Property Conveyancing Services Blog

What is the amount of deposit required in an Agreement for Sale and Purchase? Generally anywhere between 10-20% of the purchase price. Why? In New Zealand the deposit is paid to the Real Estate Agent as Stakeholder. There is a period by which the Real Estate Agent must hold the deposit before it can be released. Once the Agreement becomes unconditional the Real Estate Agent will be paid their commission from the deposit and the balance will be sent to the Vendor’s Conveyancing Practitioner or Legal Practitioner. In todays market we are seeing an increase in the number of mortgagee sales. Your Conveyancing Practitioner or Legal Practitioner should ensure there is sufficient to repay any mortgagee who is Discharging the Mortgage and obtain your instructions before authorisation of early release of the deposit.  Ensure your interests are being looked after. Warm regards Kim