Delay in Receiving Deposit after Settlement

Lchickennugz1001 on 16/11/2023 - 19:21
Last edited 16/11/2023 - 19:55

Hi everyone,

Settlement day took place a week ago. I am the seller, I've received the settlement amount but still haven't received the 10% deposit as part of it.

The settlement statement does include the deposit. I asked my conveyancer to please update me on the timeline for the deposit return. My conveyancer advised me to contact the real estate agent directly.

Only documents in my possession are the Sales Contract and Purchase Settlement Statement from conveyancer. Nothing from Real Estate Agent.

I'm curious about your experiences – how soon after settlement did you receive your deposit?

Also, should the conveyancer be responsible for chasing this, or is it more appropriate for me to reach out to the real estate agent myself?

Any insights would be greatly appreciated. Thanks!

Financial

Comments

  • 87percent on 16/11/2023 - 19:25
    +19

    I would tell the conveyancer to do their job

    • WreckTangle on 16/11/2023 - 21:52
      +11

      87percent is 100% correct

  • Nugs on 16/11/2023 - 19:26
    +3

    wasn't it deducted from the 'outstanding' balance?
    assuming you are the purchaser
    .

    • HardQuiz on 16/11/2023 - 19:33
      +3

      OP is the vendor.

    • HeWhoKnows on 17/11/2023 - 15:40

      OP is the seller.

      • Nugs on 17/11/2023 - 19:06

        Twas edited
        .

  • Almost Banned on 16/11/2023 - 19:30
    +3

    I don't understand.
    Your settlement statement should have included the deposit and it should have formed part of the payment for the property and been released at settlement…

  • Porker on 16/11/2023 - 19:46
    +6

    Doesn't sound right.

    Deposit would be transferred earlier (with agreement) or at the time of settlement as part of the monies transfer.

    Give the real estate agent a call. Yes it should be the conveyancer to notify the agent, but just jump straight to the source.

  • AndyC1 on 16/11/2023 - 19:51
    +2

    What did the REA say when you called them?
    Have you got a final bill/account from the REA with their costs?

  • PissLUR on 16/11/2023 - 19:56
    +3

    Conveyor not doing their job. The agent should have transferred the deposit minus their commission to the conveyor's account.

    • gyrex on 17/11/2023 - 07:57

      Someone's going to be doing a lot of walking…

    • HeWhoKnows on 17/11/2023 - 15:42

      Depends on the State.
      Many are using PEXA now,

  • l005e on 16/11/2023 - 19:58

    Use a good lawyer/conveyancer. You get what you pay for. Couple of hundred dollars more is so worth it

  • vince088 on 16/11/2023 - 20:12
    +2

    Deposit(10%) goes to the REA and remaining(90%) goes to conveyancer.
    On settlement day REA transfers you 10% minus his fees, conveyance transfer the other 90% usually through PEXA.

    • WreckTangle on 16/11/2023 - 21:55

      10% should have been paid out at deposit stage

      • jjjaar on 16/11/2023 - 23:09
        +1

        Depends on where you are in Aus, but in Vic it also depends on how long settlement is and if the vendor requests early release of deposit.

        Has to be after 28 days of signed contract, so it’s typically useless for 30 day settlements.

    • HeWhoKnows on 17/11/2023 - 15:43

      You have contradicted yourself.
      The settlement payment goes straight to PEXA
      Not the conveyancer

  • Pcosmic on 16/11/2023 - 21:14
    +4

    It's gone~

  • jjjaar on 16/11/2023 - 22:07
    +1

    Sometimes the deposit is left out of settlement and the REA sends it directly once settlement is complete.

    Did you provide the REA with your bank details for where they should deposit it? Definitely give them a call.

    I received confirmation it had been sent about 3 business hours after settlement was complete (settlement was finalised at 3pm and I received the confirmation at 10am next day) and then received the funds another 24 hours after that.

    • Typical16-bitEnjoyer on 16/11/2023 - 22:30
      -3

      Please name and shame your conveyancer.

      • jjjaar on 16/11/2023 - 23:05
        +1

        I don’t have to, they were excellent. The REA had it under control. The conveyancer knew that. There was no need for the REA to release it from their trust account to the conveyancer when it could go directly to me.

        This is not uncommon, at least in Vic. Absolutely OPs timeline is concerning, but the general process of the REA holding the deposit is as normal as them transferring it to the conveyancer.

        The agent will hold the deposit in their trust account until the settlement date, or transfer it to a conveyancer’s or legal practitioner’s trust account.

        https://www.consumer.vic.gov.au/housing/buying-and-selling-p…

        • Typical16-bitEnjoyer on 16/11/2023 - 23:08
          -1

          until the settlement date

          How the hell do you settle without the deposit. Crazy.

          This is VERY uncommon. in VIC especially.

          There was no need for the REA to release it from their trust account to the conveyancer when it could go directly to me.

          Every reason. Take their commish. Send off the rest, wipe their hands clean. Why would they have a need to hold onto the funds?

          • jjjaar on 16/11/2023 - 23:11

            @Typical16-bitEnjoyer:

            How the hell do you settle without the deposit. Crazy.

            They initiated the process in advance of settlement, demonstrated this to all involved parties, and once they had received confirmation settlement was complete, finalised the transfer.

            Every reason. Take their commish. Send off the rest, wipe their hands clean. Why would they have a need to hold onto the funds?

            They got their commission. I got my money. They didn’t need to wipe their hands clean any earlier. I don’t know what else you want to hear.

            • Typical16-bitEnjoyer on 16/11/2023 - 23:30
              -1

              @jjjaar: You took a massive risk. You got lucky. OP might not be so lucky.

              The entire point of settlement is to ensure clear title passes with all funds accounted for. Not after.

              Sack your conveyancer.

              • jjjaar on 16/11/2023 - 23:45
                +1

                @Typical16-bitEnjoyer: Lol yes massive risk to do a common thing - see below.

                Big difference between me and OP in that me and my conveyancer had documentation from the REA of the deposit release process and were kept updated on this throughout. So no, no risk on my end.

                The real estate agency which holds your deposit will only release it to the seller on the day of settlement, after they have received confirmation from both the vendor’s and your conveyancer that settlement has taken place.

                https://thorpeconveyancing.com.au/buying-a-home-who-gets-the…

                The agent who is holding the deposit then receives a confirmation from both parties that the contract is settled; only then when the deposit is released to the seller.

                https://jbsolicitors.com.au/real-estate-deposit-rules/

                As the seller you will normally receive two separate payments after settlement has occurred:
                •The payment of settlement funds transferred from the electronic settlement or deposited by bank cheque; and
                •The balance of deposit funds transferred by the agent.
                This means that generally you will not have access to the deposit until after settlement.

                https://www.lawlab.com.au/blog/conveyancing-settlement-faqs

                • Typical16-bitEnjoyer on 17/11/2023 - 08:23
                  -3

                  @jjjaar: Cool, you can Google. Nice. It's clear you've never heard of PEXA or participated in an actual settlement tho. I have.

                  You're wrong and misinterpreting some of the very points you've copied and pasted.

                  • jjjaar on 17/11/2023 - 15:41
                    +1

                    @Typical16-bitEnjoyer: Aw, even with everyone else in the comments reiterating my points, you’re gonna keep believing you’re right? Cute.

  • Typical16-bitEnjoyer on 16/11/2023 - 22:12
    +1

    Holy F, get a lawyer. Tomorrow.

  • JimmyF on 16/11/2023 - 22:19
    +3

    My conveyancer advised me to contact the real estate agent directly.

    and did you?

    The REA will deduct all the costs they are owed out of the deposit before passing it on to you. So don't count on that 10% just yet!

    • Malik Nasser on 17/11/2023 - 09:05

      This.
      I contacted my REA a day after settlement to enquire about the deposit payment. Received the deposit payment (less fees) a day later.
      I don't know why people find it so hard to communicate with others. Take control of your life and do what you have to do. Don't rely on others to do something that is easy enough for you to do (with very little effort).
      You did pay the REA, so they are working for you.

      • JimmyF on 17/11/2023 - 09:57

        I don't know why people find it so hard to communicate with others

        Crazy isn't it. Rather than call the REA and ask when it will be released or email them at least, they are posting online for someone to help. No one here can get the money released for them!

        It's even more crazier when they have asked the conveyancer and they told them to call the REA as well! But ignored that advice too.

  • MadgeH on 16/11/2023 - 22:59
    +3

    Conveyancer is correct. Agent holds this money in their sales trust account

    • Typical16-bitEnjoyer on 16/11/2023 - 23:06
      -1

      What conveyancer signs off on settlement without receipting that money? Let us know so all of OzB can stay clear.

      • MadgeH on 17/11/2023 - 04:26
        +2

        Every conveyancer. This is standard practise. Agent will send funds from trust post settlement.

        • Typical16-bitEnjoyer on 17/11/2023 - 08:25
          -1

          Never seen this occur in any PEXA settlement I've ever seen.

          Plus 9/10 Agents I've seen want their commish asap, so they pay themselves from trust and transfer the remainder to the conveyancer as soon as possible.

          Guessing peeps are using conveyancers or law firms who don't have trust accounts.

  • djkelly69 on 16/11/2023 - 23:53
    +2

    Real estate agents can't access PEXA, which is where the financial and legal settlement would have taken place.

    It is standard in NSW that if the deposit is held in the seller's agent's trust account, that the funds remain there until the settlement takes place, and then the agent distributes the funds (mostly to themselves to pay commission, advertising, etc, with the balance to the vendor).

    OP, I can't work out why you haven't called your agent yet? Even if the conveyancer called them for you, it is not likely the conveyancer knows the bank account you want the deposit funds to be paid into, so you would need to be in contact anyway.

  • Central Intelligence on 17/11/2023 - 12:50

    Assuming there is 10% of the sale price which held by the real estate agent.

    It could be one of two things:
    1. Order on agent was not sent by the purchaser's solicitor/conveyancer to the your real estate agent to authorise the release of funds.
    2. Real estate agent is holding onto your funds even though they received the authorisation to release the funds… This usually happens if you did not provide your bank details in advance or further instructions.

    First contact your real estate agent to determine if they have received the order on agent. If that hasn't happened, then get your conveyancer to hound the purchaser's solicitor/conveyancer.

  • Essem on 17/11/2023 - 21:30

    Deposit is paid to Vendors agent. Agent holds their commission/expenses and balance is transferred to Vendors solicitor/conveyancer. Vendors solicitor/conveyancer transfers (retaining own fees) into PEXA as part settlement funds due to Vendor.. If deposit doesn’t cover agents commission/expenses then agent retains deposit and receives balance from Vendors solicitor/conveyancer at settlement via PEXA. It is part of the sale price. The Vendor does not get it in addition to the sale price. The deposit doesn’t even show on the Vendors Settlement Statement. Vendor gets all settlement funds due at settlement. No fart arsing around chasing agent for anything. Vendors solicitor/conveyancer notifies agent settlement complete and agent can release balance held for their commission/expenses. That’s how it’s done in South Australia.

  • miwahni on 18/11/2023 - 00:29

    Prior to PEXA it was common in Qld for agent not to release deposit until asked. Not standard practice but happened often enough. If it wasn't required for settlement of another purchase in a chain then it wasn't always be released at settlement of sale. Could still be the case? I would definitely be contacting your agent to enquire.

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