What is a Section 27?

…And why it matters if you’re selling your home.

If you’ve been chatting with your conveyancer or agent and heard the term “Section 27” thrown around, you’re not alone in wondering what it actually means - and whether it matters to you.

At Woods, part of our role is making sure the jargon doesn’t get in the way of a smooth, confident selling journey. So here’s what you need to know, in simple, straightforward terms:

The Short Answer:

A Section 27 Statement is a legal document that can allow a seller to access their deposit early, before settlement. It’s named after Section 27 of
the Sale of Land Act 1962 (VIC).

Why Would You Want Early Access?

Normally, when a property sells, the deposit paid by the buyer is held in trust until settlement day. A Section 27 allows the seller to request early release of that deposit, which can be helpful for covering things like:

• Deposit on your next home

• Moving costs

• Financial commitments ahead of settlement

How Does it Work?

Your conveyancer prepares the Section 27 Statement, which outlines details about your mortgage and confirms there are no issues preventing early release. This is then provided to the buyer’s conveyancer for approval.

For the deposit to be released early:

• Your lender must confirm there’s no problem with discharging the mortgage

• The buyer’s conveyancer must agree

• The buyer has 28 days to object, otherwise, the funds can be released

Sometimes buyers choose not to approve early release, and that’s entirely within their rights. If that happens, the deposit stays safely in trust until settlement.

Need Guidance?

We work closely with trusted conveyancers and can help you navigate whether a Section 27 is right for you. If you have questions, we’re here to help make it simple.

Give us a call to chat about your sale or your next step.