Section Statement - Frequently Asked Questions - Merton. What is early release of Deposit Authority? How long does it take to receipt section 27? It authorises the vendor of residential real estate to have their deposit released before settlement. When purchasing real estate, a purchaser must pay a deposit (usually of the sale price) to secure the sale.
Once pai the deposit is usually held in trust by the real estate agent, a lawyer, or a conveyancer.
If the purchaser goes back on the deal after signing the contract, the vendor may be entitled to keep the entire deposit. At the time of settlement, the purchaser pays out the balance of the sale in return for the property title, and the deposit is also released to the vendor (minus any real estate commissions). In Victoria, a Secti. See full list on conveyancing.
For a purchaser to agree that it is safe for the vendor to have early access to a deposit , they need to have sufficient evidence that the other party has disclosed details of any mortgage or caveat affecting the property. Most banks in Victoria take 1-weeks after receiving a discharge request to complete the required letter, and some banks will not be forthcoming with it at all, so vendors should keep in mind that early release of a deposit can never be guaranteed.