10. For the purposes of Article 126a(2), point (a), of the CRR, the cash deposit made for a legally binding pre-sale contract should be considered as substantial where the following ratio is equal to or higher than 10%:
- CD: is the cash deposit paid by the purchaser which is subject to forfeiture if the pre-sale contract is terminated;
- SP: is the sale price as indicated in the pre-sale contract.
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Explanatory Text for consultation purposes Structure of the ratio For the sake of simplicity and ease of interpretation, it is proposed to adopt a single relative ratio, expressed as a percentage of the sale price, without caps or floors based on absolute amounts. The assumption behind this option is that the relationship between the significance of the cash deposit for the buyer, and its commitment to convert the pre-sale contract into a sale contract, can always be expressed as a function of the sale price, namely by applying a percentage to the sale price as specified in the c |