Deposit needs to be in account for 3 months. Is this common practice?

Jon_B_2

marksoton wrote: »

I don't care what your question was.

You're committing fraud and i hope you get caught.

You are so pathetic.

Is it an official loan agreement without paperwork or a contract? No, I don't think it is.

It is a gift in the purest sense of the word. The gifter signs a legally binding document for the lender and solicitor that explicitly states that the money is a gift and that they have no interest or charge applied to the property.

What the giftee then does post completion as an informal agreement is entirely up to them.

It's a grey area, but believe me this practice is not uncommon.

theartfullodger

Lww wrote: »

So we've just received a letter from our solicitors stating that they wont be able to accept funds nearing completion until we can prove that it has been in the account for at least 3 months. The problem is that the funds havent been there for anywhere near that time, and we are also loaning money from family..............

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Lww wrote: »

We have been asked if we are going to loan money, to which the answer was yes.

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Lww wrote: »

We're borrowing a small amount to help us out. We have been saving the rest for quite a while, it's just the final bit that they want to sort us out with...................

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Lww wrote: »

Well I understand that if there's any intention on it being paid back in the future (which I intend on doing) then it's technically classed as a loan. ......

Best wishes to all

Jon_B_2

Is it a written loan agreement? That hasn't been disclosed and I would suggest based on other posts it is not. Therefore it is an informal agreement.

marksoton

Jon_B wrote: »

You are so pathetic.

Is it an official loan agreement without paperwork or a contract? No, I don't think it is.

It is a gift in the purest sense of the word. The gifter signs a legally binding document for the lender and solicitor that explicitly states that the money is a gift and that they have no interest or charge applied to the property.

What the giftee then does post completion as an informal agreement is entirely up to them.

It's a grey area, but believe me this practice is not uncommon.

I don't recall claiming it doesn't happen. Doesn't mean i'm going to encourage it on a public forum....

Jon_B wrote: »

Is it a written loan agreement? That hasn't been disclosed and I would suggest based on other posts it is not. Therefore it is an informal agreement.

Which makes absolutely zero difference....

kinger101

Jon_B wrote: »

Is it a written loan agreement? That hasn't been disclosed and I would suggest based on other posts it is not. Therefore it is an informal agreement.

If there is any expectation that the person providing the money wants it back, it's a loan. Although a written agreement would be sensible, the absence of one doesn't make it a gift.