How does a Deposit Work When Buying a House?

A purchaser under a contract for the sale of land in NSW usually pays a deposit, traditionally being 10% of the purchase price, at exchange of contracts. The balance of the purchase price is then paid once the Contract is completed (at settlement).

 

The most common ways to pay a deposit are via:
  1. Personal cheque.
  2. Bank cheque.
  3. Bank transfer.