Under the REISA standard contract in SA, what is the typical deposit amount for a residential property sale?
Correct Answer
C) The deposit is negotiable between the parties; no amount is fixed, though 10% is common
No law fixes the deposit on an SA residential sale; the parties negotiate it, and 10% of the price is a common figure. One statutory limit applies: under s 5(5) of the Land and Business (Sale and Conveyancing) Act 1994, before the cooling-off period ends the vendor must not demand more than $100 (or a greater prescribed amount) as a deposit, so larger deposits are usually paid in stages.
Why This Is the Correct Answer
The deposit is a matter for negotiation, and 10% is a common figure. The only statutory limit is that, until cooling-off ends, the vendor cannot demand more than a small deposit.
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