Deposit for purchasing property

Swatch

Registered User
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If anyone could enlighten me as to the steps that take place from when a buyer agrees to the sale price of land until the sale is finalised, I'd really appreciate it.
Is it normal for the buyer to give the estate agent a cheque for the deposit amount - and then it is in the hands of the estate agent until the sale goes through?
 
Hi Swatch, I'm not sure if it's much different with buying land, but I suppose not hugely from buying a house. You do give the EA the booking deposit, in return you should get a receipt saying something like subject to contracts (in case either party pulls out you get it back). The EA holds it and eventually forwards it onto the vendor (prob when the contracts are signed and they get their commission from the vendor). Next you have to give the EA your solicitor's details. He will pass it on to the vendor's solicitor. Their solicitor will forward the contracts to your solicitor, who then has about 3 weeks or so time to review it and do searches and stuff until it has to be returned signed. In the meantime you need to get your mortgage sorted, get a valuation done for the bank (not sure about land) and get life and house insurance (latter obviously not required for land). When you sign contracts you have to hand over about 10% contract deposit, usually sign off the mortgage and agree on a closing date. That's about it I think. Lots of waiting and lots of patience required.... Maybe people having bought land have some more wisdom at hand...
 
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