Holding deposit when buying house

wannahouse

Poppy2012 wrote: »

Thanks guys. The problem is that agent would not give us vendors details unless we pay this deposit. He says he is acting on behalf of vendor because vendor was messed us in the past and that is why deposit is required. I just wonder why they have accepted the offer in the first place?.. Looks like we have to start looking again...

we've paid a holding deposit on the place we're buying, for the same reason- vendor has been messed around by two lots now...we paid it to our solicitor who drew up some agreement with their solicitor...

Poppy2012

We have not seen the paperwork yet. Agent said deposit is non-refundable if we pull out. But as a valuation survey is not done yet we might not get the mortgage we need. So as everyone here advised, we would not go ahead with this purchase any more....

Poppy2012

Wannahouse, we also offered to pay this deposit to our solicitors but vendor insists on getting it into agency account.

thelem

What happens if you don't pay the deposit? If you've already paid for the survey and solicitor then it doesn't sound like you've got much more to lose by just continuing with the purchase. They can put the property back on the market, but that doesn't mean they'll get another offer. If you get to the point that you're ready to exchange then you can pay the deposit as normal, if they refuse to cooperate with your solicitor then there's probably something dodgy going on.

If it's the vendor's insisting on the depost then they may know that the survey will show something and you'll ask for a price reduction - whatever you do don't pay the deposit before you've got the survey results back.

Poppy2012

Thelem, that's what I fear. But we can not even arrange survey to be done as agent has not responded to surveyor's calls/emails. We were unsure of paying this deposit so decided to check here if someone else had similar experience (we are first time buyers)

Guest101

Never pay anything to the agent. The vendor deals with them.

You could possibly negotiate a deposit, subject to satusfactory survey, to be paid to their solicitor, which is non refundable, unless they decide to pull out, or increase the price. obviously signed by you and them.

This deposit would then form part of the 10% required by contract.

If they dont think that's fair then their problem.

Option B, let them carry on mareting it for sale, if they accept your offer. get survey and contracts asap.

ValHaller

Poppy2012 wrote: »

It is definitely the agent. We have been to this agency twice when viewing and then making an offer. You are right, our solicitors have got vendor's solicitors details but as agent said, the vendor would not proceed until gets this £2K from us. We have actually offered to pay it into our solicitors' account as a proof that we are serious about the purchase but vendor still would not accept.

OK, your solicitor should have vendor's details too - although it depends what your solicitor actually has

• If it is memorandum of sale (MoS), solicitor may only have vendor's solicitor's details
• If it is contract papers, then this should contain vendor's details

Poppy2012 wrote: »

We have not seen the paperwork yet. Agent said deposit is non-refundable if we pull out. But as a valuation survey is not done yet we might not get the mortgage we need. So as everyone here advised, we would not go ahead with this purchase any more....

Hang fire on quitting for the moment - find out whether your solicitor has MoS or contract papers and if it is the latter, get the vendor's address

Poppy2012 wrote: »

Thelem, that's what I fear. But we can not even arrange survey to be done as agent has not responded to surveyor's calls/emails. We were unsure of paying this deposit so decided to check here if someone else had similar experience (we are first time buyers)

As already stated, under no circumstances pay the agent anything.

I am thinking you need to see your solicitor and get them to write something along the lines

Dear <Vendor's Solicitor>

Concerning the purchase of <address>, my client advises that the Estate Agent <Agent> has requested a non returnable deposit of £2000, paid directly to the Agent.

I have advised our client not to place any deposit directly with the agent but to conduct transfers of funds through this office - and I am sure you would similarly advise your purchasing clients.

Would you kindly ascertain your client's intentions in respect of this deposit and the eventualities from which your client requires protection. An update on this on a short timescale would be appreciated.

Yours <Poppy's solicitor>

thelem wrote: »

.... If it's the vendor's insisting on the depost then they may know that the survey will show something and you'll ask for a price reduction - whatever you do don't pay the deposit before you've got the survey results back.

This makes sense as a reason - but don't play to this tune!

wannahouse

Guest101 wrote: »

Never pay anything to the agent. The vendor deals with them.

You could possibly negotiate a deposit, subject to satusfactory survey, to be paid to their solicitor, which is non refundable, unless they decide to pull out, or increase the price. obviously signed by you and them.

This deposit would then form part of the 10% required by contract.

If they dont think that's fair then their problem.

Option B, let them carry on mareting it for sale, if they accept your offer. get survey and contracts asap.

this is what we did, and also said subject to it being mortgagable (as its been empty a few yrs)

mrginge

Perhaps you should tell the agent that you have been messed around by unscrupulous vendors in the past and you want them to pay you 2k to be refunded on completion.