DepositPay allows vendors to use the deposit received in a property sale as a bridging loan, before the sale has completed.
Rello pays the requested funds directly to the vendor, and when the property is sold Rello is repaid from settlement proceeds.
How does it work?
When a property sale contract has gone "unconditional", the vendor may request DepositPay directly from Rello or via their agent.
In either case a request is sent to the vendor via the Rello platform, enabling the vendor to provide required information for Rello to approve the request, typically including:
Requested amount
Copy of the sale contract
Confirmation of deposit amount held in trust with the agent
Outstanding mortgage balance on the sold property
And potentially other information specific to the request
The vendor:
Completes the information request
Verifies their identity using an Australian driver's licence or passport
Verifies their Australian mobile number and email
Confirms details of their conveyancer
Accepts the terms & conditions.
On approval, Rello sends the requested funds directly to the vendor's nominated bank account.
Rello will communicate directly with the vendor's conveyancer to confirm Rello's interest in the sale proceeds, and to confirm the vendor's advice to pay Rello has been received by the conveyancer.
When the property settles, funds are disbursed per the contract and the conveyancer pays Rello on behalf of the vendor.
The DepositPay agreement is ultimately between Rello and the vendor, with the vendor liable for repayment from the time of application, while the agent and/or conveyancer effectively facilitate the process for everyone's benefit.
What are the fees?
Rello charges a flat service fee on the request amount for 60 days from the date of approval, with extensions out to 120 days (total duration) possible for an additional fee.
The minimum service fee is $1,200, regardless of the requested amount.
Example (assume the service fee is 5.5%)
Requested amount: $200,000 Service fee: 5.5% of $200,000 = $11,000 Total repayable: $211,000
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How much can I access?
Rello will fund up to $250,000 via DepositPay.
When is repayment due?
A DepositPay agreement states repayment is due on the earlier of these milestones/events:
If the sale is cancelled
When the sale is settled
60 days from approval
If you need more time (e.g. settlement is delayed/extended), you can request an extension to the initial 60 day duration, up to a total of 120 days, for a fee.
Ultimately, the vendor is responsible for the DepositPay agreement being repaid and should ensure their conveyancer are enabled to do so per the terms of the agreement.
Legals
Latest DepositPay terms & conditions here.
Do not assume this document applies to a specific agreement - check the agreement for the appropriate version that is attached to that agreement.
Target market determination (TMD) here.
Privacy policy here.