Selling - can i request proof of deposit

JASS8269

Hello, I've not posted before but after a bit of info.

We recently got all the way to (almost) exchanging on our house sale and our buyer had to pull out due to her buyer being a little difficult. We had to re-market and luckily found a new buyer very quickly. The buyer is a FTB with a mortgage in place. They told us they wanted to complete on 2nd Dec which we were fine about. I called our solicitor to check all was still ok for Friday and we have now discovered that the buyers solicitor has been off/away and hasn't requested funds from the bank and won't be in a position to complete on Friday. We're disappointed, but said ok, can we please exchange then so we know were going ahead etc. We have now found out that the solicitors do not have the deposit funds from the buyer yet so cannot exchange. Now we are worried they may not have the funds and we are going to lose the sale - we do not know if the buyer even has the deposit. You assume in good faith they do as they've applied for a mortgage etc, but what I'm wondering is can we ask them for proof of funds so we know they have the deposit to make up the shortfall from the mortgage? Not sure if this is something that can be done? Price is agreed etc so we're not looking to change anything like that we just want to know they are in a position to actually buy the house or we will have to re-market again

thanks in advance

SparksAlive

I don't know it works when you're already at this stage - when I put an offer on the house I'm buying, they didn't take it off the market till I'd shown the agent proof of my deposit and other bits and pieces.


It can't hurt to ask. Bit worrying that they haven't transferred it but I feel like it would also be a bit strange for them to get all the way to this stage if they didn't have the money. Like, what would the expect to happen next?

Surrey_EA

Ask your solicitor to obtain confirmation from your buyer's solicitor that the buyer has the required deposit, and am estimate of when it will be available in the solicitors account to exchange contracts.

JASS8269

Yes, the logical part of me (us) feels that of course they have the deposit as who pays survey fees and mortgage fees etc knowing you can't make up the final balance, I guess I just have a slightly suspicious mind! Thank you

G_M

JASS8269 wrote: »

......we have now discovered that the buyers solicitor has been off/away and hasn't requested funds from the bank and won't be in a position to complete on Friday. ......

We have now found out that the solicitors do not have the deposit funds from the buyer yet so cannot exchange.

I assume the hope was that you would Exchange and Complete on the same day - Friday?

since the buyer's solicitor (due to being away?) has not arranged the mortgage lender to transfer the loan, it is not surprising he has also not arranged for the buyer to transfer the deposit.

That is no indication that the buyer does not have the cash- simply that it's not in the solicotor's hands.

Stop panicking and just carry on. This is part of the problem with simultaneous Exchnage/Completion.

JASS8269

@Surrey_EA

I asked the solicitor and they just told me they can't ask that but the Estate Agent can. I'm waiting for a call back from them on this anyway so I will ask them then. They are estimating Friday/Monday to exchange "maybe". I think it is the vagueness that is making us concerned.

JASS8269

Hello @G_M no we were hoping to exchange today/tomorrow and complete on Friday, we were not wanting to do so simultaneously due to the problems that can arise and the uncertainty. As of Friday gone when we had contact with the buyers solicitor there was no indication that they were pushing the date (they suggested the 2nd originally) back to the 9th, it was only today when we hadn't heard a rely to a request on friday that after a phone call it came to light.

As I say I may just be being overly suspicious/worried, but it has fallen through at the last minute before and we just want it gone now! So I guess the proof would really just be piece of mind for us.

G_M wrote: »

I assume the hope was that you would Exchange and Complete on the same day - Friday?

since the buyer's solicitor (due to being away?) has not arranged the mortgage lender to transfer the loan, it is not surprising he has also not arranged for the buyer to transfer the deposit.

That is no indication that the buyer does not have the cash- simply that it's not in the solicotor's hands.

Stop panicking and just carry on. This is part of the problem with simultaneous Exchnage/Completion.

davidmcn

What sort of "proof" are you hoping for? Their solicitor can't confirm much until they have the money in their account. You can ask, but it's not a normal request.

G_M

JASS8269 wrote: »

.... They are estimating Friday/Monday to exchange "maybe". I think it is the vagueness that is making us concerned.

EAs don't know when Exchange will happe- only the solicitors (and buyers) can decide.

Excange dates are by definition always vague. There are 103 possible reasons why the hoped-for date may be pushed back (or cancelled completely).

Number 38 is "buyer's mortgage funds not requested (or sent) in time."

Surrey_EA

JASS8269 wrote: »

@Surrey_EA

I asked the solicitor and they just told me they can't ask

I find that a little strange, it seems a perfectly acceptable question for your solicitor to ask of their opposite number.

JASS8269

davidmcn wrote: »

What sort of "proof" are you hoping for? Their solicitor can't confirm much until they have the money in their account. You can ask, but it's not a normal request.

Hello @davidmcn this is why I asked the question! We weren't sure if it was normal or unusual to ask or whether EA have this as a matter of course . We know they have a mortgage, but I suppose at the is stage we want to know they have the balance too. I have heard and read (on other forum threads) of buyers pulling out as the money they were promised by family members or from other sources as deposits does not come through.