What Is the Deposit for Off-the-Plan in Rhodes?

The Standard 10 Percent Deposit Explained

Across NSW, the standard deposit for off-the-plan apartment contracts is 10 percent of the purchase price. This is the figure you will see in almost every Rhodes off-the-plan contract from Billbergia, Meriton, Lendlease, and the other active Sydney developers.

Deposit amounts for typical Rhodes off-the-plan prices in 2026:

The deposit is paid in full at contract exchange, after the cooling-off period or section 66W waiver. The balance (90 percent) is paid at settlement when the building is complete, typically 18 to 36 months later.

Holding Deposit vs Full Exchange Deposit

Most Rhodes off-the-plan purchases involve two deposit moments: a small holding deposit when you reserve the apartment, and the full 10 percent at exchange.

Holding deposit:

• Typical amount: $1,000 to $5,000.
• Paid when you reserve the specific apartment, before your solicitor reviews the contract.
• Refundable if you choose not to proceed after contract review.
• Credited against the 10 percent deposit at exchange (so you only top up the difference).

Full exchange deposit:

• 10 percent of the purchase price, less any holding deposit already paid.
• Paid by bank transfer or cheque on or around the exchange date.
• Triggers the cooling-off period (10 business days for off-the-plan in NSW).
• Becomes non-refundable after cooling-off, subject to the rescission rights in section 66ZL Conveyancing Act 1919 (NSW).

The sequence is: visit display suite, choose apartment, sign reservation and pay holding deposit, solicitor reviews contract over 5 to 10 business days, exchange contracts and pay balance of 10 percent, enter 10 business day cooling-off, and then you are committed.

Where the Deposit Sits (Trust Account Rules)

NSW law strictly regulates how off-the-plan deposits are held. The relevant regulations sit in the Trust Account Act 1980 (NSW) and section 55 of the Conveyancing Act 1919 (NSW).

Where your deposit is held:

• In the developer’s solicitor trust account, or
• In a licensed real estate agent’s trust account (if the deal is brokered by an agent).

Both account types are regulated by NSW Fair Trading and subject to annual audit. The deposit cannot be released to the developer during construction; it sits in trust until settlement.

Interest on the deposit:

• Trust accounts earn interest at the institution’s standard rate.
• By default, interest is retained by the trustee (the solicitor or agent) and remitted to the NSW Fair Trading Statutory Interest Account, which funds consumer protection programs.
• In some contracts, the buyer can negotiate to retain interest; this is rare in standard developer contracts but more common in private off-the-plan transactions.

The trust account structure is the buyer’s primary protection during the construction period; even if the developer becomes insolvent, your deposit remains in trust and is recoverable.

Deposit Bonds and Bank Guarantees

For buyers who do not want to tie up cash for 18 to 36 months, two alternatives to a cash deposit are commonly accepted on Rhodes off-the-plan purchases.

Deposit bonds (deposit guarantees):

• Issued by insurers like QBE, Aon, or specialist providers.
• Cost: typically 1 to 2 percent of the deposit value annually, or a flat fee for the construction period.
• The bond is a written guarantee to the developer that the deposit will be paid at settlement.
• You keep your cash invested elsewhere until settlement.
• Approval required from both the bond provider and the developer.

Bank guarantees:

• Issued by your bank against secured assets (typically term deposit or property equity).
• Cost: bank establishment fee plus annual fee, typically 0.5 to 1.5 percent of guarantee value.
• Effectively the same function as a deposit bond but with the bank as guarantor.
• More common for high-net-worth buyers and corporate purchasers.

Example: on a $90,000 deposit held for 24 months, a deposit bond at 1.5 percent annual costs $2,700; meanwhile your $90,000 cash earns 4.5 percent in a term deposit ($8,100 over 24 months). Net advantage: approximately $5,400.

Reduced Deposit Options (5 Percent)

Some Rhodes developers, including Billbergia in selected releases, offer reduced 5 percent deposits for qualified buyers. The reduced deposit is typically subject to:

• Pre-approval from a panel lender at the time of exchange.
• First home buyer or owner-occupier status.
• Apartment value within a specific price band.
• Available stages or releases (not always offered across the full portfolio).

Reduced deposit examples on Rhodes off-the-plan stock at $900,000:

• Standard 10 percent deposit: $90,000.
• 5 percent reduced deposit: $45,000.
• Cash freed up for first home buyer fitout, stamp duty, or general reserves: $45,000.

For first home buyers using the Commonwealth First Home Guarantee scheme, the 5 percent deposit can stack with that scheme to dramatically reduce upfront cash requirements. Ask the developer or your broker about specific eligibility on current releases.

Forfeiture Rules: Cooling-Off and Settlement Failure

The deposit is the buyer’s financial commitment to complete the purchase. Two scenarios trigger partial or full forfeiture.

If you cool off during the NSW 10 business day cooling-off period:

• You forfeit 0.25 percent of the purchase price.
• On a $900,000 apartment, this is $2,250.
• The balance of your deposit ($87,750) is returned.
• The cooling-off right applies to off-the-plan contracts unless waived by a section 66W certificate from your solicitor.

If you fail to settle at completion:

• The developer can retain your full 10 percent deposit ($90,000 on a $900,000 apartment).
• The developer can pursue you for additional losses if they resell at a lower price.
• The developer can pursue you for interest on overdue settlement at the rate specified in the contract (typically 12 to 16 percent annual).

The most common reason for settlement failure is finance falling through between exchange and completion. Mitigations:

• Maintain pre-approval throughout the construction period; renew every 6 months.
• Confirm unconditional finance 30 to 60 days before notice to complete.
• Have a contingency lender option pre-screened.
• Keep your debt-to-income ratio stable during the build period.

Deposit Protection if the Developer Fails

The structural protection for off-the-plan buyers in NSW is strong, but not absolute. Three scenarios where the developer fails and the deposit becomes relevant:

Sunset clause rescission:

• If construction is not complete by the sunset date (typically 5 years from exchange), you can rescind under section 66ZL of the Conveyancing Act 1919 (NSW).
• Your full deposit is returned with interest.
• This is the buyer’s primary protection against indefinite construction delay.

Developer insolvency:

• Your deposit sits in the developer’s solicitor trust account, not the developer’s operating accounts.
• Trust account funds are protected from insolvency proceedings.
• An administrator may take over the project and complete it, or sell it to another developer.
• Delays in recovering your deposit during administration are possible but rare; the trust structure usually protects it.

Material contract breach by the developer:

• If the developer substantively departs from the contract (e.g. major reduction in apartment size, removal of agreed inclusions), you may have grounds to rescind under common law contract principles.
• Engage your solicitor immediately; rescission rights are time-sensitive.