Releasing deposit to vendor during settlement

[Hodge]

Hi Everyone,

just noticed on the last page of the contract of sale their is a document that states the purchaser must release the deposit to the vendor during settlement at the vendors request as long as their is no mortgage on the property. Underneath this their is a statement that states their is no mortgage on the property.


The property Is a deceased estate. What is the benefits to the vendor of early access to the deposit? I have signed off a couple times on other properties to allow the vendor access to the deposit and everything has worked out well.

Is this common practice and anything to watch out for? By the time the agent takes his commission there isn't much left of the deposit.

 

[Terry_w]

Hi Everyone,

just noticed on the last page of the contract of sale their is a document that states the purchaser must release the deposit to the vendor during settlement at the vendors request as long as their is no mortgage on the property. Underneath this their is a statement that states their is no mortgage on the property.


The property Is a deceased estate. What is the benefits to the vendor of early access to the deposit? I have signed off a couple times on other properties to allow the vendor access to the deposit and everything has worked out well.

Is this common practice and anything to watch out for? By the time the agent takes his commission there isn't much left of the deposit.

They may want to get access for a deposit on the next one.

But beware - this is a deceased estate so has probate or administration been granted? Are you dealing with someone with legal authority to enter into the contract? If they were to skip off with it you may have no recourse against the property.

Go and see a lawyer - conveyancers would be way out of their depth on this one.

 

[Hodge]

Hi Terry,

Yes probate has been granted. The agent did inform me a couple weeks ago that the family is fighting and all 4 siblings have their own lawyers.

Say they do skip off with the deposit what they do with the money shouldn't effect me? I guess as long as their is proof the deposit is paid it would be between their family to worry about.

Does this sound right?

 

[Terry_w]

Hi Terry,

Yes probate has been granted. The agent did inform me a couple weeks ago that the family is fighting and all 4 siblings have their own lawyers.

Say they do skip off with the deposit what they do with the money shouldn't effect me? I guess as long as their is proof the deposit is paid it would be between their family to worry about.

Does this sound right?

Not necessarily. Best to speak to your lawyer.