When selling a property you are entitled to have your deposit released to you prior to settlement under Section 27 of the Sale of Land Act (VIC). It involves the preparation of a Section 27 Statement. This Statement provides the purchaser with details of any mortgage over the property and of any caveats lodged against the property. If there is a mortgage we are required to obtain written details of the amount due under the mortgage from your bank and attach this to the statement. This information can be requested when completing your discharge of mortgage.
The completed section 27 statement is provided to the purchaser’s representative. The purchaser may sign or object to the statement. If the purchaser does not sign or object within 28 days of their representative receiving the document, the deposit may be released to you without their approval. A purchaser may object to the statement if the information contained in the statement is incorrect or if the purchase price is not sufficient to discharge the mortgage.
It is worth keeping in mind that when deposit is released to you your real estate agent is able to take their commission and advertising costs from the deposit. If you would like more information, we are always here to help. Please get in touch with our team.
Katherine Taylor – Law Clerk