Commonly accepted/Standard rate for the contract deposit for a 950K house on the Gold Coast?

Discussion in 'The Buying & Selling Process' started by Lettie_S, 30th Apr, 2021.

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  1. Lettie_S

    Lettie_S Active Member

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    Hi all,

    I'd like to know if there is a commonly accepted/standard rate for the deposit money people pay when signing the contract and when it goes unconditional?

    Does %5 sound right? too much? too little?

    I know it all depends on how you negotiate things with the vendor. Just wanted to have a ballpark figure to start my negotiations, as I am about to make an offer on a 950K freestanding house.

    Thank you.
     
  2. wylie

    wylie Moderator Staff Member

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    Generally a 10% deposit is payable the first business day after signing (at least every contract I've ever signed has been like this - Queensland), but of course, you can negotiate a lower deposit as long as it is agreed to by the vendor.

    I'd assume most agents will want enough deposit, should things go wrong, so they are holding enough to cover their fee.
     
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  3. K1200

    K1200 Active Member

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    We paid $5k initial deposit and no balance deposit on a $1.9M residential purchase recently. No one batted an eyelid.

    edit - this was in Qld using a standard ADL format contract
     
    Last edited: 30th Apr, 2021
  4. Lettie_S

    Lettie_S Active Member

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    O wow!
    Did you negotiate this through your solicitor?
    Also, was it on the Gold Coast?
     
  5. Lettie_S

    Lettie_S Active Member

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    I assume you are referring to Brissie?
     
  6. K1200

    K1200 Active Member

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    No. We sat down with the agent and drafted our offer. He asked us what deposit we wanted to pay and we said $5k. Sent the contract off to our solicitor for review, then signed it the next day. It went back and forwards to the seller a couple of times with changes to some of the conditions, but price and deposit were unchanged.
    The house is in the Lockyer Valley.
     
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  7. EK01

    EK01 Well-Known Member

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    5% should be fine, that's the most I've ever offered in Qld (GC and Brissie).

    Seller will be more interested in the offer price!
     
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  8. wylie

    wylie Moderator Staff Member

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    Yes. We've negotiated to pay much smaller deposits in the past, but have not bought anything for several years.
     
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  9. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    If a sale falls through the agent may not be entitled to any fee. This QLD case was recently concluded and was escalated (incorrectly) to higher courts (incl the High Court!!) who affirmed the agent acted illegally in taking a fee for a property sale that wasnt settled. The agent had no entitlement to a fee as the property didnt sell and broke state law in taking trust monies. ie it was akin to theft. All the proceeds for the failed sale should have been paid to the property owner. The agent may now lose their license.

    High Court throws out Sunnybank real estate agent’s appeal
     
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  10. skyfall

    skyfall Well-Known Member

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    I once paid $20 for a deposit in Queensland when I signed the contract and balance of 5% within 2 weeks. The agent just wants to make sure their commission is covered.
     
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