EARLY RELEASE OF DEPOSIT
Both the Buyer and the Seller agree that [$INSERT] of the deposit in this matter will be released to the seller prior to settlement after [DATE/condition is satisfied/is unconditional with respect to finance and buyer’s inspections] at the direction the parties’ solicitors and on the following terms:
The parties do not intend to for this contract to take on any of the features of an Instalment Contract, and therefore the amount of the deposit (including any additional deposit) released under this Special Condition remains refundable to the Buyer in all circumstances in which it would have been required to be refunded to the Buyer if not for this special condition;
If, after its release, the deposit (including any additional deposit) becomes refundable to the Buyer, the Seller will, from the date on which the Buyer gives a valid notice to refund the deposit, be allowed [30/90/120] days in which to refund the deposit (including any additional deposit) to the Buyer as a single payment or otherwise and no interest can be charged by the Buyer on this amount;
To avoid doubt, the deposit (including any additional deposit) in all cases remains payable:
To the Buyer in the event of the Seller’s breach of contract; and
To the Seller in the event of the Buyer’s breach of contract;
If for any reason, it is unlawful for the deposit holder to release funds from the deposit, the Buyer agrees to pay an additional deposit of [$INSERT] directly to the Seller.
The buyer understands that this may cause the total amount of the deposit to be [$INSERT – original deposit amounts + additional deposit amount (which must not exceed 10% of the purchase price)].
In addition to the above the Seller agrees not to further encumber the property without the written express consent of the Buyer. Should the Seller fail in this undertaking prior to settlement the Buyer at their election may treat such a breach as a breach of a fundamental term of the contract allowing immediate termination, return of the deposit and a claim for damages