Payment of deposit

The deposit is part of the purchase price that the purchaser pays as an initial down-payment on the property purchased.

While purchasers are not legally obliged to incorporate a deposit provision in the ‘agreement of sale’, we recommend it, as it indicates to the seller that the purchaser is serious and committed. This measure of assurance can be of tremendous significance in making a purchaser’s ‘offer to purchase’ more attractive than other offers that the seller may be considering.

In common practice, deposits are usually paid at 10% of the purchase price, but there are no rules or regulations stipulating the amount the deposit should approximate. Accordingly, deposits may be lower than or exceed 10%.

By law, the estate agency must hold the deposit in its trust account. The trust account is distinct from the agency’s business account, and its sole purpose is to hold clients’ deposits for the period during which the contract is being finalised. Throughout this period, the deposit remains the money of the purchaser, as opposed to the estate agency or the seller.

Please note: We have compiled this information in good faith, but we accept no liability for any errors, or for any use that is made of it, or for any problems or damage that may arise as a result of using or acting upon this information.

• Buying
  1. Fixtures and fittings
  2. Costs of buying
  3. Understanding an offer to purchase
  4. Understanding an Agreement of Sale
  5. Overview on buying
  6. Payment of deposit
  7. Offer to Purchase
• Selling
  1. How to select an estate agent?
  2. Why use an estate agent?
  3. Understanding your mandate
  4. Understanding an offer to purchase
  5. Understanding an Agreement of Sale
  6. Select an Estate Agent Page
  7. Why choose Rawson?
  8. Overview on selling
  9. Why choose a Rawson Sole Mandate?
  10. Costs of selling
  11. Which kinds of properties are ideal for auction?
  12. Latent and patent defects
• Letting
  1. Advice for tenants