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 5-10% 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
  4. Deposit bond