Section 27 Deposit Release
In most Melbourne conveyancing transactions a Vendor is entitled to request for the deposit being held by the agent be released to them prior to settlement provided they have met the obligations of Section 27 of the Sale of Land Act. The Purchaser also has the right to investigate and object where applicable.
This is often the source of conflict and distress as parties often have conflicting feelings about this process. On the one hand where the Vendor is eligible they want and often need access to the monies often as they have bought a new property to move into or wish to draw down their loan. Purchasers often feel that as they haven't yet got their end of the bargain - the property, the deposit should be held by a third party as is, and the Purchaser objects (blocks) the release. For this reason we always advise Vendors under no circumstances should they rely on early release.
We have below outlined some of the general requirements of this request however due to the specific nature and changing legitimisation should not be relied upon for specific transactions. You should always obtain advice specific t your transaction before making commitments dependant on the deposit being released.
Whilst there are many factors that determin eligability below we have outlined the most common creteria required to apply for a deposit to be released, however do not guarantee the release;
where the contract is not subject to any condition enuring for the benefit of the purchaser; and
where the purchaser has accepted title or may be deemed to have accepted title; and
the vendor has supplied information relating to any debts secured against the property as per schedule 1 of the sale of land act; and
those debts do not exceed 80%; and
the vendor is not in default or arrears; and
the purchaser has not made a valid objection
Whilst the particulars above are of a general nature, should you have queries specific to your transaction please contact our office where our staff will ably assist you