Q:I'VE PAID 10% DEPOSIT INTO THE AGENT'S TRUST ACCOUNT BUT THE AGENT IS STILL SHOWING THE HOUSE

A: Hi John, it's a good question and it's one we've heard countless times. Don't panic - this is perfectly legitimate.

All offers to purchase or sell are merely preliminary negotiations. Paying a deposit for the property is an act of good faith, but it will not take the property off the market.

The Vendor is still entitled to show the property for sale until the Contracts for Sale of Land are formally exchanged. At Law you are not entitled to rely on any other guarantee, promise, or "handshake" whatsoever.

Many Vendors will offer to hold the property for you for a week or so, and will stand by their word. The idea is to give you a fair go at doing your building inspections in the confidence that the Vendor has stopped negotiating with other buyers. But the point is, there is no sale at all until the Contracts are exchanged. The rest is mere "maybe....".

If you, as a purchaser, decide on a whim not to proceed prior to exchange of contracts, you will generally be able to have your deposit returned by the agent.

Please remember this advice applies to New South Wales Residential property only. To confirm your particular circumstances, please contact Liberty Conveyancing