Section 27

Hi Guys,

Quick question regarding a potential situation.

Looking at making an offer on a property with around a 120 day settlement. The vendors has mentioned to the agent this would work but would want the deposit early so they can look at buying a property. I think this is reasonable enough and i have the funds to release the deposit early.

My question is, is a section 27 easy and straight forward? Is there any risks involved with this type of arrangement?

Any advice would be good.
Thanks

 

The risk of giving the deposit away before you own the property? What happens if it doesn't settle?

 

Hi Terry, thanks for the response. This is my first purchase so i'm trying to get my head around it all.
Is not settling common? I have my finance all pre approved.
Sorry to the basic questions

 

most would probably settle. But what would happen if the vendor dies, goes insane, becomes bankrupt, refuses to settle?

 

What type of risk do you see it by letting the deposit early?

 

not being able to get it back!

 

Thanks Terry, i understand that.
I think i worded my question wrong. Would you see it as high risk, low risk etc? Likely,unlikely? Has this happened much in your experience?

 

This is something you should be asking your lawyer as it is legal advice.

 

No Problems, will do.
Thanks for the advice.