Paying Deposit

linda.b_4

We're about to sell our house and buy another. Should complete in a few weeks. Out of our equity we are putting down over half the price of the house as deposit. When does this money get paid? Do we have to part with any actual cash or is it transferred from our sale to the new house? Bit confused as read posts here about how people pay their deposit (bankers draft etc). Is this just FTB'ers? Also do we exchange and complete on the same day? :think: Thanks.

AndrewSmith

Hi Linda,

It works very simply.

During the conveyancing the solicitor will ask you for some money up front, say £500 to cover initial expenses and local searches etc.

If you are selling a property and releasing equity then your deposit, estate agency, solicitor fees, stamp duty etc will be taken from these funds automatically. If there is a shortfall you will have to pay it to the solicitor before exchange.

Solicitors are hapy to work on this basis as they actually receive the money and distribute it, so have total control over who and what is paid.

Also, no you do not have to exchange and complete on the same day.

Not only do I speak from professional experience but I have also recently sold and moved, so have experienced it first hand.

Hope this helps

Andy

linda.b_4

Cheers for that! Was worried about how to lay my hands on wads of cash before completion could take place.