Buyers Deposit

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    • #54656
      Anonymous
      Participant

      Hi,

      What documentation/contract is usually in place when a buyer lodges the 10% deposit with the seller. At this stage is it the private sales contract or something that is a lot less formal?

      If less formal and simply an acknowledgment of a deposit, how are constraints such as timescales stipultated. Logically if you are depositing a large sum then you would want the full terms of the sale stipulated and hence it is my understanding this is done via the private sales contract.

      Is this correct? It’s the private sales contract that is signed when the deposit is received?

      Thanks
      JP1

    • #89505
      Inez
      Participant

      Yes. And you stipulate, by agreement, how long thereafter until completion, if they are getting finance then 45 days at the moment is the norm – used to be 30 days but with the banks being as slow as they are…..!

      Ensure you are not undertaking anything else and the simpler the clauses the better.

      For them to sign and pay this, they should have undertaken their due diligence and checked the nota simple at the registry, therefore no reason for them to pull out

      Good luck!

    • #89305
      Inez
      Participant

      Yes. And you stipulate, by agreement, how long thereafter until completion, if they are getting finance then 45 days at the moment is the norm – used to be 30 days but with the banks being as slow as they are…..!

      Ensure you are not undertaking anything else and the simpler the clauses the better.

      For them to sign and pay this, they should have undertaken their due diligence and checked the nota simple at the registry, therefore no reason for them to pull out

      Good luck!

    • #89506
      Anonymous
      Participant

      Hi Inez,

      Thanks, I feel I am slowly becomming an expert!

    • #89306
      Anonymous
      Participant

      Hi Inez,

      Thanks, I feel I am slowly becomming an expert!

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