The deposit is paid to the deposit holder by contracts exchange, unless otherwise agreed. If a cooling-off period applies, typically 0.25% by exchange and the balance by cooling-off expiry. The deposit holder is ordinarily the real estate agent, or the vendor's legal representative if there's no agent or trust account. The vendor can terminate if the deposit isn't paid on time, a cheque isn't honoured, or an EFT isn't received by the third business day after the due date, and this right is lost once the deposit is paid in full. If the vendor terminates, they may also sue for damages and any resale deficiency if they resell within 12 months. Payment methods: EFT, DEFT, cheque, or a deposit-bond if the vendor accepts it.
NSW deposit options at a glance
| Deposit | Amount | When it's paid | At risk if you default? |
|---|---|---|---|
| Standard deposit | 10% of the price (unless the vendor agrees to less) | By exchange, unless otherwise agreed | Yes, forfeited on default |
| With a cooling-off period | 0.25% at exchange, balance by cooling-off expiry | 0.25% on exchange; the rest by the end of cooling-off | 0.25% forfeited if you cool off; the full deposit is at risk on later default |
| Deposit bond | A guarantee for the deposit amount | At exchange, if the vendor accepts it | The issuer pays the vendor, then pursues you |
