This precedent is a letter to the agent confirming exchange of contract and includes optional paragraphs relating to deposit.
The precedent serves to confirm exchange with the agent. Where applicable, it also provides the agent with the deposit received on exchange to be invested on behalf of the parties. It is becoming more common practice for the vendor’s representative to be depositholder under a contract for sale of land.
A number of options have been included out below depending on:
· who the depositholder is, whether the agent or the solicitor;
· whether the full deposit is received on exchange, or whether a balance of the deposit is received on exchange with the agent holding a preliminary deposit;
· whether the deposit is to be invested or not;
whether in lieu of a cash deposit a bank guarantee or deposit bond was received on exchange.
This precedent has been authored for Lexis Nexis by Daniela Terruso, Director, Intelmar Pty Limited.