Deposits & Contracts

Deposits and contracts formalise your commitment to a property purchase and set out exactly what each party has agreed to. Understanding the typical structure helps you know what you are signing at each stage.

The Reservation Deposit

After an offer is accepted, buyers typically pay a reservation deposit and sign a short reservation agreement. This deposit takes the property off the market for an agreed period while due diligence, financing arrangements, and the full sale and purchase agreement are finalised. The reservation agreement should clearly state what happens to the deposit if the deal does not proceed, for instance whether it is refundable if due diligence uncovers a serious issue.

The Sale and Purchase Agreement

This is the main contract governing the transaction, and it should cover, at minimum:

• The agreed price and payment schedule.
• The exact property being sold, including any furniture, fittings, or parking spaces included.
• The ownership structure being transferred (freehold title or leasehold registration).
• The target completion date and what happens if it is missed by either party.
• Remedies if either party fails to fulfil their obligations.

Off-Plan Contracts

For off-plan purchases, the contract will also typically include a staged payment schedule linked to construction milestones, along with provisions covering delays, specification changes, and what happens if the project is not completed.

Before You Sign

Never sign a deposit agreement or sale contract without having it reviewed by your own independent lawyer first, even if the seller’s side describes it as “standard.” Standard templates still need to be checked against the specifics of your transaction, and a short delay to get proper advice is far cheaper than an unfavourable clause discovered later.

Anan Property Group will keep you informed at every contractual milestone and coordinate timing with your legal team so nothing is rushed.