Buyer Wants to Change the Deposit After Signing?

The sale is signed, the open home board is down, and then the buyer asks to cut the deposit or pay it weeks later. A friendly ‘yes’ can change a term you were relying on, so this is one request to check before answering.

The short answer: A buyer can ask to reduce the deposit or move its due date after signing, but they cannot change the signed contract on their own. In Victoria, there is no compulsory deposit percentage for every residential sale, although 10% is common. If the original deposit deadline is missed without an agreed variation, the response depends on the contract; under the standard Victorian contract, a written default notice generally gives 14 days to remedy the default, pay applicable interest and reasonable costs.

Can a buyer change the deposit after signing?

A buyer can request a change, but the seller does not have to accept it. Once the contract is signed by both parties, the deposit amount, due date and payment arrangements form part of the deal.

That means a practical problem is not the same thing as a contractual change. The buyer might say their daily bank transfer limit is too low, their sale funds have not cleared, or they now want to pay 5% instead of 10%. Those reasons explain the request, but the original term remains unless the seller agrees to change it.

Victorian rules do not impose one deposit percentage for every home sale. Consumer Affairs Victoria says 10% is usual, and a contract can provide for a part deposit with the balance due on a stated date. What matters for your sale is the wording that was actually signed.

Before replying, have your conveyancer read the signed contract and the proposed variation together. The safest answer often depends on special conditions, any amount already paid and what else is happening in the transaction.

Do sellers have to agree to a smaller or later deposit?

No. A seller can accept the request, reject it, or offer different terms.

It helps to separate two issues that are often bundled together:

A smaller deposit: the buyer provides less contractual security than originally agreed.
A later deposit: the amount stays the same, but some or all of it is paid after the original deadline.

A smaller deposit changes the security the seller agreed to hold and the amount actually sitting with the stakeholder. A later deposit leaves the seller without the agreed security for longer and may bring the payment date closer to finance, building inspection or settlement deadlines.

The request can also affect other parts of the sale. A buyer might ask for a reduced deposit while finance is still uncertain, or offer to remove a condition in exchange for extra time. Those trade offs should be reviewed together rather than accepted through a quick text message.

What should a seller check before answering?

Start with the signed documents and actual payment records. Your conveyancer needs to see what was agreed, what has been received and exactly what the buyer now wants.

Send your conveyancer:

the full signed contract, including special conditions
the Section 32 vendor statement
the buyer’s request in its original written form
any deposit receipt or trust account confirmation
the original deposit deadline and the new date proposed
details of any connected finance, inspection, possession or settlement request
details of your own linked purchase or another deadline affected by the change.

Ask the estate agent or other stakeholder to confirm what money has actually arrived. Consumer Affairs Victoria states that an estate agent must immediately tell a seller if a deposit required under the contract has not been received. A screenshot showing that the buyer attempted a transfer is useful evidence, but it is not the same as confirmation that cleared funds reached the stakeholder.

In our practice, we’ve seen sellers feel pressure to say ‘no worries’ because a buyer says a transfer limit will reset tomorrow. The safer course is to acknowledge the request, confirm it is being reviewed and avoid saying that the original deadline has moved until a clear variation is agreed.

Is reducing the deposit different from extending the deadline?

Yes. Reducing the deposit changes how much security the buyer provides. Extending the deadline changes when that security must be provided.

Take a Preston home selling for $900,000 with a $90,000 deposit. If the buyer has paid $20,000 and asks to reduce the total deposit to $45,000, the seller is being asked to accept half the original deposit. That may matter if the buyer later fails to complete.

Now keep the deposit at $90,000 but let the buyer pay the remaining $70,000 ten days later. The amount is unchanged if the money arrives, but the seller carries the unpaid risk for longer.

A request to ‘sort out the deposit later’ is too loose. A proper proposal should identify the amount already paid, the balance still due, the new deadline, where payment must be made and whether any other contract term changes.

If the discussion has raised a broader question about 5%, 10% or another figure, it may help to read about how deposit amounts are negotiated in Victoria. That is separate from deciding whether to alter a deposit that has already been agreed in a signed contract.

What conditions can a seller put on an agreement?

If you are open to the request, you can counter with precise terms rather than accepting the buyer’s first proposal.

A written variation may need to record:

the revised deposit amount or balance
the exact payment date and, where needed, time
the stakeholder and payment destination
the amount already received
whether the change affects the amount, the deadline, or both
that all other contract terms remain unchanged
how any linked finance, inspection or settlement date is treated.

Do not make up a penalty or automatic cancellation consequence in an email. The wording needs to fit the signed contract. If the buyer is already in default or there is a real risk that the sale may need to be ended, the matter may also need advice from a property lawyer.

How should a deposit change be documented?

Use a clear written variation that identifies the contract and the exact term being changed. It should leave as little room as possible for competing versions of what the parties meant.

An agent’s text, a buyer’s email and a phone call can easily produce three different understandings. Was the seller agreeing to a 5% deposit in total, or 5% now and another 5% later? Was the due date formally extended, or was a one day delay merely tolerated? Did anything happen to settlement?

Your conveyancer can put the agreed position into one document and make sure the stakeholder is working from the same instructions. Keep the buyer’s request, your response, the payment evidence and the final variation together with the sale file.

The deposit is generally held by the seller’s estate agent, conveyancer or legal practitioner in trust until settlement, subject to any lawful early release process. If you want a plain language explanation of the stakeholder’s role, see who holds a house deposit in Victoria.

What if the buyer misses the original deposit deadline?

Do not assume the contract has automatically ended. Send the signed contract, payment record and all communications to your conveyancer promptly.

The standard Victorian contract contains a formal default process. A written default notice generally identifies the breach and gives the defaulting party 14 days to remedy it, together with payment of applicable interest and reasonable costs. The current contract also contains separate provisions dealing with interest and what may happen if a default is not remedied.

Your own contract can change the standard conditions, so the wording must be checked before a notice is prepared or served. The history also matters. If the seller has already agreed to extra time, or messages suggest that late payment was accepted, that can affect the next step.

If a valid default is not remedied and the contract is later ended, rights concerning the deposit may arise. That is the stage where deposit forfeiture in Victoria can become relevant. It should not be treated as the automatic answer to a buyer who has merely asked for a change before the deadline.

What if you are buying another home at the same time?

Tell your conveyancer about the linked purchase before agreeing to any change. A delayed or reduced deposit on your sale can have practical consequences for the purchase you are trying to complete.

Picture a family selling in Coburg and buying in Reservoir. Their buyer asks to defer most of the deposit until a few days before the family’s own purchase settles. Agreeing may keep the sale moving, but it also leaves less time to react if the promised money does not arrive.

Your conveyancer can review both contracts and the key dates. Funding questions should go to your lender or financial adviser. The seller should understand both sides of the move before changing the security in the first contract.

How can a seller reply without agreeing too early?

Acknowledge the request, but keep the existing contract position clear. A short response can say the seller is obtaining conveyancing advice and the current deposit terms remain unchanged unless a written variation is agreed.

Then answer three questions:

What exact amount or date does the buyer want changed?
What risk does that create for this sale and any linked purchase?
If you are willing to agree, what written terms would make the change acceptable?

That keeps the conversation calm while preserving a clear record.

Frequently asked questions

Can a buyer ask to reduce the deposit after signing a Victorian contract?

Yes. A buyer can ask to reduce the deposit after signing, but the seller does not have to agree. The deposit stated in the signed contract remains the starting point unless both parties agree to a clear variation.

Can a buyer pay the house deposit late in Victoria?

A buyer can pay later if the seller agrees to extend the deadline or the contract already permits it. Without an agreed change, missing the due date may amount to a breach, and the seller should have the contract checked before issuing a default notice or taking another enforcement step.

Is a 10% deposit compulsory in Victoria?

No. Victorian law does not set 10% as the compulsory deposit for every residential property sale. Ten per cent is common, but the amount and payment timetable for a particular sale come from the contract agreed by the buyer and seller.

Can the seller agree to a 5% deposit after the contract is signed?

Yes, a seller may agree to reduce an originally larger deposit to 5%, but the change should be recorded clearly. Before agreeing, the seller should understand that accepting a smaller deposit changes the security originally negotiated and the money actually held by the stakeholder.

Does an email change the deposit terms in a property contract?

An email can become evidence of what was discussed or agreed, which is why casual wording can create trouble. A conveyancer prepared written variation should identify the precise deposit amount, new deadline and any terms that remain unchanged.

What happens if the buyer does not pay the deposit on time?

The result depends on the signed contract and any later agreement between the parties. The standard Victorian contract contains interest and default notice provisions, with a 14 day period commonly used to remedy a notified default, but a seller should not assume the sale is automatically over or serve a notice without checking the contract first.

About the Pearson Chambers Conveyancing team

Pearson Chambers Conveyancing assists residential buyers, sellers and property owners across Melbourne and Victoria. Our team prepares and reviews contracts and Section 32 vendor statements, manages deposit issues and guides property matters through settlement. Reviewing a buyer’s request to change a deposit and recording any agreed variation are part of the conveyancing work our team handles day to day.

Sources we consulted

Get the deposit change in writing

If your buyer has asked to reduce the deposit or move its due date, contact Pearson Chambers Conveyancing before you reply. We can review the signed contract and payment record, prepare or check the written variation, and help manage the sale through settlement.

If you are preparing to sell, we can also assist with the contract and Section 32 vendor statement. Email contact@pearsonchambers.com.au.

General information only, current as at the date of publication. Victorian conveyancing rules and legislation change frequently. Please contact the Pearson Chambers Conveyancing team for advice on your specific contract.