A property sale price is the number everyone notices, but the transaction itself is made up of several moving parts. In Victoria, buyers and sellers also need to understand the deposit, where that money is held, what happens at settlement and why adjustments can change the final amount paid.

The deposit is usually paid when the buyer and seller sign the contract, although the exact amount is a matter for the contract. Consumer Affairs Victoria says there are no laws setting the deposit amount for a property sale, but the deposit is usually 10 percent of the purchase price. A buyer may pay the full deposit immediately or pay part of it first, with the balance due by a date specified in the contract.

Where the deposit sits is important. If an estate agent is managing the sale, the buyer usually pays the deposit to the agent, who holds it in a trust account until settlement or transfers it to a conveyancer’s or legal practitioner’s trust account. If there is no agent, Consumer Affairs Victoria says the deposit must be handled through the seller’s legal practitioner, conveyancer or an authorised special purpose account in Victoria.

A property being “under offer” is not the same as sold. Until both buyer and seller have agreed on price and signed a contract, the property can remain on the market. This is why buyers should not rely on a verbal understanding, and sellers should keep their agent’s advice clear until the paperwork is complete.

Settlement is the point where ownership transfers, the balance of the purchase price is paid and the buyer becomes entitled to possession according to the contract. Behind the scenes, conveyancers or solicitors coordinate the lender, title transfer, payout of any seller mortgage, duty requirements and final figures.

Adjustments are part of those final figures. They account for expenses that relate to the property but are paid across a period that straddles settlement. Council rates, water charges, owners corporation fees and land tax where relevant may need to be apportioned so the buyer and seller each pay their share for the period they own the property.

For buyers, adjustments can mean the amount required at settlement is not simply the purchase price minus deposit. They should ask their conveyancer for an estimate early enough to arrange funds. For sellers, adjustments affect the net proceeds and should be understood before relying on a final payout figure.

Early release of the deposit is possible in some circumstances, but it is not automatic. Consumer Affairs Victoria notes that the contract must be unconditional, the buyer must be satisfied with proof of debts information, and the buyer cannot release the deposit until at least 28 days after the contract was signed.

The practical advice is simple: do not treat settlement as a mystery that resolves itself on the day. Buyers and sellers should ask for explanations of deposit timing, trust account handling, adjustment calculations and settlement funds well before settlement. Clear money steps reduce last-minute stress.