Generally, a deposit is due at the time contracts are entered into. This is a standard ‘essential’ term of all contracts in NSW. The default deposit amount is 10% of the purchase price, however, it is common for this to be reduced to 5% or, for a deposit bond to be used in lieu of a cash deposit, with the seller’s consent.
At auction, the successful buyer should be prepared to pay the deposit immediately after the auction is held.
The deposit is normally held in the real estate agents trust account until settlement occurs, unless negotiated otherwise.
For more information about deposit bonds click this link: https://depositpower.com.au/
