Common use of Stakeholding Clause in Contracts

Stakeholding. 12.1 The deposit must be released to the vendor if: (a) the vendor provides particulars, to the reasonable satisfaction of the purchaser, that either— (i) there are no debts secured against the property; or (ii) if there are any debts, the total amount of those debts does not exceed 80% of the sale price; and (b) at least 28 days have elapsed since the particulars were given to the purchaser under paragraph (a); and (c) all conditions of S27 of the Sale of Land Act 1962 (“the Act”) have been satisfied. 12.2 The stakeholder must pay the deposit and any interest to the party entitled when the deposit is released, the contract is settled, or the contract is ended. 12.3 The stakeholder may pay the deposit and any interest into court if it is reasonable to do so. 12.4 Where the purchaser is deemed by Section 27(7) of the Sale of Land Act 1962 to have given the deposit release authorization referred to in Section 27(1) of the Act, the purchaser is also deemed to have accepted title in the absence of any prior objection to title.