deposit for vendor

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avontuur

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hey everyone,
i'm still trying to buy a house! today we got a letter from our solicitor saying he requires 27,750 euro as a deposit for the vendor. This is all new to me and was never mentioned at any point. Is this in any way negotiable? is it just me but this house thing is complicated enough without all these hidden costs!
 
When you buy a house, you have to pay a booking deposit and then the remainder of the 10% deposit. It's not a hidden cost, it's put against the house price. If you are paying the full deposit (which sounds like the case), then this is part of the step where you get to binding contracts - you're signing soon, right?

The 10% deposit is usually not negotiable - but you'd have to have that in your pocket in any case before you got a mortgage.

Have a look here for the steps involved.
 
thanks for the response.
honestly it was the first i'd heard about it. paid a booking deposit of 4000euro to the EA. anyway i'll get over it.
 
The vendor does not get this deposit right now. It is held until closing and makes up part of the overall payment.
 
The vendor usually gets the 10% deposit (or what's remaining after the booking deposit) before completion. Once the deposit is paid and the contracts are signed (at which point it's binding), there's usually another period for title and other work before the whole thing is done and dusted and you get the keys.
 
hello again!
as usual things have taken an unexpected turn. I have decided to change my solicitor as i really feel uncomfortable with him. first example, the bank sent the mortgage pack to the wrong solicitor so i track it down and let him know whats happening. the bank tell me that he is not registered on their system so he would need to phone them directly to rectify the problem.

i passed this message on to my solicitor, he says that i'm the customer they should do as i tell them! I phone the bank they say "theres no way a member of the public can upload solicitors information on to their system"

I get pretty annoyed at this stage, i then query this 30,000 euro deposit, i tell him that 22,000 euro was 10% and thats what he was getting. He then tells me that if i wanted to negotiate the deposit fee that i should do so with the vendors solicitor. His next sentence amazed me " I'M NOT BEING PAID TO NEGOTIATE OR MAKE FOLLOW UP CALLS, I'M ONLY HERE TO MOVE MONEY AROUND"

I think this attitude is ridiculous! or am i expecting too much for a bit of customer service!

I also felt like he treated me like i'm really stupid and he wasn't at all helpful when i asked him questions. I found a new solicitor who i'm finding really helpful.
I phoned my old solicitor to tell him i'm not proceeding and i give no more info than that.

can he charge me for work he's already done? as far as i'm concerned he doesn't deserve a penny as i seem to have done most of it!

any advice?
 
avontuur said:
... can he charge me for work he's already done? ...
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yes - get a detailed bill and if you feel uncomfortable, move on.
avontuur said:
... i seem to have done most of it!..
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I recognise the feeling, but at the end of all the hassle its your home for life (hopefully) and just his job.

Sounds like the bank are being ultra cautious.

BTW if the house is priced at 220k, your contract deposit is usually 10% less the booking deposit (22k - 4k paid to EA = 18k)
 
thanks for the quick response.

i'll pay him if i have to even though he doesn't deserve it. Funny enough the first time i spoke to him on the phone i got this terrible gut feeling about him.
In future i'll go with my gut feeling. Honestly it was the most off putting experience i've had, i was on the verge of pulling out of sale!

buying a house can be a tough enough road for us first time buyers without having to deal with a jerk like him!
 
I think it unlikely that he'll charge you if contracts weren't even signed. Out of interest what sort of fee did he quote for the work?

In terms of the deposit you can ask your solicitor to suggest a reduced deposit rather than the full 10% if you like. The deposit is held by the vendor's solicitor until completion.
 
he was charging me 890+VAT+outlays. my own fault i guess for "going ryanair" i don't mind paying him for any paper correspondence but after that i'm not too inclined to part with much more! my new solicitor thinks i shouldn't pay him a penny
 
(as yet another solicitor) If that solicitor had already received contracts from vendor's solicitor and already the examined title - you may get a bill (you would from me), but if not, I wouldn't charge.

avontuur said:
Funny enough the first time i spoke to him on the phone i got this terrible gut feeling about him.
Click to expand...

Try get a referral from friends/family, then weigh this up with your gut feeling and the fees quoted. Buying a house is a big deal - A good relationship with your solicitor plays a huge part in the procedure running smoothly, and shouldn't be under estimated.

There are plenty of us good ones out there :) and happily the type you describe are the minority.
 
just out of interest juke, how much would you charge?
he sent me a bill today for 320 euro does that sound about right?
 
What percentage mortgage are you getting for this purchase? Did you subtract this from the price you agreed to pay for the house in order to work out how much of a deposit you would have to pay?
 
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