Section 27 of the Sale of Land Act 1962 (Vic) creates a process for early release of a deposit held by a stakeholder. It includes information and purchaser protection requirements. It is not an automatic direction to release funds simply because the seller requests them. Obtain advice before authorising release, particularly where mortgage liabilities or other concerns remain. Deposit release does not remove the buyer's obligation to fund settlement.
The contract may regulate interest, notices, termination and other consequences. Do not assume there is a universal grace period or that all lenders' delays excuse performance. Ask for any extension in writing and confirm the revised date, financial consequences and whether other rights are reserved. A request is not an agreement. If you receive a default notice, have its validity, deadline and required remedy checked promptly.
Tanwar Enterprises Pty Ltd v Cauchi (2003) 217 CLR 315; [2003] HCA 57 concerned a purchaser unable to complete by an essential deadline, with funds available the next day. The High Court did not grant relief against the vendors' termination. It was a NSW transaction with particular contractual circumstances, not a rule that every Victorian delay permits immediate termination. It demonstrates the danger of relying on an assumed equitable rescue.
Confirm lender readiness, identity checks and the availability of cleared funds well in advance. Where money comes from China, allow time for lawful transfers and source of funds enquiries; never assume an international remittance arrives instantly. Keep written records of obstacles and communications. Before withholding funds, claiming compensation or accepting termination, obtain advice on the contract and the remedy that is actually available.
Author: Jin Qian
Last updated: October 2026
Jurisdiction: Victoria, Australia
Disclaimer: This article provides general information only and does not constitute legal, financial or tax advice. The law may change and its application depends on individual circumstances. You should obtain professional advice before acting on the information contained in this article.