Vendors backing out after exchange of contracts?

pimento

It was Welshwoof's vendor who pulled out after exchange, not her buyer.

Hopejack

Sorry, have edited my post - it was indeed her seller that pulled out - typo!

molerat

here it is http://forums.moneysavingexpert.com/showthread.html?t=1806123&highlight=vendor+pulled 950 replies :eek:. The outcome was the vendors are not as rich as they used to be

Richard_Webster

However, to cover your concerns - you always have to pay a deposit as purchaser on exchange of contracts, usually it's 10% of the purchase price. This is held by the vendors solicitor who cannot pass it on to the vendors, under solicitors rules, until completion takes place. Perhaps Richard Webster could confirm this is correct and the vendors solicitor would be liable if the deposit were passed on?

If you are agreeing to pay £10K direct to the vendor, speak to your solicitor about it, I'm sure it would be a NO, NO, because if they did pull out after exchange it would be much more difficult to recover.

That's broadly right. it isn't solicitor's rules such but that in virtually all cases buyer's solicitors insist that deposit is held by the solicitor at the top of a chain as stakeholder. Mortgage lenders selling under their power of sale and builders who are bonded for deposits by NHBC if they go bust usually require the deposit to be paid to the seller's solicitors as agents so that it can be passed onto the seller.

The advice given is the same - don't ever pay a deposit direct to a seller.

pimento

Hopejack wrote: »

Sorry, have edited my post - it was indeed her seller that pulled out - typo!

Sorry, it's the pedant in me...