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Agent wants 10% deposit for private sale on signing the contract?
Is this normal?
That means buyers who wants to take a 95% home loan and equity loan will not be eligible?
Yes, but as a part of your offer you can say with a 5% deposit. Alternatively, you can folk out $300 bucks (varies depending on purchase value) for a 10% deposit bond, from someone like Deposit Power.
Agent wants 10% deposit for private sale on signing the contract?
But i am just a little confused here. you say:
What do you mean by "private sale".
Agent wants 10% deposit for private sale on signing the contract?
What do you mean by "private sale".
What do you mean by "private sale". Are you buying directly from the vendor and if so, why is there an agent in place? Are you referring to their solicitor or to a Real Estate agent?
Thanks
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You could have, for example, a 10% deposit, payable on the day that settlement is due. You pay no cash now, but if 1) everything goes according to plan, you pay the deposit at settlement, and 2) if you default, the 10% still has to be paid and will be forfeited.
Yes, if you settle on time, that's exactly right.but in this case, paying 10% deposit when settlement due, isn't like paying 100% when settlement (if the bank loans 100% for eg), on settlement the bank will trasnfer money to seller?
Yes, but that's a risk in any case. If you have an unconditional contract, the vendor really doesn't care whether your bank has delayed things.wait a min, is there any situation where it can't settle on time (delay by bank?)
Yes and no... it's a matter of degree.s050399b said:even if i were to sign a contract where i need to pay 10% deposit on settlement, and I breach the contract, they still need to spend $$$ to sue me to get $$$?
YesOne more question, for the 10% deposit on settlement, do we need to prepare a 10% deposit,
Nope, not even if it is a 95% lend. The bank isn't stupidor let bank give them 100%?
Why do you say that, Propertunity? I've always let the bank pay my deposits.Nope, not even if it is a 95% lend. The bank isn't stupid
In Vic, private sale usually refers to one that's not going by auction or tender.
There's a lot of psychoogy involved in putting in the offer.
Consider from the vendor's side:
lowish offer, 10% down, unconditional
highish offer, $500 down, conditional on bank, inspeciton, etc etc etc
Which would you accept?
The Y-man