It is not uncommon for the vendor to request early access to the deposit. This will often require some negotiation and cooperation however; the following five conditions should be met:
1) There is no specific condition for the benefit of the purchaser
This might be a building inspection or ‘subject to finance’ condition. As most standard contracts contain terms such as these that are drafted to protect the purchaser, the parties will often compromise to reach an agreement.
2) The purchaser has accepted the title or deemed to have done so
If the purchaser has not objected to the validity of the title within a reasonable period of time, then they are considered to have accepted the title.
3) The seller has given the purchaser notice in writing
If the property is subject to a mortgage or caveat, then the vendor will need to obtain all relevant information from the lender and complete what is referred to as a ‘deposit release statement’ (also referred to as a section 27). This can be included in the contract documents, however, it is important that the purchaser acknowledges the deposit release statement as they will have a limited period of time to respond or object the request.
4) The purchaser is satisfied
This simply means that the purchaser has reviewed the information provided in the statement and is satisfied that the seller is capable of discharging all money owing on the property.
5) The purchaser advises the vendor in writing within 28 days
A signed notice is required by the purchaser within 28 days which will alert the vendor of their response. If a response is not provided within this period of time, the purchaser is deemed to have accepted and the deposit will be released.
Buying or selling a property? We can help. We’ve acted on hundreds of property conveyances across Melbourne and pride ourselves on efficient, hassle-free, professional outcomes with clear, easy communication.
Call us today on 9534 3002