Deposit ?

edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
4 replies 922 views
richwesthorperichwesthorpe Forumite
9 Posts
edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
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

Replies

  • BossybootsBossyboots Forumite
    6.7K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
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    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.
  • Woods8Woods8 Forumite
    21 Posts
    If you are selling the deposit will come up the chain.
  • paylesspayless Forumite
    6.9K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
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    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 .
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • Thanks very much all, spoke to my solicitor today and it does come up the chain
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