Exchange of contracts and deposit

lottie0311

Ok,

This may seem an easy question to you but i dont know the answer.

We are hoping to exchange contracts on our new house in the next week or so, with completion on 21st June.

Some of the deposit is coming from our sale, and the capital wont be released until completion. and part of the deposit is funded from us.

when is the deposit payable? because we cant afford it pay it all, only our bit?

kingstreet

You won't pay a deposit on exchange. The deposit paid by your purchaser will be passed up the chain.

All your purchase monies will be paid at completion.

If you want to pay this contribution of yours over to your solicitor, I'm sure they will accept, but you don't need to do that.

tim123456789

kingstreet wrote: »

You won't pay a deposit on exchange. The deposit paid by your purchaser will be passed up the chain.

.

Only if the seller has agreed to accept a reduced deposit (assuming the OP's purchase is more expensive than their sale).

If they haven't so agreed, OP is expected to provide the shortfall out of their own funds on exchange day.

kingstreet

Yes, tim is quite correct.

Normally, the solicitors in the chain agree between themselves that the money at the bottom of the chain be passed up.

If that agreement is not reached, everyone would have to come up with a total of 10%, prior to exchange.

I've neither personally nor professionally seen a case where agreement wasn't reached, but I suppose there'll be one one day...