By Julian & Renee (Australia) – with writing support from Alberto Aldana (Colombia)
The process of purchasing property in NSW, whether in Blacktown, Schofields, Kellyville Ridge, Rouse Hill, or Windsor, always involves strict legal timelines. One of the most critical stages in any transaction is the payment of the deposit. From a conveyancing perspective, both purchaser and vendor rely on the deposit to secure the deal, while sales agents often negotiate flexible arrangements such as split deposits to facilitate a purchase. However, flexibility in payment timing can carry significant legal risk. The well-known case Alexakis v Wan [2021] NSWSC 367, recently upheld on appeal, is a clear warning that deposit dates are not suggestions—they are binding legal deadlines that must be strictly complied with.
The buyer agreed to purchase a property in Vaucluse for $4,830,000 and negotiated a split deposit to avoid paying the full amount upfront. Under the agreement, the purchaser was required to pay an initial $150,000 upon exchange of contracts, with a second payment of $91,500 due “on the 4th month after the contract date.”
Many purchasers assume that a “month” means any time within that calendar month. However, this is incorrect under NSW law. A “month” refers to the corresponding numerical day in the following month. Therefore, four months after signing means the same numerical date four months later. In this case, the final payment was due on 4 August, not at the end of August as the purchaser assumed.
The situation was made more difficult because the due date fell on a Sunday. While many deadlines shift to the next business day, this does not apply to deposit payments under the standard NSW contract. As a result, the payment was required on Sunday, not Monday. The consequences were immediate and severe. When the purchaser failed to pay on time, the vendor terminated the contract without notice. This led to serious outcomes:
- The purchaser lost the property entirely.
- The seller retained the full deposit of $241,500 already paid.
- The Court did not provide relief, finding the delay to be careless and confirming that deposit timing is an essential term, meaning even a minor delay can amount to a serious breach.
This situation can affect anyone, whether a first-home buyer in The Ponds or Riverstone, or an investor purchasing in Norwest, Castle Hill, or Box Hill. Vendors also face risks when agreeing to split deposits, as delayed payments can create uncertainty in settlement planning. When negotiating flexible deposit terms, agents must ensure clients clearly understand the legal timelines involved, as misinterpreting a single date can result in significant financial loss.
Julian and Renee from Flash Conveyancing are specialists in property transactions throughout New South Wales. With extensive experience working with local councils including Blacktown, Hawkesbury, Blue Mountains, The Hills, Hornsby, and Parramatta, they bring a personalised approach to every settlement.
The team works closely with buyers, sellers, and agents to ensure all deadlines are carefully monitored, payment timing is confirmed, and the risk of costly errors is minimised. This helps buyers in areas such as Glenwood, Marsden Park, Quakers Hill, and Bella Vista avoid the type of deposit mistake that can turn a property purchase into a six-figure loss.