Question about deposits - mid chain

henpecked1

Hi all.

We are in a three bit chain. The chain starts off in the channel isles which has already exchanged, buying a house in Newcastle which is buying ours. Now as far as I am aware the person at the beginning who has exchanged has paid a deposit.

Anyway, reading an email from my EA, she has said that the seller of the channel isles property has paid her deposit to fund the newcastle property - so it appears that two deposits have entered the chain.

My buyer presumably is using his purchasors deposit to buy mine. However as I am exchanging on my sale before I exchange on my purchase, am I going to have to put a deposit in as well, or will it go through with my buyers, buyer deposit...

in short, if exchange isnt straight in a chain, does a deposit have to be entered in the break?

G_M

Yup!

If you need to ask this question, I would advise you to use a solictor for your conveyancing rather than do it yourself.

And if you are using a solicitor, (s)he should be explaining this to you... or you should be asking him/her.

Sorry edit:- just re-read more carefully. You are Exchanging on your sale first, so will receive the deposit for this. You subsequently Exchange on your purchase, so could use the deposit your solicitor has received to fund your purchase.

Richard_Webster

If you sell before you buy then your solicitors hold the deposit which they receive from your buyers (which could be the original amount provided at the bottom or could have been added to). They can't pass the money on to you. If you exchange on your purchase later then they can use that deposit on your related purchase but depending on the amounts involved the seller's solicitors may want it supplemented.