Release of deposit monies

Discussion in 'Legal Issues' started by july, 6th Nov, 2002.

  1. july

    july Member

    Joined:
    2nd Oct, 2002
    Messages:
    69
    Location:
    Melbourne, Victoria
    Hi
    I received a section 27 today requesting me to release the deposit to the vendors of the property I have purchased.
    Due to damage to the property that has yet to be fixed I refused to sign, my conveyancer however tells me that the deposit will be released to the vendor after 28 days regardless of whether I sign or not. Does anyone know if this is standard?
    Thanks
     
  2. dionysus888

    dionysus888 Member

    Joined:
    28th Sep, 2002
    Messages:
    54
    Do some checking but I think it is released if you agree or do nothing but if you have a problem put it in writing that you refuse to release the deposit until the issue is resolved to your satisfaction. Somebody else may be able to help you with more info.
     
  3. asy

    asy Member

    Joined:
    18th Jun, 2001
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    Location:
    Sunny BRISBANE :)
    Hi July,

    Yes, this is pretty standard (the request for a Section 27). Here is the relevant legislation:

    The sections you are most interested in are:


    So you have to accept the title, which means that you have to say "Yes, I am ready to settle" (obviously pending banks and timing, but generally you must be happy to settle)

    You CAN write to them (well, your solicitor to theirs...) and say that you are NOT happy with the deposit being released, and maybe say that you will be happy to release the deposit once the repairs are made and you are more satisfied.


    This is what your solicitor was talking about. If you receive a section 27 and DO NOT reply, you will be deemed to have agreed to having the deposit released.

    hope this helps,

    asy :D



    *usual disclaimers apply, I'm not a solicitor, this is not advice, check with your solicitor... blah blah blah.. :)