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Deposit on Exchange
caeler
Posts: 2,638 Forumite
I understand the typical value of deposit on exchange is 10%. What happens if you don't have 10% in cash because you are relying on equity being released from a sale?
Just want to be prepared and understand what happens in these circumstances.
Just want to be prepared and understand what happens in these circumstances.
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As far as I'm aware, usually the people at the bottom of the chain pay the deposit and this is passed up the chain.0
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The two solicitors will agree between themselves what deposit is required. Possibly none, in the circumstances you describe.
Ask yours.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »The two solicitors will agree between themselves what deposit is required. Possibly none, in the circumstances you describe.
Ask yours.
Have done, just waiting to hear. I just wanted to understand what the norm is so I could prepare myself.0 -
A buyer on a previous property of mine only had £1000 for the 10% deposit when he needed over £23000. My solicitor said I could accept the £1000 on deposit and he would still be liable for the full 10% deposit should he pull out after exchange.
On a different property I sold I used the buyer's 10% deposit for the deposit on my new build property purchase I even though I needed more money to make up the 10%. The house builder was happy enough to accept less than 10%.0 -
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Still not got very far in agreeing a deposit value, other than I have to agree to less than 10% on my sale which is fine as long as it works both ways!
It seems like I have bigger problems, viewed the part-exchange contract today to find a rather sneaky clause that asks for simultaneous exchange and completion!!! :eek:0 -
Interestingly there will now be no deposits on exchange.0
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