Securing a house with a deposit

Abbey1

The estate agent for the house we are hoping to buy has asked us to secure the house with a £5k deposit. Has anyone done this or know how it works? Obvously I won't just hand the money over but wondered what the general opinion was.

kingstreet

It's so unusual and irregular in this country. I'd say absolutely no chance. Run it past a solicitor, before you make any hard and fast decisions.

If you are in a position to proceed, making progress towards exchange is normally commitment enough. If not in a position to proceed, how do you know you can get "proceedable" quickly enough? Do you lose your money if you don't?

mrsmchapman

I've never heard of this, I'm not sure I would hand the money over.

Although I feel there should be one thing like this, that's another thread altogether

princeofpounds

Unless this is a new build property, where a slightly different set of rules exist, this is not remotely normal.

Handing over money will not secure you the property (you need to exchange contracts for that) and it exposes you to losing the money in a variety of ways.

zzzLazyDaisy

Also, while it puts you in a vulnerable position - potentially losing some or all of the money - it does not bind the seller who is free to accept a better offer if it comes along...