Several times clients that are purchasing real estate have asked, “Do I really need to give a deposit?” The parties say “This is a friendly transaction, is it really necessary to give the seller a deposit when entering into a purchase and sale agreement?  There are actually several good reasons for requiring a deposit with a purchase and sale agreement.

A Purchase and Sale Agreement is a contract for the sale of land.  In order to have a valid contract the law requires that there be an offer made, an acceptance and consideration for the contract. In a real estate transaction, the offer is made by the Buyer when wanting to purchase the property at a set price.  Acceptance occurs when the Seller accepts the Buyer’s offer by agreeing to sell the property at the set price.  The consideration of the contract then comes from both parties.  The Seller’s consideration is the agreement to not sell the property to someone else during the term of the purchase and sale agreement.  The consideration from the Buyer is the deposit.

private sale, so only between buyer & seller



There is no written agreement between buyer & seller then no need ask too much. Its all verbal only.

how do you think a "he say, she say" argument is going to go.. if a large sum of $ is on the line, one should put things on paper instead. Thus this argument is purely academic.