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Vendor wants us to release some of the deposit before completion

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Comments

  • eddddy
    eddddy Posts: 17,500 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    As you probably appreciate, the risk is that the vendor takes the money - and then doesn't complete (e.g. they decide they don't want to move out after all.)

    It means you would have to add £10k to the amount you would otherwise sue the seller for.

    If you look at things pessimistically...
    ... the fact that the seller needs to 'borrow' £10k, and the fact that they are selling to move into rented, suggests that they are in poor financial shape. So suing them might not be very fruitful.

    But... it's very, very rare that people exchange but don't complete.

    So ask your solicitor's advice.
  • j_yorks
    j_yorks Posts: 164 Forumite
    Sorry to ask questions on a thread which isn't mine, but how does this business with the 10% deposit work for people like us who are putting down a deposit of less than 10%?
  • kinger101
    kinger101 Posts: 6,503 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    j_yorks wrote: »
    Sorry to ask questions on a thread which isn't mine, but how does this business with the 10% deposit work for people like us who are putting down a deposit of less than 10%?

    The deposit doesn't have to be 10%. It can be any amount. 10% is customary but it can be lower if someone is using a 95% mortgage.
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • Kynthia
    Kynthia Posts: 5,689 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    CLAPTON wrote: »
    I've had the situation where my buyer asked to pay only 5% rather than 10%

    I asked my solicitor what their best advice would be : they said refuse: although the risk was small, I had nothing to gain but something to lose

    You could have lost your buyer if they only had 5%. Many people buying with a 95% mortgage don't have 10% of the property value available in cash at exchange. However the fact that your solicitor advised you to refuse makes me wonder if this wasn't the reason in your case as usually don't find this a problem
    Don't listen to me, I'm no expert!
  • What if you gave them eg £2000. Then they spent it on miscellaneous and when it came to completion they didn't have enough money to move out?
    Ankh Morpork Sunshine Sanctuary for Sick Dragons - don't let my flame go out!
  • Nobbie1967
    Nobbie1967 Posts: 1,615 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    j_yorks wrote: »
    Sorry to ask questions on a thread which isn't mine, but how does this business with the 10% deposit work for people like us who are putting down a deposit of less than 10%?

    I think post 2 answers your question
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