Claiming deposit

Discussion in 'The Buying & Selling Process' started by Fernfurn, 28th Jan, 2020.

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  1. Fernfurn

    Fernfurn Well-Known Member

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    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?
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    what?

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

    Fernfurn Well-Known Member

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

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    what are you talking about 'apply'?
     
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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  6. Fernfurn

    Fernfurn Well-Known Member

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    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.
     
  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    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.
     
  8. Fernfurn

    Fernfurn Well-Known Member

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    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?
     
  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    see above. I have answered this.
     
  10. thatbum

    thatbum Well-Known Member

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    Odd. Why would a purchaser agree to this?
     
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  11. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    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
     
  12. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    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
     
  13. KateAshmor

    KateAshmor Victorian Conveyancing Lawyer Business Member

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    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.
     
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  14. Propagate

    Propagate Well-Known Member

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    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
     
  15. The Y-man

    The Y-man Moderator Staff Member

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    It's funny, I thought it was Sec 21 too ~~ maybe 1 and 7 look similar on the forms? :D:D:D


    The Y-man
     
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  16. The Y-man

    The Y-man Moderator Staff Member

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    This will be important, because without it, a failure to settle by the vendor could mean you're chasing the deposit back as well as potentially any work you did to the property etc!

    The Y-man
     
  17. TMNT

    TMNT Well-Known Member

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    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
     
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  18. The Y-man

    The Y-man Moderator Staff Member

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    Yep - like for their deposit on their next property.

    The Y-man
     
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