A ‘Section 27’ is actually called an Early Release of Deposit Authority. It is commonly referred to as a Section 27 as it is implemented under Section 27 of the Sale of Land Act.
Generally, when purchasing real property the purchaser will be required to pay a deposit of around 10% of the sale price. This deposit is usually held in a trust fund until Settlement, at which time it is transferred to the vendor.
If the vendor wants the deposit money prior to Settlement, they may ask for an Early Release of Deposit Authority.
Please note the Section 27 Release of Deposit can only be arranged:
- When the Purchaser returns the signed Section 27 to our office; or
- After the 28 day objection period has lapsed.
AND
- The Contract is unconditional; and
- The loan repayment does not exceed 80% of the Contract Price; and
- Confirmation that the loan is not in default.
If this occurs, the estate agent holding the deposit is given permission to release the deposit to the vendor.
There is never any guarantee that a deposit will be released early, and it is strongly advised that the vendor does not rely on this occurring.
If you wish to make application to have early release of your deposit funds, please print out the applicable form, complete all sections required and scan, mail, or deliver the document to our office:
- Section 27 Early Deposit Release Statement where there is a mortgage registered on the title
- Section 27 Early Deposit Release Statement where there is no mortgage registered on the title
We are here to help!
If you have any questions, queries or wish to have a chat in regards to anything regarding conveyancing, please don’t hesitate to contact a specialist in our Client Liaison Team on 03 5223 2222 or by email to reception@regionalconveyancing.com.