Section 27 - Early Deposit Release - Vendor wants us to sign.

[Ca Plane Pour Moi]

This may sound daft, but in other places the banks can see that you're getting $X for your house, you're buying a house at $Y and you have a mortgage of $Z.

So you need a new mortgage of $Y-X+Z.

You don't take out your home loan until you have your new house, so that would be when you have sold your house... so you don't need to draw those funds earlier. It sounds like a huge con to me. By the banks, that is.

[Arimeh]

As a conveyancer I would advise any client not to sign it. Protect your interests and all that.

Jmo obviously.

[Teeki]

As a conveyancer I would advise any client not to sign it. Protect your interests and all that.

Jmo obviously.

As a banker I would advise the same. If they need a deposit for a new house there are other ways.

[Astrid]

Been on both sides. First home we were hassled to release it and when we sold, we also wanted it released. Maybe it was due to our location, but apparently it was pretty normal procedure.

[Miss.September]

The agent could be hassling you because they have told the vendor that they can have the early deposit. We were told that by our agent when we sold but once the deposit was paid, then it was a different story and nothing was handed over until settlement. I understand that people often need that money to pay off debts etc, but if I was the purchaser, I'd be wary. If you're in the position to, I'd bring forward settlement instead.

[Chocaholic]

Definitely bring forward the settlement. I won't release funds until they are out of the house at least.

There is no benefit to you and you risk losing your deposit or having a very hard time getting it back.

It is not worth the hassle in my opinion.