by Peter Mericka B.A., LL.B Real Estate Lawyer and Qualified Practising Conveyancer Victoria Lawyers Real Estate
Enzo Raimondo, CEO of the Real Estate Institute of Victoria (R.E.I.V.) regularly provides consumers with his understanding of the law affecting the sale of real estate. Unfortunately, Enzo’s explanation of these laws is often quite limited, and his offering in the Domain section of The Age Saturday 28 April 2007, is a case in point. In his article Enzo suggests that a person who sells one property can use the deposit paid by the purchaser of that property to pay the deposit on the purchase of another by arranging for early deposit release. Enzo presents this as something of a helpful hint for vendors, but doesn’t go into detail.
As a practitioner in property law, I find Enzo’s article both mischievous and misleading.
As Enzo acknowledges in his article,
“…if an early release is agreed to, the selling agent may deduct commission and expenses from the deposit when the release occurs.”This is a very important point, because in my experience estate agents will always put their own interests ahead of those of the vendor when the deposit is needed for the purchase of another property.