Small deposit?

srcandas

Hi. I'm selling my house. The buyer is one half of a divorce. There is one other house in the chain making three in all.

I have received a copy of a letter from the buyer's solicitor. It says

"Our clients sale is a matrimonial split and we believe there is a shared ownership property at the bottom of the chain and therefore the deposit may be quite small".

Does anyone know if this is normal or should concern me? Any thoughts greatly appreciated.:beer:

libf

http://fidler.co.uk/blogs/legalmove/category/conveyancing-deposit/

jackomdj

Nothing to worry about unless it gets past exchange but does not complete. It is often the case that the money used as a deposit is not available as ready cash, but is tied up in the chain.

srcandas

libf that clarifies what it is in great detail so many many thanks for that. I guess I next need to know what the feed deposit is at the start of the chain and if it justyfied. :cool:

kingstreet

As libf's link says;-

A word about chains

So what happens if you have a chain of transactions – i.e. A is selling to B who’s selling to C who’s selling to D. In theory each buyer would take the deposit coming in on their sale and have to make it up to 10% before passing it over on their purchase. That is actually the correct situation and some sellers will insist on this (and they are perfectly entitled to). The normal course of events however is that whatever deposit is handed over at the bottom of the chain (i.e. by the first time buyer) is then passed up the chain, so the people in the middle of the chain don’t have to find anything extra for their deposit.

is the correct answer.

In other words, don't worry about it.