Selling and buying - balance of 10%

L

luckystar

Registered User
Messages
310
Friend selling home and buying a new build. Plenty of capital in the house and mortgage approval for balance etc. All being sale agreed at moment. No contracts as yet
Now, her solicitor has questioned where she will get the balance of the 10% for purchase of new house.
I naively thought she could use the 10% being give to her when the purchaser signs for her current home but solicitor says no...
 
Thats correct. Solicitor holds funds in trust.
They can negotiate lower deposit before signing contract, or else they'll have to borrow somewhere.
 
"but solicitor says no..."

Solicitor is correct - that 10% is being held until the sale completes- solicitor holds as stakeholder.

Do people not think this through/ ask questions etc.,etc before blithely heading off to buy a property?

mf
 
mf1 said:
Do people not think this through/ ask questions etc.,etc before blithely heading off to buy a property?
Click to expand...
Of course they do. They ask their mate at work, or one of their friends down the pub, who tells them it'll all be grand (sure they heard if someone else who did it once), so they're good to go on signing a binding contract for half a million.
What more thinking through does it need?

On a serious note though, this buying and selling thing is a major headache. Not something I'd like to ever do again!
 
Thanks guys, well you learn something new every day! It really is a minefield.
I suppose it's good to figure all of these things out before contracts start being issued etc. How likely though that the builder solicitor would take less than 10%?
 
Thanks redonion, biggish development. Very expensive houses so I imagine most are selling houses to buy these. Only half reserved. Won't be completed until summer.
Appreciate the replies. Many thanks
 
The deposit should be straight forward to negotiate.
If not, borrow, or equity release from existing house to get it through.

But there is a 'subject to mortgage' clause that developers try to leave out. That's the important one in case sale falls through on their own house.
 
You must log in or register to reply here.
Back
Top