Deposit ?

richwesthorpe

Hi I am in the prosess of buying a larger house.
I am in a chain of four second from the top . when i exchange contracts
will i pay the deposit with my own money or does it move up the chain
i am a bit confused

Bossyboots

You would normally be expected to pay the deposit from your own money but sometimes agreement can be reached for your purchaser's deposit to be used for your purchase. Your purchaser's money does not become yours until completion. If you fail to complete, you will have to pay the deposit back to the purchaser, plus your vendor will be entitled to keep the deposit paid to them under the contract terms which normally provide for forfeiture of the deposit in those circumstances.

Woods8

If you are selling the deposit will come up the chain.

payless

standard contract usually states 10%, but in my experience they just take the deposit from the person below you ( if your depoist is all in the equity) ... and that carrys down to the bottom ( so only the FTB/ no chain person at bottom pays anything )- can be different if the FTB at bottom is 100%, but in most cases the solicitors agree to lodge whatever fees they collected .

richwesthorpe

Thanks very much all, spoke to my solicitor today and it does come up the chain