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Buyers GuideThe next step is to sign a Private Contract. This will usually happen within a few days of the owner accepting your offer. This is when you pay the deposit which is usually around 6 - 10% of the total price but will depend on what has been agreed between you and the owner. It is on the Private Contract that the true purchase price is shown. On all other paperwork regarding the sale the declared price is shown. This difference is basically to reduce the amount of capital gains tax that the seller has to pay and is quite normal. If you do not complete the sale then you will lose the deposit but if the seller pulls out of the sale then they have to pay you back double the amount of the deposit as compensation.
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