In Victoria, the seller of property can request access to the deposit monies paid by the purchaser prior to settlement.
To gain access to the deposit before settlement the seller must provide the purchaser with information required under section 27 of the Sale of Land Act 1962; which discloses details of any mortgage or caveat affecting the property.
Important to note that the Section 27 Statement / Early Deposit Release is only possible should all the following requirements be met:
1. The contract is not subject to any condition that benefit the purchaser; for example finance or building inspection.
2. The purchaser has accepted the title or is deemed to have accepted the title to the property.
3. The seller has provided the purchaser with a written evidence from their lender confirming details of any mortgage and or caveat (if applicable).
4. The purchaser is satisfied with the Section 27 statement and the details provided.
5. The purchaser has provided written notice to the seller consenting to the early release of the deposit.
If the above points 1, 2 and 3 are met and the Purchaser has not confirmed their written approval, or objected to the Section 27 Statement then the purchaser is deemed to have accepted the early release of the deposit after 28 days from receipt of a Section 27 Statement.
Section 27 Statements can unfortunately be complex area of law with big ramifications if an error occurs, as such all sellers and purchasers should seek specific advice in relation a Section 27 Statement.
Our experienced team at Bond Property Lawyers, a property specific law firm, is here to help, so don’t hesitate to reach out to us on 1300 039 559 or email hello@bondc.com.au
We are here to help.