An additional deposit clause concerns a further deposit expected when the formal sale and purchase agreement is signed. The Community Legal Information Centre (CLIC) lists this payment among the usual steps at that stage, while the provisional agreement normally records when the formal agreement will be signed.
How to check the clause against the sale timetable
A seller should begin with the date recorded in the provisional agreement for signing the formal agreement. The seller should then locate any additional-deposit wording in the relevant document and check when the payment is said to become due.
The wording matters. CLIC associates the further deposit with the signing of the formal agreement, but the cited guidance does not address what happens if the clause uses a different payment trigger or the signing date changes. If the connection is unclear, the seller should request an explanation rather than infer a deadline.
What the cited guidance does not specify
The cited CLIC materials do not state:
- The amount of the further deposit or any formula for calculating it
- The exact moment “upon signing” is intended to mean
- How the further deposit interacts with deposits already paid
- The payment method or recipient
- Whether the amount is refundable or credited in another way
- What remedy applies if the purchaser fails to pay
These points should be confirmed from the actual sale documents. The word “additional” or “further” alone does not establish the amount, refund position, or consequence of non-payment.
What a seller should do before agreeing
If the clause does not clearly connect the payment to the formal signing date, the seller should obtain independent legal advice and request written clarification of its amount, timing, and consequences. The central point is limited but important: a further deposit is associated with formal-agreement signing, and the provisional agreement normally records that signing date.