Seller wants access to deposit before completion

HouseBuyer77

MataNui wrote: »

Its not sufficient. It still ignores the (increasing) possibility that the sale could go south after exchange. The OP will be in no better a position to get that money back by doing that than just flat agreeing.

Being entitled to the deposit back and getting it back are 2 very different things. Thats why its held by the solicitor in the first place and not given out as pocket money.

The suggestion is a solicitor (either vendors or buyers) writes a letter to the LL that confirms that 6k of the house sale price will be transferred directly to them upon completion (effectively the LL forms a side-branch of the chain). There is no risk to the buyer as if completion doesn't happen the 6k stays where it is (vendors don't get their hands on it).

Arthritic_Toe

Ali1305 wrote: »

Not DIY conveyancing the request came from their solicitors. They say it is so one of the sellers can use the money as a deposit on rental property. If we don't agree they say the will take the house off the market

This makes no sense. If the request came from their solicitors, and they (their solicitors) were happy about it, there would be nothing to prevent them passing the money onto their client. This has 'scam' written all over it. Are you sure someone isn't posing as their solicitors?

davidmcn

Arthritic_Toe wrote: »

This makes no sense. If the request came from their solicitors, and they (their solicitors) were happy about it, there would be nothing to prevent them passing the money onto their client. This has 'scam' written all over it. Are you sure someone isn't posing as their solicitors?

I think you've misunderstood. The request is to amend the contract to allow the deposit to be used in this way. Both parties would need to agree.

fed_up_and_stressed

Ali1305 wrote: »

We are in the process of buying our first house and the sellers have just asked if they can hold part of the deposit as agent. This means that upon exchange of contract £6,000 of the deposit would go straight to them rather than being held by their solicitor. I was just wondering if anyone had experienced anything similar?

I'd agree but only to it on condition of it being simultaneous exchange and completion. :rotfl:

nkkingston

I wonder if they've been told they can only get a mortgage if they reduce their current debt by £6k, so they're looking for ways to do that. They don't want you to know that this close to exchange they aren't actually ready to move yet, hence the fudging about it being a rental deposit instead. Without the £6k, they can't get a mortgage so can't move, so might as well take it off the market.

eddddy

HouseBuyer77 wrote: »

The suggestion is a solicitor (either vendors or buyers) writes a letter to the LL that confirms that 6k of the house sale price will be transferred directly to them upon completion (effectively the LL forms a side-branch of the chain). There is no risk to the buyer as if completion doesn't happen the 6k stays where it is (vendors don't get their hands on it).

It's certainly achievable from a legal point of view (it would be arranged by the vendor's solicitor).

It's a matter of whether the LL would agree to the hassle.

e.g.
- the LL waiting around on completion day until the £6k hits their account, before handing over the keys...

- and now buyer, seller and LL will all have to negotiate/agree the completion date


If the rental market is buoyant in the area, the LL might prefer to just find another tenant who will pay their deposit in advance in the "conventional way".