Pay on or before the due date (usually the day you sign) by cheque directly delivered to the deposit holder with evidence of timing, or by electronic transaction with written evidence provided at the time of the transfer. Get a receipt for cheque payments; save and send transaction confirmations for electronic ones. Don't rely on payment instructions from the seller or agent that differ from the contract, and verbally verify details with the deposit holder before paying. Seek legal advice if unsure.
Paying the deposit: method and evidence
| Method | What to do | Evidence to keep and provide |
|---|---|---|
| Cheque | Deliver it directly to the deposit holder on or before the due date | A receipt showing when it was paid |
| Electronic transfer | Transfer on or before the due date and provide written evidence at the time of the transfer | Transaction confirmation, saved and sent to the deposit holder |
Your deposit is held by the estate agent or a legal practitioner as stakeholder until settlement, unless it is released to the seller earlier under section 27 of the Sale of Land Act 1962. For an off-the-plan purchase, the deposit is capped at 10% of the price (section 9AA).
Under many Victorian contracts, not providing written evidence of an electronic transfer by the due date can give the seller a right to terminate until you do, so check your general conditions and send proof at the time, not later.
