving out, apart from the old pensioners and ice addict vultures.
High unemployment and high crime.

 

The vendor has that right.
Vendor doesn't have to sign anything he doesn't want to.
Maybe he has been stuffed around before by accepting a contract with a very low deposit.
Maybe it is not worth it to him/her to take the property off the market on a weak contract with only a couple of thousand dollars refundable deposit.
Marg

 

1.25% on contract, 10% at expiry of cooling off is the norm when I bought in NSW