Hi, I’m Allan Dowdell from the Max Brown Real Estate Group, and welcome to this week’s Edge Update. The topic to discuss this week is a section 27, and what is a section 27, and how do we go about getting an early release of the deposit?
What is a Section 27/Early release of deposit authority?
In short, the section 27 allows the vendor early access to the deposit funds. This might be of assistance to them if they’re looking to purchase and pay a deposit on their new property. What this means is the vendor and purchaser need to agree on this for the section 27 to be released by signing paperwork from their conveyancer or solicitor.
What is the process involved?
It’s important to take note that while the section 27 are common, they’re not always guaranteed to be released. There are three outcomes with a section 27. One, the purchaser agrees, and the funds are released to the vendor. Two, the purchaser rejects the section 27 with a valid reason in writing by the conveyancer or solicitor. Or stage three, there is no response in which after 28 days, the funds can be released to the vendor.
Is a Section 27 a good idea?
Whilst a section 27 release mainly benefits the vendor it is often a great option for all parties. We recommend speaking with your solicitor or conveyancer further when the time comes regarding your section 27.
On behalf of the Max Brown Real Estate Group, thank you for watching another Edge Update.