Victorian Consolidated Legislation

Sale of Land Act 1962 - SECT 27

Release of deposit moneys in certain circumstances

27. Release of deposit moneys in certain circumstances







(1) Where a legal practitioner, conveyancer or estate agent is holding deposit
moneys as a stakeholder under section 24, the purchaser may by authorization
in writing empower the legal practitioner, conveyancer or estate agent (as the
case may be) to release those deposit moneys to the vendor in his own right or
as the vendor directs.

(2) Subsection (1) shall only operate-

   (a)  where the contract is not subject to any condition enuring for the
        benefit of the purchaser; and

   (b)  where the purchaser has accepted title or may be deemed to have
        accepted title.

(3) An authorization in writing shall not be effective unless and until the
vendor has given the purchaser a notice in writing setting out-

   (a)  if there is a mortgage over the land which is the subject of the
        transaction, the particulars specified in Schedule 1; and



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   (c)  particulars of any caveat lodged under the Transfer of Land Act 1958
        in respect of the land which is the subject of the transaction-

and the purchaser has given notice under subsection (4) that he is satisfied
with those particulars.

(4) Where the purchaser is satisfied-

   (a)  that the particulars provided under paragraphs (a) and (c) of
        subsection (3) are accurate; and

   (b)  that the particulars provided under paragraph (a) of subsection (3)
        indicate that the purchase price is sufficient to discharge all
        mortgages over the property-

he shall give the vendor notice in writing to that effect within 28 days of
receiving the particulars.

(5) A notice in writing under subsection (4) stating that the purchaser is
satisfied with the particulars shall be deemed to be the authorization
required by subsections (1)(2) and (3).

(6) Where the purchaser is not satisfied with the particulars he shall within
28 days of receiving them give notice in writing stating that he is not
satisfied with the particulars and giving the reasons why he is not satisfied.

(7) Where the purchaser fails to give a notice under either subsection (4) or
(6) within the time limited by the subsection he shall-

   (a)  be deemed to be satisfied with the particulars provided; and

   (b)  be deemed to have given the authorization required by subsection (1).

(8) Where a vendor knowingly or recklessly supplies false information to the
purchaser regarding any particulars required to be given under subsection (3)-

   (a)  he shall be guilty of an offence against this Act and liable to a
        penalty of not more than 50 penalty units; and

   (b)  the purchaser shall be entitled to rescind the contract for the sale
        of the land and recover the deposit moneys.

(9) Where an estate agent is empowered to pay deposit moneys to the vendor
pursuant to subsection (1) the estate agent may retain out of the deposit
moneys an amount equal to the commission and any auction expenses that he is
or will become entitled to and any other moneys that he is or will become
entitled to by law in relation to the transaction.

(10) Notwithstanding section 2(1) of this Act, for the purposes of this
section mortgage means a charge or lien on land for securing money or money's
worth.

(11) This section shall not operate to authorize the release of deposit moneys
which are being held by a legal practitioner, conveyancer or estate agent
under section 9AA.