Large sum requested by estate agent! HELP

jazzpootle

Long time reader, first time posting!

My parents are moving house - they know nothing about moving house and won't listen to the advice of their offspring who have moved many times.

The process is moving quickly; they sold their house to the first people that viewed (full asking price!) and then 2 days later offered on the first house they viewed which was accepted! Now the estate agent has asked my parents to firstly pay up front for the house, to which they declined (thank goodness) but they settled on a deposit of £10,000. I've never parted with a deposit for a house and I can't understand why they're being asked. I suspect it has something to do with keeping the chain in tact and if you pull out we'll use your funds to cover costs but it's not a legal requirement is it?

Any advice here would be helpful.

Many thanks.

silvercar

Sounds unnecessary to me. What does their solicitor say?

PasturesNew

Sounds highly irregular. Don't hand over any money ... I think a few agents are starting to try it on like this.

Step back and really investigate what it's for, who is asking, why - and what happens if they tell the agent "s0d off"

RAS

They need a solicitor urgently and to take their advice on everything.

princeofpounds

Not only is it unnecessary, it is highly irregular.

Whilst deals like this are done very very occasionally for specific reasons, this is almost certainly a terrible idea.

If your parents won't listen to you as children, then at least get them to raise it with their lawyer.

AnnieO1234

If the buyer needs assurance arrange for the funds to be deposited with your parents solicitor; for transfer on exchange. Do not pass any money to estate agent/vendor or any other party.

X

Edi81

Make sure they get their own solicitor and doing use the one recommended by the EA.

LisbonLaura

The EA wouldn't be Connells?

G_M

A token 'deposit' to the estate agent of around £100 is acceptable.

This? :eek:


Any deposit like this should only be paid to a solicitor, theirs or the other side's, to be held to order - that solicitor then cannot release it without specific instrucion from the parents. Their professional duty is involved. An estate agent has no such code.

ACG

Why is the money being paid to the estate agents?
their deposit goes to the solicitor closer to exchange/completion not this early on and not to the estate agent.

What happens to the money with the estate agents if they go bust?
What happens if the vendor ups the purchase price and holds on to the money should your parents not agree?

This is wrong - I dont even agree with G_M above - anything to the estate agent is unacceptable and unnecessary.

jazzpootle

Thanks for all of the advice. I will call my parents and tell them to talk to their solicitor and not hand anything over to the EAs.