You are a new salesperson in an inner city agency and are in the process of negotiating an offer of $425,000 on one of your listed properties. The seller has to agreed to this offer and will accept the purchaser's terms and conditions. The deposit is $42,500 and the purchaser is now concerned about the amount of deposit that is required, and has asked your advice on what happens to this deposit.

1.What is the maximum deposit required under the standard Contract of Sale ?

2.Explain other options for payment of the deposit below ?

3.What happens if the deposit received islessthan the amount stipulated on the Contract for Sale?

4.Where are deposits held by the agent and when is the deposit released?

5.What are the penalties for breaches of trust accounting requirements under the Agents Financial Administration Act 2014?