How much deposit to hold a property??

Discussion in 'The Buying & Selling Process' started by Darlinghurst Boy, 9th Jul, 2015.

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  1. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    I saw a property i would like, but i would like to get a pest and building inspection first.

    I realise i have to put a deposit in it to hold it but the real estate agent said 10% .....???
    I havent made any offer yet so i guess its 10% of what he s selling it for ??

    Im nit going to lose 10%
     
    Darlinghurst Boy, 9th Jul, 2015
    #1
  2. JMica

    JMica Well-Known Member

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    I thought it was 0.25% and 10% when the cooling off period finishes...
     
    JMica, 9th Jul, 2015
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  3. JMica

    JMica Well-Known Member

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    Not sure if it defers from state to state, what state is the place in?
     
    JMica, 9th Jul, 2015
    #3
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    What state is it in?

    10% deposit seems too much.
     
    Jamie Moore, 9th Jul, 2015
    #4
  5. Chilliblue

    Chilliblue Well-Known Member

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    It is what is written in the contract
     
    Chilliblue, 9th Jul, 2015
    #5
  6. Rixter

    Rixter Well-Known Member

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    Ive used $100 to $1000 over the years depending upon which state Im purchasing in.
     
    Rixter, 9th Jul, 2015
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  7. Greyghost

    Greyghost Well-Known Member

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    Paid $1000 for my Qld properties..
     
    Greyghost, 9th Jul, 2015
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  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    No such thing as a 'holding deposit' in NSW. You need to enter into a contract of sale and then withdraw if need be, otherwise you have no agreement. You can do this and forfeit 0.25% or have a special condition so you don't - up to your negotiating skills, but will be difficult in this climate.
     
    Terry_w, 9th Jul, 2015
    #8
  9. Big Will

    Big Will Well-Known Member

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    1k initial deposit 5-10% if accepted, depends on state.
     
    Big Will, 10th Jul, 2015
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  10. Propertunity

    Propertunity Well-Known Member

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    Propertunity, 10th Jul, 2015
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  11. Hodor

    Hodor Well-Known Member

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    In NSW under a standard contract a property is "held" when you pay a 0.25% deposit and have exchanged contracts (both yourself and vendor have signed).

    At this point the cooling off period (5 days) begins and only you can pull out - this will cost you the 0.25% deposit you paid however. At the end of the cooling off period you need to pay the balance of the deposit (usually 5-10% per your agreement.
     
    Hodor, 10th Jul, 2015
    #11