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Your deposit is at risk: how much, when it's due, and what happens if you miss the deadline
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Deposits in Property Transactions

What happens if I miss the deposit deadline when buying a property?

Reviewed by a licensed conveyancer

Reviewed by

Cordell Smith

Last updated

July 24, 2026

A deposit is part payment of the purchase price you pay when signing the contract. Paying it on time secures the property and takes it off the market to other buyers; if you don't pay by the date required in the contract, the seller may terminate and claim compensation — even after you eventually pay.

In detail

To avoid breaching the contract: pay on or before the due date, either by cheque delivered directly to the deposit holder, or by electronic transfer with written evidence provided at the time of payment. Keep your own records and don't rely on payment instructions from the seller or agent that differ from what's in the contract. How much you need to pay, who holds it, and what specific rights the seller has if you're late all vary by state — see the state-specific detail for NSW, QLD and VIC.

Common questions

What if the seller or agent gives me payment instructions different from the contract?

Don't rely on them — verify directly with the deposit holder or seek legal advice if anything is unclear.

Related explainers

Section 27 Early Release of Deposit (VIC)

Section 27 of Victoria's Sale of Land Act 1962 lets a buyer's deposit be released to the seller before settlement, instead of being held in trust, if certain conditions are met.

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Finance Approval Guide

Finance approval is your lender's formal agreement to fund the purchase. Where your contract is subject to finance, you must take all reasonable steps to obtain approval by the finance date — applying promptly and following up diligently — then notify the seller in writing before the deadline whether it's approved, waived, or not approved.

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Consequences of Buyer Default (QLD)

A buyer default happens when the buyer fails to meet their contract obligations, and the seller then has several remedies available to recover their position and be compensated for losses.

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Complying with Contract Conditions

Complying with contract conditions means satisfying the requirements your contract is subject to — typically a finance condition or a building and pest inspection condition — by the relevant deadlines. You must take reasonable steps to meet them in time, or you may lose the right to terminate on those grounds.

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