10% Deposit for property
10% Deposit for property
Hi, We have finally sold our house here in Spain 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.
Re: 10% Deposit for property
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.
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.
Re: 10% Deposit for property
Yes I know that bit thanks, its was the holding of the deposit Info we needed.
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Re: 10% Deposit for property
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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Re: 10% Deposit for property
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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Re: 10% Deposit for property
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" ?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.
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Re: 10% Deposit for property
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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Re: 10% Deposit for property
Sorry guys only just got up Thanks for the translation Peter
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.
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.
Property owner in Andalucia since 2002. How time flies.
Re: 10% Deposit for property
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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Re: 10% Deposit for property
Hi Marios,
Sounds like you may need an Escrow Account set up................
https://www.escrow.com/what-is-escrow
Sounds like you may need an Escrow Account set up................
https://www.escrow.com/what-is-escrow
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Re: 10% Deposit for property
Yes Marios we used an estate agent.
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Re: 10% Deposit for property
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
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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Re: 10% Deposit for property
Hi D.A,
You're probable only missing your first morning's coffee..............
You're probable only missing your first morning's coffee..............
All my best learning experiences start with a problem I need to solve.
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Re: 10% Deposit for property
Absolutely nailed on FAL. Unless this is just a provisional contract?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?
Property owner in Andalucia since 2002. How time flies.
Re: 10% Deposit for property
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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Re: 10% Deposit for property
I've just had it so I'm firing on all cylinders nowEnrique wrote:Hi D.A,
You're probable only missing your first morning's coffee..............
Property owner in Andalucia since 2002. How time flies.
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Re: 10% Deposit for property
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.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.
Property owner in Andalucia since 2002. How time flies.
Re: 10% Deposit for property
Yes then provisional correct.
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Re: 10% Deposit for property
So the 10% should be with you this week or next then? Hopefully it is.
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