What's the name of the 'bond' that secures the property you want to buy?

fimonkey

LOL, cheers Nelly!

SwampMan, that's exactly the idea I'd thought I'd read about and was looking for it's name, I'm sure I saw it mentioned in a paper somewhere.

Meanwhile, holding deposits, what's the point in them in a house sale (not renting) and who get's the money under what circumstances?

thanks

SpampMan

SpampMan wrote: »

A really good idea would be a form of escrow where both buyer and seller put a bond in an escrow account. If one of the parties changes their mind, they forfeit the bond. HMG should have set this up instead of the HIP.

It would also stop gazumping...;)

SpampMan

fimonkey wrote: »

LOL, cheers Nelly!

SwampMan, that's exactly the idea I'd thought I'd read about and was looking for it's name, I'm sure I saw it mentioned in a paper somewhere.

Meanwhile, holding deposits, what's the point in them in a house sale (not renting) and who get's the money under what circumstances?

thanks

Holding deposits don't mean anything. It is a goodwill gesture of intent and does not form a binding contract. Commonly encouraged by developers to get punters to buy off plan.

theGrinch

when used correctly holding deposits do work and I have never seen a sale fall through where they have been involved. However, I repeat, I am only use to this in the developer's world where properties and sites are £5m plus.

the money is held by the buyer's solicitor and an exclusivity contract is signed and exchanged. Again, this is witness by the solicitors of both parties.

yes it stops gazumping, gives a committment by both sides and can allow the time to apply for planning permission and raise finance in some cases.

as for residential sales, I have heard of them, but its very uncommon and more headache than its worth as most solicitors are ignorant of them.

the best solution I have seen to prevent sales falling through is the attended exchange. Its where the buyer's solicitors attend the office of the seller's solicitors and they sit and work through the contracts and questions. It can take from 1/2 day to 3 days (in complex cases), but can save months and months of time.