Our seller wants deposit in cash on exchange

llocke

Hi
We are almost ready to exchange contracts but the person we are buying from wants released to him, £2500 on the day of exchange. Our buyers solicitor won't release funds for this purpose and I fear we could lose the house. Is there any way we can do this that will not risk losing the money if things go wrong. He apparently needs the money for rented accommodation. Any advice would be greatly appreciated.

Doozergirl

No, no, no. The money is held in trust by the solicitors until completion. Your vendor gets nothing in the hand until mortgages etc have been paid off etc by the solicitors.

He can pay his rent on completion day when the money hits the bank. Not before.

Malmo

Doozergirl is right.

Also refer to the Law Society Standard Conditions of Sale, section 2.2.4 pertaining to Deposits.

http://www.lawsociety.org.uk/support-services/advice/articles/standard-conditions-of-sale/

moneyistooshorttomention

The vast majority of other buyers would also not be able to stump up cash from a deposit on day of exchange either.

If he is that desperate for money, then he wont be wanting to go through the whole palaver of finding another buyer and getting them as far as Exchange of Contracts day and try the same trick again (and find they are, more than likely, in the same position of yourselves - ie with that 10% deposit money in the hands of THEIR buyer).

llocke

I forgot to mention the estate agent said he would need this money at the very beginning when the sale was agreed. However, the way it was said was as though it was an easy process and it just came from the bottom of the chain and worked it's way up. There was no mention of it being an absolute nightmare of a process. I just said as long as our buyer was ok them we were fine with it. I may have been naive in regards to this scenario as I've only bought and sold once before and never had this. It was only a few weeks ago that our sellers solicitor have requested his upfront money.

Doozergirl

It isn't a nightmare of a process. They're deviating from it and putting your money heavily at risk if you follow their instructions.

I'm worried about the EA. Who are they?

The solicitors can ask on his behalf. It doesn't mean they know they will get.

Work closely with your solicitor here.

llocke

I don't want to say, they have been great and sold our house too, but this part has annoyed me. I'm running out of ideas. Our solicitor said I'd have to sign a waiver to proceed with that and that's only if iur buyer solicitor agrees, which is unlikely. My husband is coming up will all sorts if suggestions on the high street he can do to get money early and secure it but that, I feel, is their issue. He hasn't spent money whereas we have so he could drop out at anytime . Thanks for your urgent responses btw

llocke

Do you think it's dodgy? X

anselld

llocke wrote: »

Do you think it's dodgy? X

Of course it is dodgy! Perhaps the Agent is not a criminal mastermind and might just be looking for inventive ways to facilitate a sale, but nobody in their right mind exchanges money outside of the normal process, especially not prior to exchange.

Solicitors are there for a reason. You would be well advised to follow their advice rather than looking for alternative ideas from the internet.


Edit: PS. The EA has not been "great". They have deceived you into committing funds to a purchase which is legally off-piste! If they want the sale that much tell them they can lend the vendors the money in advance of their fee. No? Thought not.

llocke

He wants the money at exchange, not before. Our solicitor is advising us well. We definitely will be following her advice but I wanted as many suggestions so we could give these alternatives to him. I just want him to know we are not being taken for a ride. Thanks so
Much for all your advice

Doozergirl

You are being taken for a ride.

There are no alternatives.