5% deposit - seller not aware?

Bumblebee2128

Yes I have gone through the contract and can't find the exact amount anywhere only the 'usually 10%' part so not sure? Only thing I can find the actual amount on is the solicitor final fee.

G_M

1) when you signed the contract, presumably you read it first. I hope! So why did you not raise this with your solicitor at that time?

2) are both you and the seller using solicitors? If yes, why is the seller contacting you? He should be contacting his solicitor, who will contact your solicitor.

3) if the contract required a 10% deposit, and you only provided 5%, then Exchange cannot have happened - you (via your solicitor) will have breached the agreement

By the way - the deposit is sent by your solicitor to the seller's solicitor, who holds onto it. He should have noted it was too little, and compalined to your solicitor

4) Is your solicitor saying you have exchanged contracts, or not? He may think your've exchanged, but if the seller (via his solicitor) raises the shortfall in the deposit, I believe the contract will be cancelled.

As it is now Friday night, you won't be able to get answers till Monday, though a solicitor may post here over the weekend.

If you have not got the funds for a 10% deposit, you should have either
* asked your solicitor to negotiate a 5% deposit with the seller, or
* borrowed the extra money for the 2 weeks till Completion, when your mortgage money will be released.

Bumblebee2128

I didn't know the amount of deposit was anything to do with the buyer so where it said usually 10% it wasn't an issue as I'd have thought everyone was aware it was a 95% mortgage at that point. We have definitely exchanged as I had a phone call off my solicitor today and buyer confirmed it also. The seller is contacting me as we live local and actually viewed the house through the seller so have kept in touch as things progress.

G_M

Bumblebee2128 wrote: »

I didn't know the amount of deposit was anything to do with the buyer seller? so where it said usually 10% it wasn't an issue as I'd have thought everyone was aware it was a 95% mortgage at that point.
How could your seller (or his solicitor) know how much mortgage you were getting? It's none of their business!
We have definitely exchanged as I had a phone call off my solicitor today and buyer seller? I thought you were the buyer confirmed it also. The seller is contacting me as we live local and actually viewed the house through the seller so have kept in touch as things progress.

So how did you leave the conversation? The seller now has two options (on Monday):
1) to contact his solicitor and demand the extra 5%. His solicitor will have to do as he's told, so will contact your solicitor and tell him either to get the extra 5% sent over immediately (can you raise it? Borrow it?) or cancel the contract.

2) or the seller might just decide to 'let it go' - in other words, not make a fuss or raise an issue. But I expect he's pretty angry......?!

Bumblebee2128

Ok, my solicitor always knew it was a 95% mortgage so I would have thought somewhere along the line it would have been passed on to their solicitor, however, as I said I wasn't aware it was anything do to with the seller as it has not been mentioned at all. I of course meant seller but it has been a long and stressful night!

Bumblebee2128

Seller asked me why the deposit was short. I replied it was a 95% mortgage, and have not had a reply hours later, so assume he is not happy.

davidmcn

Bumblebee2128 wrote: »

Yes I have gone through the contract and can't find the exact amount anywhere only the 'usually 10%' part so not sure? Only thing I can find the actual amount on is the solicitor final fee.

I think whatever you're looking at isn't the contract. Should be something like this.

G_M

Bumblebee2128 wrote: »

Ok, my solicitor always knew it was a 95% mortgage so I would have thought somewhere along the line it would have been passed on to their solicitort

,definately not!Your mortgage is a private matter and nothing to do with the seller.

Did you read post 3 above? The deposit payable on Exchange is totally unconnected with the mortgage amount and/or the amount of personal money ('deposit') you are contributing to the purchase price.

I replied it was a 95% mortgage

That's not an answer to her question. She asked why you had not paid the 10% deposit required by the contract at Exchange.

She did not ask you how much money your were borrowing (if any) from a mortgage lender.

Having said all that, your solicitor has been at fault. Since it appears the contract specified a 10% deposit, he should not have exchanged on your behalf if he had not been given that 10% by you, since he could not pass on that money to the seller's solicitor.

so you can certainly have a go at your solicitor on Monday.

I also suspect, like david above, you are not looking at the contract you signed. As you can see from the specimin contract he linked to, there is a space on there to enter the exact deposit amount.

After signing the contract, you did make and keep, a copy, yes?

Bumblebee2128

HE didn't ask that. HE said the 'deposit was short by a lot'. The copy of the contract I signed is blank where it says deposit.

Thrugelmir

Bumblebee2128 wrote: »

HE didn't ask that. HE said the 'deposit was short by a lot'. The copy of the contract I signed is blank where it says deposit.

Tell him to speak to his solicitor.