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Odd, buying practice? Paying a deposit to secure a home
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Gets you nothing except problems about getting it back. Vendor probably does not know about it and unlikely to have any impact on him.
Different if they offered you an option to purchase as this would block out any other potential purchaser until the option expired.0 -
This thread might be interesting to you.
define 'awful'. What if you think it's awful but the seller thinks it's just a few minor issues....This money will be refundable if the survey is awful but
What if the searches throw up something? (council plans to build on the neighboring road....). Is it still refundable if you decide to withdraw because of this? Or some legal problem (no Building Regs for the extension...)
The reason property sales are not legally biding until Exchange is so that either side can withdraw, without penalty, if issues arise as the investiation progresses.
This deposit, with conditions on its refundability, is a can of worms.0 -
An option to purchase would allow you to buy the flat for the agreed price at any time in the next two months. If you decide not to buy, your only cost is that of the option, so £2,000. Options are very common in the financial world eg on shares. They are rare in the prioperty business except where the purchaser wants to get planning permission to redevelop the site, often along with other neighburing properties. If the pp is not forthcoming the plan can be abandonned at realitivly little cost. Poper legal documents need to be drawn up which adds to the complexity and cost.
An option is unlikley to be useful here. I refered to it as an example of how a legally binding deposit could be created. The vendor is likely to unaware of what the ea is up to.0 -
Why not offer to buy the carpets & curtains for say £500/£1,000,that way you'll still be under the 3% stamp duty,but will have made a higher offer?0
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is an EA likely to be suggesting this £2000 deposit without the vendor knowing about it? ... it doesn't sound like a good idea, anyway.
surely the vendor is likely to pick the most procedurable, straightforward buyer. if that's you, make that clear to them!0 -
Call the EA's bluff - the other intersted party may not even exist."You were only supposed to blow the bl**dy doors off!!"0
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when you speak to the EA, tell them you'd be happy to pay the deposit, but [STRIKE]the internet[/STRIKE]your solicitor advised against it.
surely there are more sensible things you can do to look like the better buyer. do you have an AIP? do you know which solicitor & surveyor you'll be using? ...
offering to buy extras separately is also possible, though you may not get out of the higher stamp duty if you pay an unrealistically high price for the extras, or if they are really part of the house (e.g. fitted carpets are surely part of the house, but appliances probably aren't unless they're built-in).
also, perhaps think whether the vendor seems to care more about having the sale go through quickly, or just with certainty.0 -
why not offer a contracts race - if your contract is ready first you get it otherwise the other gets it - proves you are genuine and seller gets a quick exchange0
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Suspicious. I wonder if a previous buyer has pulled out due to a not-so-great survey, and they're looking for a way to tie a new buyer in? As G_M very rightly said, "awful" is not a legally defined term! What they are asking is NOT standard and would afford no legal protection.
Politely decline but emphasise your good position, and perhaps offer to get your survey done within x days as a condition of acceptance, to show you are serious.0 -
regarding "have I got an AIP".. well no, not totally.. clydesdalebank have the best offer but they dont do AIP, you just have to do a full application and they asses you at that point.but my mortgage broker has spoken to them and he thinks it should be ok... but...
I'm talking to the EA tomorrow. ill let him know im not happy with a "deposit scheme" my broker and sol agree.
i would get an AIP (takes about an hour on the phone from C&G for example).
You can wave it at the EA , but you are under no obligation to use that company and can sort a deal out with clydebank if you prefer at a later date0
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