Ever had the purchaser’s solicitor demanding the deposit back, while the vendor’s solicitor insists it must be held?
You’re stuck in the middle… so what do you do?
✅ Hold the funds. Always.
Under NSW law, you can only release the deposit if BOTH parties agree in writing or there’s a court or tribunal order.
You’re not taking sides—you’re the stakeholder, and your role is to protect the integrity of the trust account.
Clause 2.1 of the NSW Contract: You hold the deposit as stakeholder.
Section 86 of the Property & Stock Agents Act 2002: You must follow written instructions from the party the money is held for (but in a dispute, that’s unclear—so you hold).
Don’t cave to pressure. Don’t act on one-sided instructions.
Protect your licence. Protect your trust account.
Pro tip: Keep all communication in writing, and never release trust money in a dispute without agreement from both sides. When in doubt, hold.
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