Do I need to sign the Section 27 statement?

[wixy]

I'm approaching settlement on a property I've purchased. Early on I was sent a Section 27 statement (to release the deposit) but I did not sign, as I wanted the deposit money release at settlement not beforehand.

Just wondering though - do I still need to sign this statement before settlement, or will the deposit money be released automatically?

 

[Aaron_C]

It is released automatically if the property has no mortgage on it.

 

[wixy]

Thanks. In this case the vendor does have a mortgage, so do I need to sign? With 3 days until settlement I would have thought my solicitor would be asking for it.

 

[Peter_Tersteeg]

If the contract is unconditional, there's no reason not to release it. It's no longer your money, you're not going to get it back if the sale doesn't proceed and it's not going to earn you interest in the agents trust account.

On the other hand the it may make the vendor easier to work with, or they may have reasons which will mean the money benefits them sooner. It also allows the agent to get paid sooner. Overall it keeps everyone happy.

If it's not released prior to settlement, it will be released at settlement even without your consent.

 

[wixy]

If it's not released prior to settlement, it will be released at settlement even without your consent.

Thanks, that's what I was hoping. Didn't want it to get to settlement day and have the solicitor then ask "where's the Section 27?"?

 

[CapnBloodbeard]

Why didn't you want it released beforehand?