The moment you have finally been able to buy your first starter house, the wait for the house transfer often begins until the homehouseis really yours. After signing the purchase contract, the seller often wants to receive a deposit, as extra security that you are going to buy the house. In this article, we briefly explain what the deposit entails.
The buyer pays the deposit, as extra security for the seller that the property will be sold. The deposit for an owner-occupied home is usually 10 percent of the purchase price. You do not pay the deposit directly to the seller, but you transfer it to the notary. If you do not have sufficient funds to pay the deposit, you can request a bank guarantee. This basically means that the bank guarantees payment of the deposit if the buyer does not meet his or her obligations. Of course, the bank will charge a fee for this, usually one percent of the deposit. If the sale does not go through and the seller demands the deposit, you must repay this amount to the bank.
There is a term attached to the payment of the deposit (or the bank guarantee), which you can find in the purchase contract. You often have to arrange this within two weeks. In the best-case scenario, the purchase of the house will of course continue and you will get the deposit back from the notary at the time of passing. You can always find this on the bill of settlement.
Legal Affairs
What is a security deposit?
After a purchase contract is signed, you pay a deposit to the notary as security for the seller. This sum is usually 10% of the purchase price and can also be arranged through a bank guarantee. Upon successful transfer, you get the amount back.
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