Deposit amount on contract

Welly2125

Hi, first time buyer here so feeling a little nervous about a potential error on my contract.
I am buying a house with a 5% deposit, however the vendors solicitor has sent a contract with a 10% deposit stated. My solicitor has stated that this is fine and they will strike this from the contract and hand write the correct amount after I have signed and returned.

Is this right? Can they do this? Worried it will go to exchange and I’ll be legally required to provide 10% which I do not have! 

ACG

When you exchange you are legally required to complete. I dont think they can stipulate where the money comes from as they would never know. 

You pay the money to your solicitor (along with the mortgage money if there is a mortgage), it all gets combined and sent over in one go to the sellers solicitor. 

Hoenir

10% is the standard term. As long as both parties agree the contract can be amended to anything. 

itsthelittlethings

I wouldn’t sign it until it’s corrected.

user1977

Welly2125 said:

Is this right? Can they do this?

They’ve literally just told you they can. You’re paying your solicitor to advise you, why do you not trust them?

Myci85

We just had the same thing, it's standard in the contract and they forgot to amend that part. As we wanted to get the contracts signed ASAP we went in to the solicitors office to sign and they altered the amount then. If you're worried about signing before it's changed, can you go in and sign in their offices? They can then witness your documents too save finding someone else to. 

Hoenir

itsthelittlethings said:

I wouldn’t sign it until it’s corrected.

Both solicitors hold signed drafts on file then amend them as necessary. Ready for exchange. 

Welly2125

Thanks everyone! Very helpful.

saajan_12

I'd clarify what the 10% refers to - if its the money you physically pay upon exchange OR the money you agree to pay if you fail to complete after exchange. 

Sometimes these can be different, eg if someone only has 5% of the cash from further down the chain, but they contractually agree that if anything goes wrong they will be liable for the rest of the 10% (and maybe the seller's costs if higher)