Making an offer
Property deposits, explained
Trust accounts, early release, amounts and what happens to your deposit if a sale falls through — private sale and auction, side by side.
- A private-sale deposit can only be released early if the contract is unconditional, proof-of-debts information is satisfactory, and 28 days have passed.
- There's no legal minimum or maximum auction deposit — 10% is the common figure.
- A post-auction deposit must be held in trust and can only be released early if the buyer agrees.
- Verify deposit payment instructions independently — never solely from an email.
Private sale: held in trust, released only under specific conditions
A private-sale deposit is held in trust by the agent or the parties' conveyancer or legal practitioner until settlement. It can only be released to the seller before settlement if the contract is unconditional, the buyer is satisfied with the proof-of-debts information provided, and at least 28 days have passed since signing (Consumer Affairs Victoria, verified 30 Jul 2026). Until all three conditions are met, your deposit stays in trust regardless of what the seller or agent might prefer.
Auction: no set amount, but the same trust rule
Victorian law sets no required auction deposit amount, though 10% of the purchase price is the common figure — a buyer who prepares a deposit cheque for more than they end up bidding will find it represents more than 10% of the actual sale price (Consumer Affairs Victoria, verified 30 Jul 2026). Either way, a post-auction deposit must be held in trust by the seller's agent, conveyancer or legal practitioner until settlement, and can only be released to the seller before then if the buyer agrees; a seller without an agent must deposit it with their own practitioner or a special-purpose account in both parties' names (Consumer Affairs Victoria, verified 30 Jul 2026).
What to actually confirm
Before paying a deposit: confirm the exact trust account or firm it's being paid to (independently, not just from an email), confirm the deposit amount and due date match what's in the contract, and confirm your conveyancer knows the payment has been made. A holding deposit or expression-of-interest payment made before a contract exists is a different arrangement again — it may not secure the property in the way a signed-contract deposit does, so confirm exactly what it does and doesn't commit either party to.
Worked example
A buyer wins an auction with a prepared bank cheque for 10% of their $715,000 walk-away limit ($71,500), but the property sells for $706,000. Their cheque is worth more than 10% of the actual sale price — the agent explains the excess will be adjusted, and the buyer confirms with their conveyancer exactly how before handing it over, rather than assuming it will sort itself out.
Practical checklist
Before you pay a deposit
- Confirm the trust account or firm details independently, by phone through a known number
- Confirm the deposit amount and due date match the signed contract
- Confirm with your conveyancer that the payment has been made and received
- For any holding or expression-of-interest payment, confirm exactly what it does and doesn't secure
Questions for a professional
- Can you confirm these trust account details independently before I pay?
- Under what conditions could this deposit be released or forfeited?
Official resources
- Consumer Affairs Victoria: Buying property by private sale
- Consumer Affairs Victoria: Buying property at auction
Sources and methodology
- Buying property by private sale — Consumer Affairs Victoria (retrieved 30 Jul 2026)
- Buying property at auction — Consumer Affairs Victoria (retrieved 30 Jul 2026)
Figures on this page are drawn from Delora's local knowledge graph, refreshed from these primary sources and checked for changes on a regular schedule. If a figure here looks out of date, the official source above is always the authority — please let us know.