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The interest should follow the deposit that is it should end up wherever the deposit ends up, which is usually the seller. However this rarely happens because the deposit is commonly held in an agent or solicitor's trust accouts. If the deposit is in a solicitor's trust account, the interest is siphoned off into a fund that was once called the Solicitors' Guarantee Fund. If the deposit is in an agent's trust account, the interest goes into a fund that was once called the Estate Agents Guarantee Fund.
If you want to earn interest on your own deposit money, it is essential that you keep it out of agents/solicitors "trust" accounts, and the deposit legislation allows you to do this by putting it in a bank account in the joint names of buyer and seller. This is rarely done in practice and it will require 100 points tests from both sides and set up the joint bank account together. |
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