Reference no: EM133352886
Scenario:
Janet and Ben Green are new clients of NBI Conveyancing and are consulting the team about the apartment they recently purchased for 900,000 dollars. This apartment is an energy efficient gem located in the heart of the city. The apartment has solar power for heating and does not have any air conditioning.
The residents in the block of units rely on an external tank for water. The complex does not have any parking facilities, but there is a lockable bike storage for residents to use.
It has a great community garden with planted herbs and vegetables for complex residents to use and enjoy.
The Owners Corporation fees are around $500 a quarter and are priced reasonably below the average market rate for a complex of that size. The council rates are $2000 per annum.
The vendor in this scenario is Eco Buildings of Australia Pty Ltd and they were the original developers of the complex. They hold the title for 6 apartments in the building and have been managing the complex for the last few years.
Janet and Ben opted for an extended settlement date as they live in a small family home owned by their Janet's grandmother and would like some time before they commence their mortgage payment on the new apartment.
Ben is a software developer with a reliable income and runs a small digital agency. Janet is a yoga instructor with an unreliable income. They have two cats, Tabatha and Ginger.
Ben and Janet's funds for the property will be financed through Loany Wealth with the loan amount being $600,000 and Janet's grandmother funding the balance. Settlement for the property is due on 27th December.
The title register statement shows the property is attached to a registered mortgage to Westwealth Bank (for $780 000), and a caveat lodged by Eco Building Materials (claiming an amount of $25000). As well as the register statement, the vendor's statement also has attached council and water rates and land tax certificates and Owners Corporation information as required by the legislation, except the copy of the relevant Owners Corporation rules. The contract of sale is in the standard form with no extra special conditions.
Question:
Identify and explain the requirements that would need to be satisfied in accordance with the Sale of Land Act to the release of the deposit to the vendor. Can the purchasers object to the release of the deposit? You can refer to the appropriate legislation in Victoria Australia.