A buyer paid an expression of interest deposit on a NSW house, but the vendor then exchanged contracts with a different buyer. What is the first buyer entitled to?
Correct Answer
B) A full refund of the deposit within 14 days
An expression of interest deposit is refundable and does not oblige the vendor to sell. Under the rules of conduct, the vendor's agent must refund it within 14 days once a contract for sale has been entered into by someone else. The buyer has no statutory right to recover other costs she spent preparing to buy.
Why This Is the Correct Answer
When another buyer's contract is entered into, the preliminary deposit must be refunded in full within 14 days.
Why the Other Options Are Wrong
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