Can You Accept Over 10% Deposit Selling Gold Coast Property?
In short, yes, you can accept more than a 10% deposit when selling a property on the Gold Coast, but doing so may legally change your entire contract. If the buyer pays more than 10% before settlement, Queensland law could reclassify your agreement as an instalment contract, which brings a completely different set of rules, restrictions, and risks for you as the seller. It’s not something most agents will warn you about, but it could significantly impact your rights. Let’s break it down clearly.
Thinking of Selling? Here’s Why Deposits Deserve More Attention
If you’re a Gold Coast homeowner considering a sale, you’re likely juggling a mix of emotions and questions.
You might be excited, nervous, or simply overwhelmed by the idea of it all. One thing that often gets overlooked in early conversations but can become crucial later is the deposit.
While it’s easy to focus on the sale price or the marketing campaign, overlooking the deposit amount and its legal implications can be costly, especially when that figure starts creeping past the 10% mark.
What is a Property Deposit in Queensland?
A deposit is the buyer’s way of saying, “I’m serious.” It’s an upfront payment, usually held safely in a real estate agency’s trust account, which is deducted from the final purchase price at settlement.
If all goes well, it’s smooth sailing. If the buyer pulls out without a valid reason, you may get to keep it.
But it’s not just about money changing hands. In Queensland, the size of the deposit can legally alter the type of contract you’re entering into.
What is a Typical Property Deposit Amount?
There is no fixed rule, but most deposits in Queensland typically range from 5% to 10% of the purchase price.
Some buyers pay a small deposit upfront (as an example, 5%), and top it up to 10% later once conditions like finance are sorted.
However, once the total deposit goes over 10%, you’re potentially stepping into instalment contract territory, which isn’t just a legal technicality, but a significant shift in risk and responsibility.
What Happens if a Buyer Offers More Than 10% Deposit to Purchase My Property?
It might feel like a sign of strong commitment: “Great news, the buyer is putting down 20%!”
But here’s the catch: in Queensland, that could automatically turn your sale into an instalment contract under the Property Law Act 1974 (Qld).
That change isn’t just semantic. It alters your ability to terminate the contract, restricts how you deal with your property, and gives the buyer greater legal protection.
What Is an Instalment Contract when Related to Selling Property?
An instalment contract is a special type of property agreement where the buyer pays more than 10% of the purchase price before the title officially transfers.
Instead of one clean settlement, they pay in stages.
Sometimes this is intentional, like in vendor finance deals, but more often it happens unintentionally when a large deposit or extra payment is agreed upon without understanding the consequences.
How a Standard Contract Differs from an Instalment Contract
| Standard Sale Contract | Instalment Contract |
| Up to 10% deposit held in trust | Buyer pays over 10% before settlement |
| Title transfers at settlement | Title transfer may be delayed |
| Easy termination for buyer default | Seller must give 30 days to remedy |
| Seller can mortgage or sell again | Buyer can lodge a caveat on the title |
| No caveat rights for buyer | No caveat rights for the buyer |
Why Instalment Contracts Can Be Risky for Sellers
From the outside, a bigger deposit looks like a win. But inside the fine print, it’s a very different story.
Defaulting Gets Complicated
If a buyer defaults under a standard contract, you can usually terminate swiftly.
Under an instalment contract, you must give them 30 days to fix the issue.
If they do, the deal stays alive, no matter how stressed or inconvenienced you are.
Your Hands Are Tied
Want to refinance, sell, or access equity? You’ll need written consent from the buyer under Section 73 of the Property Law Act. Otherwise, you could be breaking the law.
The Buyer Can Lodge a Caveat
Buyers under instalment contracts can place a non-lapsing caveat on your title. That makes it nearly impossible for you to deal with the property without going to court or waiting them out.
You Might Have to Hand Over the Title Early
If the buyer pays one-third of the purchase price and isn’t in default, they can force you to transfer the property to them, turning you into a lender for the remaining amount.
How Do These Instalment Contracts Happen Accidentally?
It’s more common than you think, especially in hot markets like the Gold Coast, where buyers are keen to secure a deal.
You could accidentally create an instalment contract if:
- The buyer offers more than 10% up front.
- The contract includes additional payments made before settlement (even if a different name refers to them).
- The total money paid before settlement adds up to over 10%, regardless of intention.
What About Early Deposit Releases?
Good news: if a portion of the deposit (within 10%) is released to you early from the trust account, that alone doesn’t make it an instalment contract.
As long as the overall pre-settlement payments stay at or below 10%, and the money is clearly defined as a deposit, you’re in safe waters.
Let’s Talk Emotions: Selling Is a Big Deal
This isn’t just a legal matter; it’s personal. For many Gold Coast homeowners, selling is tied to life changes: downsizing, growing families, new jobs, or fresh starts. It’s okay to feel uncertain, even a little hesitant.
Here are some emotional checkpoints I often hear:
“What if the buyer backs out?”
That’s what deposits are for. If your contract is clear and the buyer pulls out without a valid reason, you may be entitled to keep the deposit.
“I don’t know where I’d go next.”
That’s normal. You can plan for flexible settlement dates or explore short-term rentals to give yourself breathing room. The Gold Coast market moves quickly, so timing is everything.
“I’m worried I’ll miss something important.”
That’s what your solicitor or conveyancer is there for. From deposits to disclosures, they will help you feel fully informed.
Practical Advice for Getting Ready to Sell
Whether you’re three weeks or three months away from listing, here are a few steps that will help:
- Start decluttering: One cupboard at a time. Less stuff makes homes look more spacious.
- Get a sense of your property’s value: Look at recent local sales (not just listed prices). Request a Comparative Market Analysis from me.
- Speak with your bank or broker: Understand your equity and what you can afford next.
- Collect your paperwork: Rates notices, renovation receipts, appliance warranties.
- Consider minor upgrades: Paint touch-ups, garden refreshes, or replacing dated fittings.
- Look into professional styling: It can make a noticeable difference in price and time on market.
What Most Agents Don’t Say About Deposits
Plenty of agents celebrate big deposits as a sign of strength, but they won’t always explain what it legally means for you. Accepting more than 10% may expose you to more risk, not less.
You deserve an agent who tells you the whole story, not just the headline, someone who understands the legal, emotional, and financial weight of the decision you’re making.
That’s my approach. Calm. Honest. Local.
Selling Gold Coast Property Doesn’t Have to Be Complicated
You’re not just selling a house, you’re navigating a significant life transition. And the last thing you need is legal surprises or rushed decisions.
Whether you’re ready to list or still asking “what if,” you deserve clear, practical advice tailored to your situation.
Understanding how deposits work, especially those over 10%, is one of those make-or-break moments. Obtaining accurate information now could save you from legal headaches later.
When you’re ready, I’m here. No pressure. No jargon. Just experience, insight, and a genuine understanding of the Gold Coast property market.
THIS IS HOW YOUR JOURNEY TO A SUCCESSFUL GOLD COAST PROPERTY SALE STARTS
My simplified guide below will take you through a 20-step process for selling your property anywhere on the Gold Coast;
I proudly sell homes across the entire coast.
1. PREPARING YOUR GOLD COAST PROPERTY FOR SALE + SOME OF THE LEGAL REQUIREMENTS
- Tidying gardens and decluttering everything inside and out.
- All homes for sale, are legally required to have hardwired photoelectric, interconnected smoke alarms.
Non-removable 10-year battery smoke alarms can be installed as an alternative.
- By law, you are required to complete a pre-contractual seller’s disclosure statement: generally related to limitations, restraints, or defects in the property title, such as easements, covenants, leasing, zoning, etc.
- A pool safety certificate is also required if you have a swimming pool or if the property has a shared swimming pool (Body Corporate).
2. COMPARATIVE MARKET ANALYSIS REPORT FOR YOUR GOLD COAST PROPERTY
After showing me around your property, I will provide you with a Comparative Market Analysis (CMA) report. This is a detailed, legally required analysis of your home’s market value.
The CMA is based on recently sold and for-sale properties similar to yours in the immediate area. I will need to view your home to prepare this report.
3. SETTING A MARKETING BUDGET FOR YOUR GOLD COAST HOME
The third step in selling your home is to create a marketing budget.
By law, this must be based on actual costs.
There are various marketing options to consider, such as:
– Internal, External and Drone Photography.
– Property and House Plans show potential buyers the exact layout of your home and property.
– Internet Advertising on platforms such as RealEstate.com.au, Domain.com.au, Facebook.com, Instagram.com, etc.
– For Sale Sign on the street is still essential to attracting potential buyers. Even though many buyers start their search online, they often drive around neighbourhoods to see what’s available.
A simple fact: Not having a For Sale sign can significantly reduce the number of people who see your property and may be interested in buying it.
4. PREPARING AND APPROVING THE FORM 6 AGREEMENT WHEN SELLING A GOLD COAST PROPERTY
A Form 6 Agreement is a document provided by the Queensland State Government. It outlines all relevant details of the property sale, including the marketing budget.
Our administration team will prepare this form for you and send it for your review and approval.
5. PAYING THE MARKETING BUDGET FOR YOUR GOLD COAST PROPERTY
Once you have approved the Form 6 Agreement, the next step is to pay for the marketing budget that you have chosen.
6. STARTING THE ADVERTISING PROCESS
Once your payment is received, the advertising campaign will commence.
Advertising strategies will align with the choices you made within your marketing budget.
7. MONITORING MARKET RESPONSE
If your property hasn’t received offers within 30 days, don’t assume there’s no interest.
It often means the price isn’t aligned with what buyers are willing to pay at this time.
This is your signal to review and adjust your pricing strategy so your home remains competitive and receives the attention it deserves.
8. ARRANGING BUYER VIEWINGS
When buyers express interest in your property, viewings will be arranged to allow them to see your home in person; you need to be away from the property during these viewings.
This helps potential buyers feel relaxed and visualise themselves as the new owners, thereby forming a deeper connection with your property.
9. CONSIDERING A BUYER’S OFFER
When you receive an offer on your home, it means a buyer is serious and ready to move forward at a certain price.
This is a key moment in your selling journey. Take the time to go over the offer carefully.
Look beyond the price; check the terms, conditions, and settlement timeframes. Make sure it works for you before accepting, countering, or declining.
10. ACCEPT, COUNTER, REJECT
When an offer is presented, you will need to respond by accepting, countering, or rejecting it.
Accepting locks in the agreed-upon price and terms.
Countering proposes changes and initiates further negotiations. If countering, present revised terms clearly; open, respectful communication is key for a smooth sale.
Rejecting means the offer is unacceptable; in this case, respond promptly and professionally, explaining your reasoning for the decision.
11. YOUR LEGALITIES
When you finally accept an offer, you will engage your conveyancer or solicitor to facilitate the legal requirements to complete the sale.
If you are part of a Body Corporate, you will need to provide a Disclosure Statement from them.
Your solicitor will use PEXA to settle your property. Part of the process requires Verification of Identity. Also, anyone selling a property must complete an ATO Clearance Certificate.
12. BUYER’S DEPOSIT
The buyer’s deposit is a crucial step in the property purchase process; it will be held in the agency’s Trust account.
This is a tangible expression of the buyer’s commitment to purchase your property.
13. BUILDING AND PEST INSPECTIONS
Typically, a buyer will arrange for a building and pest inspection report to be completed, usually within 14 days of the contract date.
Additionally, they may have the contract subject to finance, which is generally applicable for 21 days from the contract date.
14. COMPLETING YOUR GOLD COAST PROPERTY SALE
Based on the outcome of the building and pest inspection report, as well as any finance being sought, the buyer will proceed with their offer or withdraw it.
At this point, the sale either falls through or becomes unconditional.
15. LOOKING FOR YOUR NEW PROPERTY
If the sale becomes unconditional, it is time to start looking for a new property. Remember, there is no need to rush.
It is essential that you take your time, as this needs to be a very considered purchase.
Your new home is of substantial value and can be costly if you change your mind. Something you may want to investigate is Short-Term Bridging Loans.
16. ALTERNATIVES YOU SHOULD CONSIDER
An alternative to seriously consider when deciding where to live between selling and buying is renting while you look for a new property.
Renting for a short period gives you breathing room; it allows you time to clear your head, make a confident, considered decision, and ultimately buy where you truly want to live, with no pressure or panic.
17. TIME FOR YOU TO MOVE
Leaving your home opens doors to a new chapter full of new beginnings. Embrace the excitement of a fresh start and cherish the memories you’ve made.
Every box you pack brings you one step closer to a new adventure full of possibilities that lie ahead.
18. YOUR SALE CONCLUDES
The culmination of the property sale is settlement; it marks the transfer of the property to the new buyer.
As the final chapter concludes, this marks a sense of achievement: your property has now SOLD.
19. YOUR FUTURE OPTIONS
If you have chosen to rent, you will continue to look for and eventually purchase a property, apartment, or perhaps even buy land and build; now there’s something to consider.
20. TIME TO UNWIND AND MAKE YOUR NEW HOME YOUR OWN
As you unpack and furnish your new home, embrace the gradual process of creating your haven.
Enjoy the transformation, one room at a time.
Relax in the tranquillity of your surroundings and immerse yourself in the gentle sounds of your new neighbourhood.
Explore the nearby parks and cafes; enjoy the unique charm of your new community.
Remember, settling in is a journey in itself; it’s not a race. Embrace the process of creating a home that reflects your unique style and personality.
Whether you’re downsizing, relocating or just ready to move on, I’ll guide you through every step of selling your Gold Coast home with confidence and ease.
Navigating the intricacies of selling your property can be complex, but it doesn’t have to be.
My 20-step guide provides a simplified general overview; as you would naturally expect, your steps may vary.
Author – Craig Douglas
Are you ready for a conversation about selling your Gold Coast home?
Let’s get you Selling
LET’S GET YOU SOLD
Craig Douglas 0418 189 963
Professional | Knowledgeable | Experienced
You can find me working at a Boutique Real Estate Agency
These are just some of the suburbs that I proudly sell homes in:
Reedy Creek
Please Note: The information contained in this document is for general information purposes only and does not constitute legal advice. The laws and regulations governing the sale of property in Queensland are complex and constantly changing. It is important to seek the advice of a qualified property lawyer or conveyancer before making any decisions about the sale of your property. This document does not take into account your individual circumstances and may not apply to your situation. By reading this document you agree that you have not relied on the information contained herein and that you will seek independent legal advice before taking any action.
This page was proudly created by Craig Douglas, your local independent Gold Coast real estate agent, working for a Boutique Real Estate Agency. Selling residential and commercial properties, from those that are awe-inspiring, through to a diamond-in-the-rough, otherwise known as a “renovator’s delight“.
I negotiate and sell on behalf of property owners who want to get the best possible price, with the least amount of hassle. Let’s talk about the process of selling your property over a coffee to get you started – 0418 189 963
