Deposit

Deposit - the standard contract terms which all solicitors use require the deposit to be 10% of the purchase price.  If you do not have 10% available, please tell us as soon as possible, so we can try to negotiate a reduced amount with the seller’s solicitor.

What is the purpose of the deposit? The deposit protects the seller against the risk of you changing your mind and not purchasing the property.  If this happens then the seller can keep the deposit.  If a reduced deposit has been paid, then the seller will be able to claim against you for the difference.  In addition, the seller’s claim can include any other losses suffered if the property is sold at a lower price.

When is it paid? The deposit is paid to the seller’s solicitor following exchange of contracts.  You need to pay it to us five days before exchange of contracts to allow time for the cheque to clear.  Your cheque for the deposit should be made payable to Tozers LLP.