The deposit is two payments
The bottom line
The 10% goes to the agent when you go unconditional. The rest of your money goes to us before settlement.
Buyers plan for one lump sum. In practice the deposit, usually 10% of the price, is paid to the real estate agent's trust account on the day the agreement goes unconditional. The agent holds it for ten working days, deducts commission, and sends the balance to the vendor's lawyer.
Your remaining contribution, including any KiwiSaver, is paid into our trust account the day before settlement and goes to the vendor with the bank's loan. The flowchart in this lesson follows the money from your account to theirs.
Read this
After unconditional: where does the deposit actually go?
Do this
Split your deposit with the calculator
Check yourself
Who holds the deposit after you go unconditional?
The real estate agent, in their trust account, for ten working days.
What comes out of the deposit before it reaches the vendor?
The agent's commission.
When should your settlement contribution reach the lawyer's trust account?
The working day before settlement.
Talk it through
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