What is a booking deposit and when do I pay it?

Question:

Answer:

Once your offer on a property is accepted by the auctioneer/estate agent they will ask you to pay what’s called the Booking Deposit. The amount of a booking deposit varies from auctioneer to auctioneer but it is usually a percentage of the full purchase price, generally 5%. This 5% deposit is a fully refundable holding deposit that remains with the auctioneer until closing. The balance of the 5% deposit is payable on signing contracts which then results in a full 10% deposit held by the Vendor (through the auctioneer and solicitor) when both parties have signed the contract. Once your legal team completes their review and contracts are signed you then pay the balance of the purchase price. This is the purchase price minus the 10% booking deposit you paid to hold the property. ( i.e. if you agree to buy a house for €150,000 and make a 10% booking deposit of €15,000, when you sign the contract you will pay the remaining amount of €135,000; that’s €150,000 - €15,000= €135,000). Before you sign any documents there will be a breakdown of what is due when contracts are signed. letsbeam.ie

What is a booking deposit and when do I pay it?

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