Why is a deposit on a contract of sale required?
It set your genuine intention to purchase a property and secures the property off the market.
When should a deposit be given?
Normally an initial deposit is required on a land contract and may require a further deposit when your finance goes unconditional.
On a build contract however, your first 5% deposit is required for payment once you have finalised with the builder the floor plans, inclusions/variations & soil test reporting.
What do the banks require to fund the contracts?
The banks will require both the land contract and the build contract in order to approve what they term as a ‘Construction Loan’.
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