The home-buying process varies greatly from country to country. An estate agent typically charges the seller a certain percentage of the sale price, plus associated costs such as advertising. As a buyer, once you have found a suitable property and have had surveys completed, you make an offer. An offer is not legally binding until the contract has been signed, although you will usually be asked to pay a deposit to show good faith. This is where the seller reneges on their agreement to sell by selling to a higher bidder.
Deposits are refundable if the sale falls through.
If you are buying a new house off the plans, you will be asked to pay a booking deposit. This can be as much as 10 per cent and is deducted from the final price. How the remainder is paid varies around the country. Homebond, run by the construction industry, provides limited guarantees on behalf of registered builders against the loss of a deposit and a portion of other payments in the event of the bankruptcy or liquidation of your builder. Their cover also includes some warranties against certain structural defects.