About the deposit
Learn more about what happens to your deposit during a property transfer.
When a buyer pays a deposit, this is usually an indication of your intention to purchase the property. The deposit usually consists of a substantial portion of the sale price (but not usually more than 10%).
The deposit is usually held in a trust account by the real estate agent. The reason it gets held in trust is to protect against the loss of the money if the deposit holder goes bankrupt.
If the buyer terminates the contract for a valid reason, the deposit is usually refunded to them.
Adjustment for the deposit is made to the purchase price at settlement. The agent generally takes their commission from the deposit they hold in trust. After settlement, the agent is authorised to release the balance to the seller.
Learn more
- Learn more about about property titles.
- Find out about property searches.
- Learn more about price adjustments at settlement.
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