Until settlement, the deposit is held by the agent in a trust account. The operation of trust accounts by agents is controlled by the Real Estate and Business Agents Act. Money paid into trust accounts held by licensed agents is covered by a Fidelity Guarantee Fund which protects against misappropriation of money by an agent or agency employee. Under the General Conditions, the interest belongs to the purchaser. The vendor can give the purchaser 48 hours notice in writing to rectify the problem and can end the contract after that time if the money is not received.
Many new buyers wait until they move in before taking out insurance on the property.
The property is generally at the risk of the vendor until the settlement date. Before taking possession of a property prior to settlement, both the vendor and purchaser should seek legal advice about the problems that could arise from prior possession and consider these risks carefully. Our contact details are in the Contact us section. If you are uncertain about the terms and conditions of the Offer and Acceptance, you should seek the advice of a solicitor. This information is intended as a guide only.