the deposit payable? The deposit is payable to the vendor or the vendor's agent. If the The vendor wants it, the agent wants it more and the buyer cannot find it. Is it important? If the agreement is conditional, then, under the Auckland District Law Society standard agreement (the ADLS form), the vendor or the real estate agent holds the deposit until the agreement becomes unconditional or is avoided (avoided means that the contract does not proceed because its conditions have not been satisfied). It is always preferable where an agreement is conditional for the deposit to be paid to someone else (a "stakeholder") such as the vendor's real estate agent or solicitor rather than directly to the vendor. If the agreement is validly avoided by the buyer then the stakeholder must return the deposit in full to the buyer. If the agreement becomes unconditional, then the stakeholder will pay the deposit to the vendor and it will be credited as part of the purchase price. When is the deposit payable? Under the ADLS form of agreement, the deposit is payable immediately both parties sign the agreement unless the agreement states otherwise. It is quite common for the agreement to state that the deposit is not required until the agreement becomes unconditional. This is inserted for the benefit of the buyer. From the vendor's point of view, such a clause is not recommended. It means the vendor will have little recourse if he or she believes the buyer is not