What is the procedure if the deposit is held as an agent rather than a stakeholder?

When a deposit is held as an agent rather than as a stakeholder, it indicates that the party holding the deposit (often the seller's conveyancer) has a fiduciary responsibility to act on behalf of the seller's interests. In this scenario, holding the deposit as an agent allows the conveyancer to manage the funds while working towards the completion of the sale.

Choosing to have the deposit paid to the seller's conveyancer aligns with their role as the agent. This means they are directly responsible for handling the deposit and ensuring that it is used appropriately towards the transaction. When the sale progresses, the deposit may eventually be applied to the purchase price, illustrating the importance of this role.

The other options do not fit the scenario of an agent holding the deposit. For example, involving a third-party escrow service (as mentioned in a different choice) would typically be the course of action if the deposit were held by a neutral stakeholder rather than by an agent. Similarly, paying the deposit directly to the buyer or returning the deposit if the sale does not complete would not reflect the fiduciary obligations of the conveyancer in their capacity as an agent for the seller. Each of these options fails to reflect the legal framework surrounding the agent-client relationship relevant to holding deposits in