What this document is
A deposit agreement captures a moment that is otherwise dangerously informal: one person hands over part of the price to reserve an item, and both sides walk away with different assumptions. The buyer assumes the money comes back if plans change; the seller assumes it compensates them for turning other buyers away. This document settles the question in advance — amount, deadline for the balance, and the exact conditions under which the deposit is refunded or kept.
It works for any reserved purchase between individuals: THB 3,000 down on a THB 28,000 motorbike while the buyer waits for payday, PHP 5,000 to hold a phone until the weekend, or IDR 1,000,000 on a used laptop pending a technician's check. The agreement also doubles as the buyer's receipt, which matters because deposits are usually paid in cash or instant transfer with nothing else in writing.
When to use it
- A buyer wants you to hold an item and stop offering it to others while they arrange full payment.
- You are the buyer paying a deposit and want written confirmation of the price, the deadline, and the refund rules.
- A deposit on a vehicle pending an inspection or a finance payoff check, where refund conditions must be spelled out.
- Reserving an item at an agreed price so the seller cannot raise it before completion.
- Any reservation where the balance will be paid later than a few days away.
When not to use it
- Rental deposits for rooms or houses — use the rental deposit receipt, which fits how landlord deposits actually work.
- A deposit for freelance or project work, where a project deposit agreement ties the money to deliverables.
- When the 'deposit' is really the first installment of an agreed purchase — use an installment payment agreement so missed payments are handled properly.
- Situations where the seller's ownership of the item is in doubt — resolve that before reserving anything.
Information you will need
- Full names and ID details of the person paying and the person receiving the deposit
- Description of the item being reserved, with serial or registration numbers where relevant
- The full agreed price of the item
- The deposit amount, the payment method, and the date it was paid
- The deadline for paying the balance and completing the purchase
- Conditions under which the deposit is refunded in full, in part, or forfeited
- What happens if the seller withdraws or sells the item to someone else
- How the balance will be paid and where handover will take place
Clauses included
Parties
Identifies who paid and who received the deposit, with ID details for both.
Reserved item and price
Describes the item and locks in the total price the deposit is securing.
Deposit amount and receipt
States the amount, date, and method of the deposit, serving as the payer's proof of payment.
Completion deadline
Sets the date by which the balance must be paid, and whether any extension is possible.
Refund and forfeiture rules
Spells out when the deposit comes back and when it is kept — the clause the whole document exists for.
Seller's obligations
Commits the seller to hold the item, not sell it elsewhere, and not change the price before the deadline.
Failed inspection or condition
Covers what happens if an agreed inspection or check reveals problems — usually a full refund.
What the guided builder asks
- 1PartiesWho is providing the money?
- 2AmountHow much is being provided?
- 3RepaymentWill it be repaid once or in installments?
- 4InterestWill interest apply?
- 5Late paymentWhat happens if a payment is late?
- 6Additional termsAdditional terms (optional)
- 7ReviewClauses included
- 8ExportExport PDF · Export DOCX
How to sign it
Sign at the moment the deposit changes hands, with both parties keeping a copy. If the deposit is paid by transfer or e-wallet, note the reference in the agreement; if cash, the signed agreement itself acts as the receipt — date it and state the amount received in both figures and words.
Photograph the item on the same day, ideally with any serial number visible. If the deal collapses later, the dispute is usually about condition or identity as much as money, and a dated photo removes doubt about what was reserved.
When the balance is paid and the sale completes, sign a final receipt or a short sale agreement referring back to this deposit — the paper trail should show the deposit and the balance adding up to the full price.
Common mistakes
- Paying a deposit with no written refund rule, then discovering the seller considers every deposit non-refundable.
- Leaving the completion deadline vague ('in a few weeks'), which makes forfeiture impossible to apply fairly.
- Taking a deposit and continuing to advertise the item to other buyers.
- Not stating what happens if the seller backs out — a fair agreement usually requires the seller to return the deposit, sometimes with a penalty.
- Treating a large first payment as a 'deposit' when it is really an installment purchase that needs a proper schedule.
Frequently asked questions
Is a deposit refundable if the buyer simply changes their mind?
By default, in many places a deposit paid to secure a purchase can be kept by the seller if the buyer withdraws without cause — but practice varies and arguments are common. The safe answer is that your written agreement decides: state plainly whether a change of mind forfeits the deposit, and both sides know where they stand.
What happens to the deposit if the seller sells the item to someone else?
The seller broke the reservation, so at minimum the deposit should be returned in full, and agreements often add a penalty — for example, returning double the deposit. Whatever rule you choose, write it down; without a written term, recovering even the original deposit can turn into a stalemate.
How much should a deposit be?
There is no fixed rule, but 5–20% of the price is common for everyday items — say THB 2,000 to 5,000 on a THB 30,000 motorbike. It should be large enough to show the buyer is serious and compensate the seller for waiting, but small enough that forfeiting it is a proportionate outcome rather than a catastrophe.
Does the deposit count toward the final price?
Almost always yes, and the agreement should say so explicitly: 'the deposit forms part of the purchase price, with the balance of X due by the deadline.' Confusion on this point — whether the deposit was on top of the price or part of it — is one of the most common deposit disputes.
The seller took my deposit and stopped replying. What can I do?
Gather your evidence first: the signed agreement, the payment record, and the chat history. Send a written request for the refund with a clear deadline — a polite but firm message often works once the other side sees you have documentation. If it does not, your evidence is exactly what small-claims processes or police mediation in many countries are built around.
Can the deposit be paid by e-wallet or bank transfer?
Yes, and it is actually better than cash because the transaction record is automatic. Put the transfer reference into the agreement and keep the slip. If cash is unavoidable, count it together and make sure the signed agreement states the exact amount received.
This template provides general document assistance and is not a substitute for legal advice. Legal requirements vary by jurisdiction, transaction type, and individual circumstances.