Just sold the property, but have a couple of minor questions.........

I am happy because I have just sold a property throuhg an agent.

Apparently, the purchaser have paid the 10% deposit to the trust account

The deposit made was $85K and the settlement day is in 24 days. My question is.....what happens to the interest earned for the deposit within the 24 days? Who keeps it? The agent? Me? or the buyer? I assume it will be all me? And how is the interest calculated? Based on the market interest rate?
 
The deposit made was $85K and the settlement day is in 24 days. My question is.....what happens to the interest earned for the deposit within the 24 days? Who keeps it? The agent? Me? or the buyer? I assume it will be all me? And how is the interest calculated? Based on the market interest rate?

I think you will find that the trust account is NOT allowed to earn interest - so it's wasted. In Victoria, we always request an early release of deposit for this very reason.

Cheers,

The Y-man
 
My question is.....what happens to the interest earned for the deposit within the 24 days? Who keeps it? The agent? Me? or the buyer? I assume it will be all me? And how is the interest calculated? Based on the market interest rate?

The deposit is held in a Trust Account. There is no interest earned (by a REA) on money held in trust.

Even if it was invested (which it won't be) at say 4% it would only be $220 and that would be shared 50-50 with you and the purchaser.
 
Last edited:
In NSW all real estate trust accounts must be interest bearing, with all interest being paid to a special fund that goes to compensate those who get ripped of by agents that misappropriate trust monies.

In order to receive interest on the deposit your contract of sale needed to have a clause that says the deposit is to be invested - the agent would then need to open an interest bearing account and would also require the vendors & purchasers tax file numbers - the interest earned is normally split 50/50.


The other thing is the bank account needs to be an at call account which atm has an interest rate of about 2-2.5%.
 
Top