Down Payment Receipt Agreement

Proof of the real estate deposit is a receipt for funds made available to a seller by a buyer as a first payment for a property. A down payment is a percentage of the total sale price of the property concerned and must be paid during the closing process. Most important information about the sale is expressed in a sales contract, but proof of down payment is a useful document for the buyer to keep his records. The receipt shows the date of the down payment, the amount of the down payment (and the percentage it covers for the total sale price), the buyer`s name and address, and the seller`s name and address. Deposit documents can enable creative business practices. Companies may want to allow customers to test their cars over a longer period of time. This so-called “take home" period increases the probability of a sale even before the future owner has paid for the vehicle or even qualified for the loan. The proof of deposit may have provisions requiring the buyer to leave a small down payment based on the credit application for the balance within a specified period of time. Deposit documents can be used by service companies to get an advance on equipment and work.

Some services and projects, such as the commissioning of custom furniture, carpentry, artwork or jewelry, may require a security deposit in advance. The artist or worker can use this deposit to buy materials, or as a serious gesture from the buyer they pay the balance. These types of deposits are generally non-refundable, but are a discount to the full purchase price of the item or services. Businesses can use the proof of deposit in many ways. Since it is possible to sign a legally binding contract, the proof of deposit, like any other contract, may contain provisions on this subject. The expiry date, the additional conditions and the legal provisions can all be written in small print as part of the proof of deposit. In this way, it becomes a fully legally binding agreement and it can be much more versatile and adapted to adapt the scenario in question. In addition to the purchase of goods and services, deposits are often used in the concept of bonds. Bonds are sums of money held by a landlord over a longer period of time to ensure that the tenants of the property comply with certain contractual conditions.

A separate contract defines precisely the conditions applicable to the surety, but usually a review of the property is carried out at the beginning of a tenancy period and then again at the end. As long as the tenant passes both inspections, he will recover the deposit in its entirety.