Different from the application fee? Price of Deposit and Timing of Payment

The application fee is the money to get the right to purchase preferentially over other buyers when the property you want is found. The amount is about 100,000 yen, and some real estate companies do not charge an application fee.

On the other hand, a deposit is money that is always generated in principle. Here, let's take a look at the role of deposits and when they occur.

What is a deposit?

A deposit is money that you pay when you conclude a sales contract. By paying a deposit along with the purchase contract, it is a rule to give credibility to the intentions of both the seller and the buyer.

Deposit Price

Although the upper limit of the deposit is set at 20% of the purchase price, the market is usually 5-10% of the trading value.

Since the purpose is to secure the conclusion of the contract, it is the money that will be returned to you at the time of settlement and delivery, but in general it is often used for the balance of the purchase price. is.

When to pay the deposit

Let's take a look at the timing of when the deposit is due, following the flow until you purchase a house.

As you can see, the deposit must be paid "before the mortgage loan is issued." This means that you should have at least 5-10% of the property value in cash.

Characteristics of Deposits in Purchasing a Home

In the case of real estate transactions, unless otherwise specified, it is presumed that the deposit is the cancellation deposit. Let's take a closer look at how the cancellation process works.

The Role of the Termination Fee

The Termination Fee is the deposit paid by both parties to the contract to retain the right to terminate. It is paid by the buyer to the seller when the real estate contract is signed.

By setting a cancellation fee, the buyer can cancel the contract without paying damages, regardless of the reason for cancellation. It is important to note that penalties will be incurred even if cancellation is unavoidable.

For example, if you terminate the contract with the buyer, you must waive the deposit. Conversely, in the case of cancellation by the seller, the deposit must be doubled back to the buyer.

Another aspect of the cancellation fee

The cancellation fee has the purpose of preventing the cancellation of the contract by penalties, and on the other hand, it is a remedy that ``can cancel the contract if you let go of the deposit.'' There is also an aspect as

For this reason, especially when the seller is a real estate agent (real estate company) and the buyer is an ordinary person, there is a rule that the deposit must be the cancellation deposit.

What happens if I fail the mortgage examination after paying the deposit?

The timing of the deposit payment is "before the home loan main examination". Therefore, depending on the situation, there may be cases where "even though I paid the deposit, I failed the mortgage examination."

In preparation for such cases, it is common for a real estate sales contract to include a special agreement for the use of mortgage loans. This is a mechanism that if you fail the mortgage examination, you can cancel the contract without penalty and the deposit will be returned to the buyer as it is.

What to do when you can't prepare the deposit

Unless you can make a lump sum payment, you must pay the deposit. However, since the amount of money is large in a housing sales contract, it can be said that there are many cases where it cannot be prepared.

Here are some things to do when you can't prepare a deposit.

Negotiate to reduce the deposit

Although there is an upper limit for the amount of the deposit, there is no special rule for the lower limit. Therefore, if it is judged that the purchase intention of the buyer is high, there is a possibility that the percentage of the down payment will be reduced to some extent.

However, as we have seen, deposits play a very important role. Therefore, it is necessary to avoid large reductions and negotiate carefully.

Temporarily borrow from relatives

Since you need a large amount of cash for the deposit, you can temporarily borrow from your parents. In that case, it is important to exchange IOU properly even between parents and children in order to prevent trouble.

Especially in the case of money lending exceeding 1.1 million yen, even if it is between parent and child, if the interest is not paid properly, it will be considered a "gift" and may be subject to gift tax.

Caution when borrowing with a card loan etc.

In order to prepare a deposit, there is also a method of temporarily borrowing with a card loan etc. You might.

In this examination, the usage status of other loans is also an examination item, so there are cases where the loan is not approved even if it passes the preliminary examination.

One way to postpone the purchase

Considering the previous items, waiting until you can save the deposit is also a valid option. When purchasing a home, you will need to pay other expenses such as registration fees and fire insurance premiums, so it is safer to have a certain amount of cash on hand.

Troubles to be aware of regarding the deposit

Finally, let's check the troubles to be aware of regarding the deposit.

Pay attention to the meaning of "until performance is started"

When exchanging a cancellation notice, the timing of cancellation is stated in the contract as "until performance is started" by the seller. There are many cases where In this case, "fulfillment" means not only "delivery of property" and "starting procedures for application for registration of ownership transfer", but also includes "when the other party orders building materials for a custom-built house". Be careful because there is

In the unlikely event that the performance has been started, "cancellation due to cancellation fee" is not possible. If you cannot negotiate with the seller to cancel the agreement, it will be "cancellation due to breach of contract" and you may be asked for damages. Compensation for damages is generally larger than the deposit, so it is important to check the contract details in advance.

Summary