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Percent deposit at exchage
R997
Posts: 61 Forumite
We've reached the point at whcih we're ready to exchange contracts. Our solicitor has been pretty much useless. We know they've lied to us, they've lost documents and communication back and forth was woeful. Basically, I have zero faith.
On Friday they wrote to us with an invoice for their services and asking us to transfer the balance of cash to them. This is over a hundred-thousand pounds, and is about 35% of the value of the property. I'm a bit jumpy about this to say the least. It's a huge amount of money to give to someone you don't trust.
I've read elsewhere that you should expect to transfer 10% on exchange as a deposit and clear the remainder on completion. Is that normal, or is what they're asking me to do the norm?
Also, should I be asking them for proof that they're insured, or that my money is protected in the event they cease trading or something similar. It sounds paranoid I know, but it's esentially all the money I have in the world.
I have no faith in these people, but we're too far through the process to change now. What questions should I be asking them?
On Friday they wrote to us with an invoice for their services and asking us to transfer the balance of cash to them. This is over a hundred-thousand pounds, and is about 35% of the value of the property. I'm a bit jumpy about this to say the least. It's a huge amount of money to give to someone you don't trust.
I've read elsewhere that you should expect to transfer 10% on exchange as a deposit and clear the remainder on completion. Is that normal, or is what they're asking me to do the norm?
Also, should I be asking them for proof that they're insured, or that my money is protected in the event they cease trading or something similar. It sounds paranoid I know, but it's esentially all the money I have in the world.
I have no faith in these people, but we're too far through the process to change now. What questions should I be asking them?
0
Comments
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My solictor gave me an invoice that had two balances. One was balance required for exchange. The other was total required to complete purchase. Exchange balance was 10% of purchase price, the completion balance was the full deposit + fees, stamp duty etc. There's no reason you couldn't give them the exchange balance only and then transfer the rest post-exchange though it could potentially delay completion.
I just transferred the lot in one go, however I do have a competent solictor that I trust...0 -
10% is the norm - unless you've agreed more (or less) with the seller. Do not transfer more than you're comfortable with, and certainly refuse to put in any more if you don't trust them.
Contact the Law Soceity to make sure they're a member in good standing. And ask to see evidence that they're up to date with professional insurance.
It's a huge amount of money and you certainly can't be too cautious.0
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