Hi all,

As I understand, agents/sellers often require an initial 3% as the earnest deposit. Mine is seeking 3.5% or 3.18% as the lowest option. I feel the amount's a little weird and after this earnest deposit is paid, I will have 10 days to secure a bank loan or the deal will fall through. Can banks process loans that quickly?

This is my first time, so your thoughts are highly appreciated. Thanks!

Usual is 3%. Because of GST, that is why you get the 3.18%. The rest is upon execution of S&P.

Usual is 14 working days to secure loan and to execute the S&P. Which is unlikely can achieve.

So must have some mutual understanding between you, seller, both lawyer and agent. Also before sign the agreement to purchase / deposit and pay the 3%, please ask to put some clause to protect yourself. Things like, subject to loan approval and consent if any. So your booking can be refundable in case of you unable to get a loan or any issue regarding consent from state.

This post has been edited by aiskrimcup: Jun 13 2016, 09:35 AM

Normally 2 - 3%

The agent should give 14 days as a norm.

10 days quite tough to meet.

if you are buyer, request 21 days
if you are seller, insist 14 days

from there, nego again.

2%, 3%, 3.18% are quite normal nowadays with gst implementation.

if the AGENT ask for 3.5% earnest deposit , there is something wrong already.

nego with the agent to put 14 WORKING days in the booking form. ( offer to purchase )

deleted. i need to reconfirm with custom

This post has been edited by peri peri: Aug 9 2016, 11:37 AM