LawAnswers.com.au - Australia's #1 Legal Community

LawAnswers.com.au is a community of 10,000+ Australians, just like you, helping each other.
Ask a question, respond to a question and better understand the law today!
Join us, it only takes a minute:

VIC Property Law - Deposit Bonds - Acceptance of Terms Less than Registration Date?

Discussion in 'Property Law Forum' started by niraj singh, 21 March 2016.

Tags:
  1. niraj singh

    niraj singh Member

    Joined:
    21 March 2016
    Messages:
    1
    Likes Received:
    0
    Hi ,

    In Victoria, Deposit Bonds aren't as widely known or understood as NSW or QLD, whilst almost 11% of the weekly property sales involves a guarantee being used.

    My question has to do with off-plan sales. Registration dates are set for 4 to 5 years from when a development is sold to the public. However there are instances where the developments are almost finished or perhaps 1 -2 years away ( estimated) instead of 48 months.

    Question - If Vendor /Solicitor agrees to and accepts a deposit guarantee that doesn't match the registration date for various reasons such as the above, can the purchaser be deemed in default because the Deposit Guarantee term doesn't match the requisite term, eg. 24-month guarantee issued when registration date is 48 months?

    Deposit Guarantee providers have been subject to the ire of purchasers, who insist on shorter terms because the developer promised completion in 12 months, 24 months etc. Also as the longer the term of guarantee, the more costly the guarantee. The motto of Deposit guarantee provider is that registration date trumps other requests and potential claim.

    Any help under Property Law is welcome, in order to tailor something more suitable for the consumer, but ensure the vendor is protected

    Regards
     

Share This Page

Loading...