Less than 10% Deposit

Beware of Accepting Less Than 10% Deposit on Sale

There has been an increasing trend over the last several years for property vendors to accept a less than 10% deposit when the property is sold.  This is good for the purchaser, but a recent court case makes it clear it can be very bad for the vendor.

In the case, the contract stated that only a 1% deposit would be paid, but the purchaser agreed in the contract to pay the whole 10% in the event of a default.  The court took the view that 10% was not a genuine deposit but rather, 1% was the deposit and 9% was a penalty not recoverable by the vendor.

So if selling your property, insist on a full 10% deposit even if it is paid by installments or by bank guarantee.

Readers should not act or rely on this information without first seeking out professional advice concerning their particular circumstances

COVID-19 Announcement

Please be advised that our offices are open however due to social distancing regulations for the foreseeable future we will be limiting face to face conferences.

For clients regarding wills, power of attorneys and enduring guardianships we will organize to hold the meeting in a conference room that meets the social distancing rules.

We will be conducting our conferences via video conferencing or phone where necessary. At this point we will not be able to conduct any Notary Appointments.

Be assured that all property settlements will not be affected and will continue to be transacted electronically.  Russell Kelly & Associates is a certified accredited participant in Property Exchange Australia (PEXA).

We will be monitoring the governments responses and will update as necessary.