deposit - urgent

[surfergirl]

Hello,
If a person is selling their house, in order to buy a new house, agrees a sale on their cuirrent house, puts a deposit down on a new house, but then the sale of the current house falls through, can they get out of the purchase of the new house? Will they lose the deposit?

 

[doberden]

Normally with a house purchase you pay a full refundable booking deposit and then after this you pay 10% on signing of the contract. Once you sign the contract the 10% is not refundable. However, a booking deposit is fully refundable.

 

[Persius]

Think it depends whether the house you are buying is a new build or not.
If you're buying second hand by private treaty, then doberden's comments apply. However if you're buying a new build directly from a developer, then the deposit is most likely not refundable. You'd have to check your contract with the developer.

 

[Bronte]

If you signed a full contract and not just a booking deposit you probably put a clause in subject to mortgage approval. I assume if you don't sell your house you won't be entitled to mortgage approval for a 2nd house (in addition to the 1st house) so you can get out of the contract that way.

 

[mcloughlin36]

Hello,
If a person is selling their house, in order to buy a new house, agrees a sale on their cuirrent house, puts a deposit down on a new house, but then the sale of the current house falls through, can they get out of the purchase of the new house? Will they lose the deposit?

You wont loose your deposit that is refundable. Only when you are giving your 10% to the builder are you at risk of loosing this (thats how they make there money).

 

[abi2007]

You solicitor shouldn't send your signed contracts off for the house you plan on buying till you get the signed contracts in off the people buying your house. Therefore your deposit should be fully refundable. Something similar happened to me.