Preliminary deposit

glothy

Hi all. Have been asked to put down a 1k deposit for a house I'm looking to buy to make sure I don't change my mind after solicitors are instructed e.t.c. I did a quick google on this and the last thread I can find on it is pretty old. But apparently it is something that people do occasionally. Never heard of it before personally. I know they have had 2 or 3 buyers change their mind half way into the process and don't want to lose any more money. Just wondering if anyone has experience of this and if there's anything I should be wary of?

RHemmings

Is this deposit going to form part of your purchase price should you complete? And, will it be refunded if you (or the seller) pulls out? 

glothy

It would be refunded if they pull out, not if I pull out, and yes it would form part of the purchase price. 

user1977

Are they going to give you a similar deposit to protect you from them pulling out...

(rhetorical question - of course they aren't. Which is why you shouldn't do it either. It isn't normal practice and is probably just the estate agents looking to improve their cashflow - there are plenty of reasonable reasons why you might pull out but would never see your deposit again)

anselld

Absolutely not normal.   Make an offer in writing, subject to contract, in the normal way and insist it is passed on to the vendors.... or just run away.

theartfullodger

I have provided £5k deposit "as a gesture of goodwill". Showing I'm serious.

Key issue is how it is described (in writing) # eg returnable or not, depending on what.

I've met some very NOT normal buyers, sellers, agents and solicitors.  

Where does anyone think "normal for house buying " is defined? 

eddddy

Agreements like this are generally so messy that they are more trouble than they are worth.

But ask why the other 2 buyers pulled out. Did they find out something about the property that put them off?

Did they each pay £1000 - which they lost? (i.e. Is this a bit of a scheme to earn £1000 from a string of buyers.)


If I was suspicious, I'd be tempted to ask by email, to try to reduce the risk of being fibbed to.

Albermarle

If you are keen not to lose the house then a possibility is to offer a smaller amount, like £250.
Shows willing, and if you lose it then not such a big issue. 

propertyrental

Albermarle said:

If you are keen not to lose the house then a possibility is to offer a smaller amount, like £250.
Shows willing, and if you lose it then not such a big issue. 

except that this sort of sharp practice should not be encouraged.

glothy

Thanks all. I'm thinking it's probably a bad idea so will decline to offer any money up front. Don't need the inconvenience really. House buying is stressful enough without this nonsense.