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Penalised for withdrawing from sale prior to exchange

Hi all

An odd one here - have just accepted an offer from an individual who has a FTB purchasing their home. They’ve said that either they or their buyer will have to pay a penalty if either withdraws from that agreement. 

I know this isn’t common - is it a new EA tactic?

Thanks in advance 
2006 LBM £28,000+ in debt.
2021 mortgage and debt free, working part time and living the dream

Comments

  • eddddy
    eddddy Posts: 16,124
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    It sounds like a pre-contract deposit agreement.

    They're sometimes pushed by estate agents - and sometimes pushed from elsewhere.  They're sometimes very dodgy, and they're sometimes less dodgy.


    In my opinion, they're extremely messy, and tend to cause as many problems as they solve.

    If you google 'pre-contract deposit', you'll find lots of discussion about it.



  • FreeBear
    FreeBear Posts: 14,251
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    MMoA ?
    That either your buyer or the FTB below them might be subject to a penalty clause is not your problem :*
    Her courage will change the world.

    Treasure the moments that you have. Savour them for as long as you can for they will never come back again.
  • jonnydeppiwish!
    jonnydeppiwish! Posts: 1,107
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    It’s not our side, it’s 2 lower down in the chain and I believe it’s a normal sale type rather than modern method.

    thanks for the input though, definitely interesting reading!
    2006 LBM £28,000+ in debt.
    2021 mortgage and debt free, working part time and living the dream
  • NameUnavailable
    NameUnavailable Posts: 2,779
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    It seems a practice that some agents are adopting to offer lower or no selling fees and taking a 'deposit' from the buyers instead.
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