Cash buyer deposit or no?

allylou84

Registered User
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Hypothetical question as our house is not on the market yet but if you are selling your home to a cash buyer what happens at the contract signing stage in regards to their deposit? Since they are not bound by mortgage rules ie. 10% or 20% deposit what is normally paid, is it the full amount minus booking deposit or do we set a deposit amount for them?
Thanks
 
The contract deposit has absolutely nothing to do with whether there's a mortgage or not.
10% is standard on signing of contract, but it can be agreed between the parties.
 
The contract deposit has absolutely nothing to do with whether there's a mortgage or not.
10% is standard on signing of contract, but it can be agreed between the parties.
Thanks for clearing that up, on the other side would a new build purchase from plans also be just a 10% deposit at contract stage if you are a second time buyer or cash buyer?
 
Yes, again nothing to do with mortgage or whether you're first time buyer, etc.

Just remember, you don't get the 10% until closing date. It's held in trust by your solicitor. So it's not possible for you to use the 10% deposit from sale to pay the deposit on purchase.
 
Yes, again nothing to do with mortgage or whether you're first time buyer, etc.

Just remember, you don't get the 10% until closing date. It's held in trust by your solicitor. So it's not possible for you to use the 10% deposit from sale to pay the deposit on purchase.
Thanks for that as you can see we will be in the headwrecking process in the next few months of selling our home and buying a new build and the dilemma involved in the gap between closing on old house and moving into new one, at least now we know our house needs to be a completed sale to start on the next. Thanks again
 
It's a difficult one to negotiate.
2 separate friends did it recently.
First sold their house to an investor, and agreed they would rent it back from him so didn't need to move until they closed purchase.
Another just negotiated a lower booking deposit in house they were buying, but that really depends on the demand for the houses.
 
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