12 Feb Conveyancing – What happens if I don’t pay my deposit when it is due?
It happens frequently; the deposit due under the contract is either paid late or not paid at all. Buyers and Sellers both need to be aware of their rights in these circumstances.
In terms of Queensland conveyancing, deposits are commonly due at any of the following times:
1. When the buyer signs the contract;
2. within a certain time after both parties have signed the contract;
3. On a certain, fixed date;
4. upon the contract becoming unconditional.
If a buyer does not pay the deposit to the deposit holder when required they will be in default of their obligations under the contract. Importantly, the buyer will continue to be in default even if the deposit amount required is paid, albeit late. If a buyer is in default under the contract a Seller gains certain rights including termination of the contract.
So if you are a buyer and you can’t pay your deposit on time or at all, you should talk to your conveyancing solicitor about your options. They may be able to arrange an extension of time for you to pay the deposit and keep you from defaulting under the contract.