Vendors can sometimes release a deposit early

Vendors can sometimes release a deposit early
Enzo RaimondoDecember 8, 2020

Many people can’t afford to buy a new home until they sell their current one. Selling and buying at the same time has its advantages yet can also be stressful, as you not only need to successfully sell but also locate and successfully purchase. 

From a cashflow perspective it can be difficult, as you need a deposit for the home that you are buying. While some people apply for a deposit bond to bridge the gap, there is also the option of applying for an early release of the deposit from the home you have just sold. 

The law in Victoria, specifically section 27 of the Sale of Land Act, allows the seller to apply for release of the deposit before the settlement date. 

It outlines a number of conditions and a mechanism for the release, including the critical condition: the purchaser must be pleased to release it. 

If you believe that you are able to meet the criteria, you need to issue a notice that contains specific information and asks the buyer of the property to allow the release of the deposit monies. They are held in trust by your estate agent or solicitor. 

While this may sound simple, it can also take some time; in fact, it may be no quicker than waiting on the settlement date of a short settlement period. 

It is important to also note that if early release is agreed to, your agent may deduct his or her fees at this time.

Enzo Raimondo is CEO of the Real Estate Institute of Victoria.

Enzo Raimondo

Enzo Raimondo is CEO of the Real Estate Institute of Victoria.

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