10% Deposit for property

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marios
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10% Deposit for property

Postby marios » Mon Feb 03, 2020 9:12 am

Hi, We have finally sold our house here in Spain :D via an estate agent and was wondering what is the norm for who holds the 10% deposit that will be paid and also what happens to that deposit if the seller backs out thanks.

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costakid
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Re: 10% Deposit for property

Postby costakid » Mon Feb 03, 2020 9:30 am

If the seller backs out you get to keep the 10% deposit. If you back out you return the deposit and the same amount again as compensation. Basically whoever backs out gets 10% for their trouble.
Not sure who looks after the deposit as it has been years since we bought but I guess its the agent as lots of buyers in Spain dont bother with a solicitor.

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Re: 10% Deposit for property

Postby marios » Mon Feb 03, 2020 9:36 am

Yes I know that bit thanks, its was the holding of the deposit Info we needed.

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Devils Advocate
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Re: 10% Deposit for property

Postby Devils Advocate » Mon Feb 03, 2020 10:16 am

The buyers lawyer received their 10% payment when we sold in August. And it was paid over to us by them fairly quickly and a month or so before completion.
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marios
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Re: 10% Deposit for property

Postby marios » Mon Feb 03, 2020 10:26 am

Don't follow Devils, do you mean sellers Lawyer received 10% ??, also I am asking on buyer default what happens to that 10% how or who is it paid to.

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peteroldracer
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Re: 10% Deposit for property

Postby peteroldracer » Mon Feb 03, 2020 10:33 am

Devils Advocate wrote:The buyers lawyer received their 10% payment when we sold in August. And it was paid over to us by them fairly quickly and a month or so before completion.
Translation possibly...The buyers paid the 10% deposit to their lawyers when we sold our house in August, and those lawyers paid it over to us fairly quickly and a month before completion" ?
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marios
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Re: 10% Deposit for property

Postby marios » Mon Feb 03, 2020 10:38 am

Ah this bit more complicated as they have a one of their properties to sell so 10% deposit in 2 weeks but sale could take up to 6 months and possible 3 month extension but will pay further 10,000 if extn, so the deposit will be held for some time so I am saying where legally should it be held?

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Devils Advocate
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Re: 10% Deposit for property

Postby Devils Advocate » Mon Feb 03, 2020 10:47 am

Sorry guys only just got up :mrgreen: Thanks for the translation Peter :mrgreen:

I have just opened our currency direct account to view exactly what we received.

We received an exact 10% of the sale price, sent by the buyers lawyer to our account 2 weeks after they'd paid the 3% holding fee to the agents.

We never saw any of the 3% as it was held back in lieu of settling their fee.

But yes, their lawyer with his name on it sent an exact 10% of the house sale figure to our account very promptly, as the buyers in this case were desperate to move in.
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marios
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Re: 10% Deposit for property

Postby marios » Mon Feb 03, 2020 10:52 am

Yes but did you use an estate agent and ours is different as it could be held for a long time, I would say it wont get paid to me because of this so legally what is the procedure.

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Enrique
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Re: 10% Deposit for property

Postby Enrique » Mon Feb 03, 2020 11:05 am

Hi Marios,
Sounds like you may need an Escrow Account set up................

https://www.escrow.com/what-is-escrow
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Devils Advocate
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Re: 10% Deposit for property

Postby Devils Advocate » Mon Feb 03, 2020 11:07 am

Yes Marios we used an estate agent.
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Re: 10% Deposit for property

Postby Free at Last » Mon Feb 03, 2020 11:09 am

My experience when selling a house was the same as DA's - the buyers paid the 10% deposit to their lawyer who transferred it to me pretty much immediately. I did the same thing when I bought my new property a few months later. Both transactions involved estate agents. My buyers wanted completion within 3 weeks, but I don't see why the fact that your buyers will not be in a position to complete for several months should make any difference. In fact in my opinion it is all the more reason for the 10% to be paid to you to demonstrate that they are seriously committed to the purchase, otherwise you could potentially be turning away another buyer during that period only to have the original buyer drop out if they haven't sold their other property in time, and if they don't stand to lose their 10% deposit you would have no redress. If it was held by their lawyer, what guarantee would you have that they would actually hand it over if the purchase fell through?

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Re: 10% Deposit for property

Postby Devils Advocate » Mon Feb 03, 2020 11:12 am

I'm still not clear why you may not receive your 10% deposit for months. If they've said they want the house and have paid the 3% to agents they are duty bound to have the funds/means to pay the 10% deposit shortly after. I still may be missing something though so may need a translator again!!
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Enrique
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Re: 10% Deposit for property

Postby Enrique » Mon Feb 03, 2020 11:13 am

Hi D.A,
You're probable only missing your first morning's coffee.............. :D
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Devils Advocate
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Re: 10% Deposit for property

Postby Devils Advocate » Mon Feb 03, 2020 11:16 am

Free at Last wrote: In fact in my opinion it is all the more reason for the 10% to be paid to you to demonstrate that they are seriously committed to the purchase, otherwise you could potentially be turning away another buyer during that period only to have the original buyer drop out if they haven't sold their other property in time, and if they don't stand to lose their 10% deposit you would have no redress. If it was held by their lawyer, what guarantee would you have that they would actually hand it over if the purchase fell through?
Absolutely nailed on FAL. Unless this is just a provisional contract?
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marios
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Re: 10% Deposit for property

Postby marios » Mon Feb 03, 2020 11:33 am

What do you mean by Unless this is just a provisional contract?, it would be the 10% deposit contract with the clauses written in about the time limits ie completion by July if not not further 3 month extn and payment of further 10,000 Euros.

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Devils Advocate
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Re: 10% Deposit for property

Postby Devils Advocate » Mon Feb 03, 2020 11:41 am

Enrique wrote:Hi D.A,
You're probable only missing your first morning's coffee.............. :D
I've just had it so I'm firing on all cylinders now :mrgreen:
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Devils Advocate
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Re: 10% Deposit for property

Postby Devils Advocate » Mon Feb 03, 2020 11:45 am

marios wrote:What do you mean by Unless this is just a provisional contract?, it would be the 10% deposit contract with the clauses written in about the time limits ie completion by July if not not further 3 month extn and payment of further 10,000 Euros.
Marios by a provisional contract I meant something along the lines of........they want your house so they pay you the 10% now, right now for you to keep it off the market/hold it for them in a set time limit you both agree to. If they have then not the means to pay at the end of that time limit you have the 10% for your troubles and you remarket it.
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marios
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Re: 10% Deposit for property

Postby marios » Mon Feb 03, 2020 11:57 am

Yes then provisional correct.

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Re: 10% Deposit for property

Postby Devils Advocate » Mon Feb 03, 2020 11:59 am

So the 10% should be with you this week or next then? Hopefully it is.
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