Claiming deposit

Been a while since I sold anything, so was just wondering, is it still one month before you can claim your share of the deposit?

 

what?

If you sell a property you get the deposit at settlement.

 

Unless its changed, you can apply for the deposit (minus re fees, etc) after one month.

 

what are you talking about 'apply'?

 

Perhaps you are referring to the release to a deposit for selling land in victoria?

There is a 28 day for this
SALE OF LAND ACT 1962 - SECT 27 Release of deposit moneys in certain circumstances

 

No its for sale of houses. After (I think one month, or maybe 28 days) you apply to the real estate agent for early release of deposit, he does the sums to see what is owed over the campaign for advtsg and his commission, then releases the balance of thedeposit to you.

 

That is the release of deposit. I quoted the legislation above.
You still haven't told us which state, but I guess victoria as that is one of the few states that has legislated this.

 

House in Victoria. I dont know if its legislated, it just used to be the practice. Does anyone know if this early release of deposit on sale of house in Vic still applies?

 

see above. I have answered this.

 

Odd. Why would a purchaser agree to this?

 

Yeah . I have seen people authorise a OTP deposit released to a vendor with disastrous consequences. You may have converted a semi-secure deposit (on trust) into a unsecured loan to the vendor.

More odd is asking here and not the solicitor who represents you

 

A lawyer should never recommend their client release a deposit as it is not in the client's interest. It seems to be pretty common in VIC. In NSW it does happen too and I had one client who did it against my advice, but I explained the risks and decided to do it anyway. It ended up fine too

 

It can be in the client’s interest if they are, for example, seeking extra access to the property in order to obtain quotes from tradies, or to start open for inspections prior to settlement. Releasing the deposit can often be part of a mutually favourable deal.

Lodging a caveat on the title is a quick and cheap way to secure a purchaser’s interest, especially if the deposit is released prior to settlement.

 

I could be wrong here, but I seem to remember the purchaser has no choice (VIC) as long as the conditions of the deposit release request are met.

I seem to recall when we bought in 2010 the vendor requested deposit release, I wasn't keen on the idea but our solicitor said tough, they've filled the form in (S21 form memory?) and as all the relevant conditions were met for am S21 we couldn't stop them releasing the deposit to the seller.

EDITED to add - It was Section 27 (should've checked be fore posting, sorry)

EDITED AGAIN - here's a linky - Section 27 Deposit Release - About the Section 27 Process

 

ive heard of this before , and thought it was for those cases where a vendor needed the cash for another property or other cashflow circumstances