Servicemen’s Deposits

Dominion, Volume 37, Issue 7, 4 October 1943, Page 4

Servicemen’s Deposits

Sir,—lt was reported in your issue of October 2 that the president of the Auckland branch of the Returned Soldiers’ Association had stated that returned servicemen had lost deposits paid to land agents, owing to the necessary loan not having been obtained from the State Advances Department. I wish to state emphatically that this is a very definite mis-statement.

•No land agent can legally retain a deposit, as he collects it as trustee for the. vendor. The. vendor can, within a few days, demand payment from the agent and before payment is made the agent has the right under the Land Agents Act to deduct his commission, but only if he has been instrumental in bringing about a binding offer and acceptance contract between purchaser and vendor. The vendor is the only person who can refuse to refund. As a protection for servicemen all members of the Wellington branch have been instructed that where an agreement to purchase is being prepared on behalf of servicemen it must contain a qualification reading “this offer to purchase is made subject to my being able to make satisfactory financial arrangements with the State Advances Department,” ■ and furthermore any receipt for a deposit paid by a returned serviceman must state clearly that such deposit shall be returned intact if the transaction it refers to is not completed. The statement referred to has cast a serious stigma on the members of the Real Estate Institute, and I am taking immediate steps to haA-e a full investigation made into the complaint.—l am, etc., RICHARD A. LARGE. President, Wellington branch. Real Estate Institute. Wellington, October 2.