more sagas with the deposit and my solicitor..
he is trying to coerce me in releasing the deposit, all $44,000 of it because he believes its the vendor's money.. i tried to explain to him that is not the norm, that the deposit sits in an interest gaining fund until settlement.. he believes i am wrong because the vendor's solicitor is telling him that!
my solicitor keeps saying, "but its in the contract", but i told him that the contract is meant to be unconditional (thats if he has done what i have asked him to do from the start)..
the contract i signed just stated when the deposit was meant to be paid to secure the house.. it never stated that it had to be released 120 days prior to settlement! even the real estate agent told me that the deposit typically remains in trust..can the vendor and their solicitor force me to release the deposit early?
ps. i've found a new solicitor but my current one won't hand over the paper work unless i pay him $1000! he has done nothing but cost me money and i can't fathom handing over another cent..
our solicitor just sacked me!! he said that i was dodgy and unethical for not wanting to release the $44,000 deposit 120 days early.. he can't work for me
but the question still stands – can the vendor force me to hand over the deposit long before settlement?
HI there Brookelea
you may wish to review the above thread which recently discussed this issue concerning the release of a depositBy the way did you enter into a cost agreement with your previous solicitor? – it may be possible to dispute the amount of $1000 being claimed – which incidentally seems a lot to be charging in the circumstances
thanksI think it depends on what is in the contract you signed. If you didn't agree to it, they cannot enforce it. If it is handwritten in the contract, unless you signed or initialled it, you can argue it was added later.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I don't know what State you're in, but in Vic the standard procedure is the Vendor's solicitor asks the buyer (usually through their solicitor) if they would allow the deposit to be released early.
The early release of deposits is never part of the Contract of Sale, but can be requested separately after the deposit has been deposited and the contract is unconditional.
If the buyer agrees (and they are not obliged to), the release is done through a Section 17 (I think it is – from memory), and the cheque is drawn from the agent's or solicitor's trust fund – whoever is holding the deposit cheque.
The fact that the SOLICITOR is trying to force you to release the deposit seems very odd to me. Usually it is the agent trying to get to the funds to get their commission before settlement, or it may be by the seller who needs the cash to use on another project.
i'm in victoria and it was not part of the contract..
i just found out from my former incompetent solicitor that he has been sitting on section 27 and the titles for over 28 days..
i was never informed about this.. he also just rang me and told me that i had to release the deposit by tomorrow the latest..
he never informed me that he had received section 27..
seems that i may have not one leg to stand on..thanks for all your advice
i'm in victoria and it was not part of the contract..
i just found out from my former incompetent solicitor that he has been sitting on section 27 and the titles for over 28 days..
i was never informed about this.. he also just rang me and told me that i had to release the deposit by tomorrow the latest..
he never informed me that he had received section 27..
seems that i may have not one leg to stand on..thanks for all your advice
Hi again Brookelea
Can I suggest you speak with your new solicitor urgently
A Solicitor has to act on instructions – he can't tell you what to do –
if he is not following instructions – his conduct may be considered unprofessional conduct which can give rise to a claim for damages.If you want any help with respect to legal costs – perhaps you may like to contact me.
I note that I am both a solicitor in QLD and legal costs consultant in QLD and NSW and could probably refer you to a consultant in Victoria.
thanks
Robyn Davis
Legal Costs Consultant
DG Thompson & Co (with offices in QLD, NSW and ACT)raddles, i spoke with my new solicitor today.. they (the two of them) found 4 faults with the contract and have placed an objection to the release of the deposit..
the world is so much nicer when you are surrounded by competent ppl!!
btw, i refused to pay the first solicitor because of the myriad of mistakes he made – he agreed to no payment..
thanks so much..
Hey, make sure you DEMAND the interest that your solicitor would have acrued from the deposit he was holding in HIS trust account. Might not be much, but it sounds like doesnt deserve a damned cent from you. Can you tell us who it is so we can all avoid him like the plague? ( are names allowed to be named on the forum???)
Hi there Misty
a solicitor's trust account doesn't normally accrue interest – and any interest is usually directed to an account held by the Law Society or Institute and used to pay members of the general public who have been wronged in some way by a solicitor.It is one of the reasons people will often have a deposit in a separate interest bearing account – so the relevant parties to the transaction do benefit from the interest. Also another reason for having a deposit bond.
Brookelea – it was good to see you resolved those issues you had and here's hoping the rest of the transaction goes smoothly for you.
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