Q- Are you unsure of what deposit to offer when entering into a contract?
A- It is important to remember that the deposit amount on the contract cannot exceed a total of 10% of the purchase price. In the event that the deposit paid exceeds 10% of the purchase price, the amount is no longer considered a deposit and instead is considered an installment.
When negotiating contract terms, remember that your deposit paid to the seller is different to the deposit available to use at settlement. This often causes confusion with buyers who have savings available to use as a deposit towards their loan amount.
It is important to ensure that all contracts entered into have no more than a 10% deposit paid by the buyer.
We are here to help!
Please feel free to contact us if you have any queries or would like to arrange an earlier settlement date.
We believe the success of our business comes from treating you as an important business associate, and providing you with as much support as possible in dealing with your clients. This means providing you with the highest level of service, efficient turnaround of contracts, and quick, hassle-free responses to your individual needs.
Please feel free to forward a copy of this newsletter onto your associates.