Browse Forums Buying Land 1 Apr 13, 2017 8:36 am Hi everyone, we have put down initial holding deposit of $1500 for a off the plan land purchase. We agreed to deposit 7% when we exchange contract. when we received the contract it had a clause saying we have to agree to the fact that the deposit money will be released to the vendor for their use. our lawyer said it is a very unsafe practice, what if our vendor gets bankrupt or broke. he said it's more safe to keep the deposit money in the agency trust for both of us and the vendor. So in case if anything goes wrong with either party, the money would be safe in the trust and either party can access it when allowed. So we asked the vendor lawyer to remove this clause. it has been more than a month to receive the revised contract. yesterday the vendor's lawyer spoke to our lawyer and there was an indication that this clause might not be changed. My question is how unsafe / unusual is it to release deposit money to the land owner? Re: 'Release of deposit money to the vendor' clause on OTP l 3Apr 15, 2017 8:22 am I have seen small builder's try to get the money in their account so that they can use it. Reputed builders put it in trust account. If you are comfortable with the builder's track record and the deal is at discount, you can think of it but definitely it's not safe practice. Unless there is something in special conditions the builder does not have to give you timeline. If your demolition contractor has not removed Asbestos and it was found… 12 28801 As a tradesmen get a private inspector although I don't think there worth it in their profession themselves the reminder they serve to the tradesmen doing the work is… 3 27364 I've just had a look at the website. The company are just building broker's. There are plenty of similar companies that basically draw your plans (they own them so you… 8 10928 |