We had a situation where we sold one PPOR and bought another, and managed to arrange for concurrent settlements. The purchaser of our old PPOR had paid a relatively large deposit, I think it was a 10% deposit on a $280K sale - a while back! - so $28K. Our problem was that we were buying a new PPOR on the same day, using the proceeds of that sale. What's the issue? Well, real estate agents have some period of time - I think it was 42 days from settlement? - in order to finalise your account and release the balance of your deposit. Many of them will "instantly settle" - i.e. release excess funds at settlement - but our real estate agent didn't. So after their ~$5K commission, they had another $23K sitting in their Trust account, that we needed in order to pay the seller of our new PPOR. Our lender refused to settle without the $23K, as we'd only borrowed up to $X, not $X+$23K. I was in hospital recovering from an emergency C-section and dealing with very premature twins, and this was stress we really didn't need. Somehow - I have no idea how, with how much paperwork is usually required - the lender did pay $X+$23K to the seller of our new PPOR, and sent us a very stern letter telling us we had a $23K overdraft that we'd best attend to ASAP. But it astonished me to find that one could find oneself in such a pickle. The lesson: 1) Don't accept a deposit that's more than agent's commission plus a reasonable recompense for if the contract falls over - certainly no more than 5%. 2) If you do accept a larger deposit, ensure that you have agreement from the real estate agent that they'll settle their trust account concurrent with your property settlement. @RPI, @Terry_w - does this happen often? Best way to protect oneself? Is it also an issue in NSW and other states, or is this a QLD anomaly?