House Sales and Deposits

[lenjames]

When a price is agreed between the prospective purchaser and the vendor of a resale house what is the system of payment of deposit/s leading up to the final payment of the total price please. What percentage/s, under what conditions are they refundable or not and, does the vendor or his/her lawyer hold the deposit/s in they're account, obviously accruing interest?

[dawncl]

We paid 1000 to take the house off the market and get the deeds for my solicitor to check.

then within 30 days 10%

Final payment was made by us at the notery
[where the envelopes change hands]

Alll moneys amounted to the orriganal asking price.

On top of this you add between 8 to 10% for the various fees and taxes.

[melandsharon]

We gave a ten percent deposit, if the vendor with drew he had to give us twice the amount back or it could have been three times, the balance was paid when we took possession at the notaries, we handed over money cheques and they gave us the keys all very civilized,

[pete_l]

if the vendor with drew he had to give us twice the amount back or it could have been three times

When I was looking, the estate agents (well, some of them) made a big
thing about this "giving twice the amount back". My understanding is that
if for example you pay a 10k deposit and the vendor pulls out, they pay
you 20k. However, since they have pocketed the 10k you gave them in
the first place, they're really only paying a penalty of one times
the deposit.

Is this how other people have read it?

Pete[/b]

[Beachcomber]

Yes, in just the same way that you will only lose one times the deposit if you pull out.

This is standard procedure but it should also be made quite clear in the contract.

[Alan-LaCala]

Is this how other people have read it?

Yes that is it exactly. The penalty for failure to complete is the same for the seller and buyer.

Alan