Deposit Amount when Exchanging

Richard_Webster

Possibly if the seller and buyer knew each other very well and the seller wasn't buying on they might proceed without a deposit.

crusty_toenail

Richard_Webster wrote: »

Possibly if the seller and buyer knew each other very well and the seller wasn't buying on they might proceed without a deposit.

I was buying only, no selling, but had substantial deposit as my house sale was 2 years previous, so solicitor knew I had funds, so perhaps this is why no deposit was required.

Also my solicitor knew my funds were tied up in a bond, I had no access to them until the completion date, so perhaps vendor solicitor didn't ask for a deposit cause my solicitor told him it wouldn't be possible to provide one?

Richard_Webster

Quote:
Originally Posted by Richard Webster
Possibly if the seller and buyer knew each other very well and the seller wasn't buying on they might proceed without a deposit.
I was buying only, no selling, but had substantial deposit as my house sale was 2 years previous, so solicitor knew I had funds, so perhaps this is why no deposit was required.

Also my solicitor knew my funds were tied up in a bond, I had no access to them until the completion date, so perhaps vendor solicitor didn't ask for a deposit cause my solicitor told him it wouldn't be possible to provide one?

In this case there are two possibilities:

1. Exchange and completion took place on the same day; or
2. The seller took a view on the basis that if Crusty Toenail didn't proceed he would simply put the place back on the market. (I wouldn't have done that because the seller would have been stuck with Estates Agent's Fees if he had exchanged.)

PasseySam

When we bought recently we had substantial funds from the previous sale of a flat to put towards the purchase of our house. Our solicitor knew our financial situation but still we put down a 10% deposit on exchange as is the norm. Even if I was buying from/selling to friends I would still do this - maybe even more so to avoid the possibility of it falling through and ruining a friendship!

As a seller there is no way I would proceed without a deposit, even if the buyers solicitor said that funds were not available until completion as this would ring alarm bells perhaps even more- what if these funds were still not available on completion and the buyer was unable to complete the purchase? If the funds were not available until the completion date then the exchange would not happen until then either.

Sorry OP, a bit of an aside to your original question... hope the purchase is going smoothly and you have your survey results soon :-)

Evilm

The solicitors normally arrange it between themselves. Whilst we were liable for the 10% on ours less than 10% was put down on exchange but the solicitor had provided an undertaking that the rest would be provided upon completion or upon us pulling out.

crusty_toenail

Richard_Webster wrote: »

In this case there are two possibilities:

1. Exchange and completion took place on the same day; or
2. The seller took a view on the basis that if Crusty Toenail didn't proceed he would simply put the place back on the market. (I wouldn't have done that because the seller would have been stuck with Estates Agent's Fees if he had exchanged.)

Oh forgot to mention I am in Northern Ireland and our system I think might be slightly different.

timmyt

Carlm wrote: »

Hi,

Just reading through the conveyancing doc pack I just got, It says a normal deposit when exchanging is usually 10%. Is this a normal amount? the house were buying is 191k.

After exchanging if the seller pulled out what would happen, unlikely I'm sure, just want to know.

The survey was done today, how long does it usually take to get the results?

Thanks,

10% is usual if you have nothing to sell as most people can no longer get higher than 90% mortgages.

but if you have a sale, most sellers to you will accept whatever is coming up to you from your Buyer...often less than 10%

Richard_Webster

Quote:
Originally Posted by Richard Webster
In this case there are two possibilities:

1. Exchange and completion took place on the same day; or
2. The seller took a view on the basis that if Crusty Toenail didn't proceed he would simply put the place back on the market. (I wouldn't have done that because the seller would have been stuck with Estates Agent's Fees if he had exchanged.)
Oh forgot to mention I am in Northern Ireland and our system I think might be slightly different.

When will those who run this site wake up and set up separate forums for Scotland and Northern Ireland so we don't waste out time on these long threads?