Deposit on signing of contracts

[tvman]

I have received a letter from my solicitor that contracts have been received in respect of a house I'm buying and asking me to call in with a cheque for 10% of the purchase price (less booking deposit). I am financing the purchase using a 92% mortgage.

My question is: is a 10% deposit always required, even where the purchaser is putting in <10% ?

 

[mf1]

No, the parties can agree a lesser deposit.

Or you can pay the 10% and recover the 2% from the mortgage proceeds.

mf

 

[tvman]

thanks mf1, is the deposit amount stipulated in the contract? If so, I presume a fresh contract would need to issue?

 

[mf1]

thanks mf1, is the deposit amount stipulated in the contract? If so, I presume a fresh contract would need to issue?

No,not necessarily. The agreed deposit can be noted in the contract. And amendments made.

mf

 

[tvman]

thanks mf1