At times, certain matters come along where the seller of a property needs access to the deposit prior to settlement that allows them to be able to purchase their next property.
When taking instructions from a client, it’s important to understand the goal trying to be achieved. In some cases, a seller is downsizing from the family home and buying into an over 55’s village. Some of these villages allow access to the property once a deposit is made. This allows the seller to arrange removalists and other relocation tasks whilst still maintaining the family home.
Prior to any home being put on the market, it’s necessary to discuss risk mitigation strategies with the client should anything go awry. This includes understanding the client’s financial health and how they may finance the purchase of a new home if their sale deals falls through but are still committed to buy their new home.
In some cases super may be relied on as a backup, however additional financial advice should also be sought. Access to super must be an option on the table but for the younger generations, this is not an option and other avenues must be explored.
Including a clause to release a deposit before settlement is not common, but may be a special condition. If you or someone you know is buying at the same time as selling and specifically needs access to the deposit prior to settlement, please contact me for a confidential discussion. You never know but it might just change your life or someone you know and hold dear. After all, I hold the key to your next property.