When buying a property in Queensland, although there are no legal requirements to pay any form of deposits for the purchase of a property, it is common practice for buyers to pay a deposit when the contract of sale is signed.
As deposits usually involve a large sum of money, and with the advancement of technology, it has now become increasingly common to use a digital payment system, such as Electronic Funds Transfer (“EFT”), to pay the deposit.
By definition, an EFT is the transfer of money from one bank account to another, either within a single financial institution or across multiple institutions, via computer-based systems.
It is a broad term that refers to a number of different transfer methods such as ATM transfers, EFTPOS transfers, and QR code payments, including online payments and transfers.
Deposit Requirements of Property Purchase
In Queensland, while there are no fixed amount or percentage, it is common for the deposit, sometimes split between initial and balance, to be a fraction of the purchase price.
Under section 71 of the Property Law Act 1974 (Qld), the law provides that the maximum percentage of total deposit payable under a sales contract :
- 20% for the sale of a proposed lot (land or apartment) off-the-plan; and
- 10% for all other contracts.
In most cases, the initial deposit is paid on the same day the contract is signed, and the balance deposit is due payable when the contract is unconditional.
In a recent case heard before the District Court of Queensland, the use of EFT to pay the balance deposit on an off-the-plan residential lot was put under the spotlight.
Overview of CK & PT Property Holdings Pty Ltd atf CK & PT Property v Novadeck Pty Ltd [2025] QDC 50
In the recent Court decision, the Court considered whether a deposit paid by EFT had been made in time, and in accordance with the terms of the contract.
CK & PT Property, the buyer, entered a sales contract on 26 August 2021 to purchase an off-the-plan property from the seller, Novadeck Pty Ltd. Under the sales contract :
- An initial deposit of $1,000 was payable upon signing the contract; and
- The balance deposit of $48,990 was due upon satisfaction of the finance condition, turning the contract unconditional.
Key Timeline of Events
On 16 October 2024, CK & PT Property received confirmation of satisfactory finance approval. The same day :
- Approximately 10:32am: CK & PT Property instructed their bank, Macquarie Bank, to transfer the balance deposit of $48,990 by EFT to the deposit holder’s trust account in Westpac.
- 11:50am: CK & PT Property’s conveyancer sent notice to Novadeck Pty Ltd’s solicitor that the finance condition was satisfied and confirmed the deposit payment had been made.
However, the actual movement of funds occurred later in the day :
- 6:06pm: The funds left Macquarie Bank.
- 8:33pm: The funds were received by Westpac, the deposit holders’ bank.
- 9:38pm: The funds were released into the deposit holders’ account.
Point of Contention
By combination of the definition in the Sales Contract, the balance deposit was due by 5pm of 16 October 2024.
However, the balance deposit of $48,990 only reached the deposit holders’ trust account at 9.38pm on 16 October 2024.
The Court’s Ruling in CK & PT Property Holdings Pty Ltd atf CK & PT Property v Novadeck Pty Ltd
The Court ruled that the term “pay” in the context of the contract did not mean actual receipt by the deposit holder, but the action of effecting payment – in this case, giving instructions to the bank to transfer the funds.
The notification given by the plaintiff’s solicitor at 11:50am, confirming the EFT transfer had been initiated, have satisfied the requirements of the contract.
What Should You Do If You Are Unsure About the Terms of Your Property Sales Contract in Queensland?
A property sales contract requires the relevant parties to work on a strict timeline within the tight boundaries of specific requirements.
At HTW Legal Group, we understand the complexities of property law and the importance of clear communication for property transactions. If you are unsure about when and how to pay the deposit for your property purchase, it is always good to ask. Our expert property lawyers specialise in providing practical legal guidance to assist you on your property purchase journey.
📞 Contact HTW Legal Group today for a consultation to ensure you’re getting the property law expertise you deserve.
