Most Contracts require the Buyer to pay a total deposit of up to 10% of the Purchase Price.
Payment of the deposit is a sign of your intention to proceed with the Contract. If the Contract becomes unconditional and you later default under the Contract then the Seller may be entitled to forfeit the deposit and sue you for damages.
If you were to terminate for valid reasons in accordance with the Contract, then the deposit would be repayable to you.
This deposit is normally kept in the trust account of the real estate agent or the solicitor for the Seller.
If the Deposit is not paid on time, you will be in fundamental breach of the Contract and the Seller will be able to terminate the Contract and forfeit the Deposit paid at any time prior to completion. The Seller may also be able to claim damages.