A Release of Deposit Clause is inserted as a special condition in sales contracts, allowing the vendor access to the deposit paid by the purchaser after exchange, but prior to settlement.

This benefits the vendor as they have access to the deposit money which may be put towards them purchasing a property. However there is a risk for the buyer if the deal ‘falls over’ and settlement does not take place. In this instance, the buyer would sue the vendor to recover the deposit back (if they are unable to return the funds).

To learn more and keep up to date with the latest property trends contact Michael, Principal Buyer’s Agent at Real Property Buyers.

Email: [email protected]
Michael – 0402 897 083