Section 27 Document Guide

Section 27 Document Guide

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Section 27: Request for Consent to Early Release of Deposit Money

If you are selling a property in Victoria, and the property has a mortgage on it, then you will need to complete a Section 27 statement. This document is used by the Seller to request the Buyer's consent to the early release of the deposit money. It is important to note that the Seller cannot release the deposit money without the Buyer's consent. In this blog post, we will discuss the details of Section 27, including what information needs to be included in the statement.

The first step is to contact your conveyancer or solicitor. They will be able to prepare the necessary paperwork for you. Once you have the completed paperwork, you will need to send it to the Buyer along with a copy of the contract of sale. The Buyer then has 14 days to respond to your request. If they do not respond within this time frame, then you are able to release the deposit money without their consent.

What if the Buyer objects the Section 27 statement?

Object to the request: After the Buyer responds to the request, the funds are disbursed after 28 days if there are no objections. This implies that if the Buyer does not comment within 28 days, it will be assumed to have given consent for the deposit to be released early to the seller.

If the Buyer does object to the request, then they must provide a reason for why they are doing so. The most common reasons for objection are typically that: (i) the work is not yet completed; (ii) the work is not up to standard; or (iii) there are outstanding monies owed by the Seller. If the Buyer does object, then the deposit will not be released until the matter is resolved.

If you're in the process of selling your home, it's important to be aware of this new rule change and how it may affect you.

Consent to the request: Once written confirmation of consent is received from the Buyer, the deposit holder may release the deposit to the Seller.
If the deposit holder does not release the deposit after receiving written confirmation of consent from the Buyer, the Seller can file a complaint with the Real Estate Commission.

Section 27 is a relatively straightforward process, but it is important to make sure that you follow the steps correctly. If you have any questions, be sure to speak to your conveyancer or solicitor. They will be able to advise you on the best course of action for your particular situation. Conveyancing Victoria, Section 27, request for consent to early release of deposit money, contract of sale, mediation, arbitration.

What does the phrase "Section 27" imply (early release of deposit authority)?

The name of the Section 27 notification is derived from Section 27 of the Sale of Land Act 1962, which covers what circumstances a seller may ask for buyer consent to early return of their deposit money.

Our conveyancing services in Victoria can take the hassle out of buying or selling a property. We will work with you to ensure that all the paperwork is in order and that you understand every step of the process. We want to make sure that your conveyancing experience is as smooth and stress-free as possible.

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