Just sold property.. Do i get the deposit?

G'day all.
Property auctioned off a couple of weeks ago. I was told by a few friends that I should be getting the 10% deposit prior to settlement? Settlements in 6 months time.
I'm in Victoria
Thanks

 

Unless release of deposit was agreed to in contract, it remains in agents trust acct till settlement. For 6 months arrange for the deposit to be invested

 

No forwarding the deposit is not normal practice.

The total amount minus fees - agent fees, mortgage discharge etc is forwarded at settlement from conveyancor.

Agents forward the deposit to the conveyancor - at least that's what we do.

 

In Vic, once the sale is otherwise unconditional (eg finance, building and pest all achieved and satisfactory to the purchaser), you can, through your conveyancer, request that a Section 27 be issued to the purchaser, which is a formal request for early deposit release. However the purchaser can object, and to be honest will object, if settlement is 6 months. A lot can change with your financial position in 6 months that could compromise your ability to release title with your lender, so the purchaser won't be wanting you to run off with money unless they have the property title.

If you are somehow successful with early deposit release, you would not get all the deposit. For instance, the agent would hang onto money owed to them by you for commission, advertising etc.

Your conveyancer will be able to comment further on whether the terms of your particular sale are eligible for issue of a Section 27.

 

I agreed to release the deposit for my IP purchase (Victoria).

The vendor was elderly and needed it for a unit purchase. This was a three month settlement.

 

Non-Victorian folks: early release of the deposit is very common in Victoria, via a request under section 27 of the Sale of Land Act. The standard general conditions of the Victorian contract for the sale of land permit deposits to be released early (unlike other States like NSW).

As Jacqui mentioned, once the contract is unconditional, and if there is less than 80% finance (relative to the sale price) owed on the property, it is common practice for the deposit to be released to the vendor - after a section 27 notice has been served on the purchaser by the vendor's solicitor/conveyancer and 28 days have elapsed (unless the purchaser signs the release form earlier). The agent then deducts their fees and charges, forwarding the balance to the vendor.

I always recommend to my purchaser clients to place a purchaser's caveat on the title if they are releasing the deposit: this significantly reduces any risk of settlement not occurring.

 

Well explained @KateAshmor - us foreigners don't release the bond as a matter of course but it shows up the differences between the states.