Page 7 - Luton Properties eBook 2018

PREPARING FOR $ The exchange deposit is

THE AUCTION usually 10% of the purchase
price, however, some sellers
will accept a 5% exchange deposit.
Once you have decided which Ask the selling agent if a 5% exchange
property you want to buy, deposit will be acceptable and organise

approach the agent and have your payment method. Some agencies
a chat with them about the home. Speak will accept EFT with a small cash
with your mortgage provider – let them deposit on auction day, otherwise a bank
know you are going to bid for a property, cheque, personal cheque or deposit
check that your loan pre-approval is bond are the usual methods of payment.
still current and arrange to have your Discuss this with the agent.

exchange deposit ready for auction day.
A deposit bond, or guarantee,

is an alternative to providing
a cash deposit or personal
cheque upon the exchange of contracts
for the sale of land. The use of a deposit
bond requires the specific approval of
the seller and needs to be written into

the contract for the sale of residential
property. You may wish to seek advice
on the use of deposit bonds from your
bank or solicitor and allow a couple of

weeks to organise one. If paying by bond
or bank cheque, organise one for 10%
“
or 5% of the amount you are prepared

IF THE SELLER IS SATISFIED THAT THE

RESERVE HAS BEEN MET OR IS PREPARED
TO SELL TO THE LAST BID OFFERED, THEN
to pay to buy the home. If the purchase ”
THE AGENT WILL ANNOUNCE THAT THE

PROPERTY IS ‘ON THE MARKET’.

price means your exchange deposit is
slightly higher or lower than required,
the difference can easily be made up –

just let the auctioneer or agent know.

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