Deposit Issues

 

It is my very strong recommendation that all sale and purchase agreement have the following pre-printed on them.  This is very simple if using the ADLS 8th edition and the REINZ eform system.

 

DEPOSIT: 10% of the purchase price payable to the agent herein.     $_________ forthwith. $_________on the agreement becoming unconditional. The balance prior to Possession Date.

 

Obviously this can be altered but with great care.  It caters for virtually every situation.

 

The deposit should always be 10% of the purchase price even if the purchasers only have $1,000 and cannot pay anymore prior to settlement.  In that event the clause would read:

 

DEPOSIT: 10% of the purchase price payable to the agent herein.     $1,000 forthwith. $_________on the agreement becoming unconditional. The balance prior to Possession Date.

 

Please be sure you understand completely how to use this and how to amend it for other circumstances, if absolutely necessary.

 

This is an extremely important and high risk part of what we do.
 

 

Back to the list of Useful Clauses