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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3653
Experience:  Solicitors 2 years plus PQE
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I have been approached by a company named Murdoch and Chase(08541058,

Resolved Question:

I have been approached by a company named Murdoch and Chase(08541058, incorporated May 2013, one director) offering to buy my Dysprosium rare earth metal which I hold in a bonded warehouse in Rotterdam. They apparently have a corporate customer (military contractor) who wishes to buy 10 tonnes of this metal and are willing to pay Murdoch and Chase a 4% "finder" fee for a fast transaction by 28th Dec 2013.
They are offering to buy my metal at a healthy profit for me but they want to put 10% of the sale value into a "deposit" account and this will be refunded in full if the overall transaction is successful.
What is the purpose of this deposit? If the deal did not conclude successfully would it be legal for them to retain my deposit (value £1800)

John Birks
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you for your question and welcome.

My name is XXXXX XXXXX I will assist you.

Have they asked where they want you make this deposit? i.e in a solicitors account?

Kind regards

AJ
Customer: replied 3 years ago.

I am waiting on contract documents which will explain exactly where they want the money paid into. However, on the phone they explained that both they (Murdoch and Case Ltd) and myself would deposit a refundable 10% (20%% total) into an "independent subsidiary" account. (Not a solicitor or escrow)

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

As this is unsolicited I would be highly cautious.

Consider the following:
1. If it is not a solicitor then the Independent solicitor should be an organisation that is regulated under the FCA to hold client money;
2. You are not the purchaser, if anything before I even consider this then you should ask the purchaser for proof of funds from a reputable bank or solicitor;
3. The deposit should refundable regardless of whether the transaction completes and your part of the deposit should not be used to calculate the final purchase price;
4. Ask Murdoch and Case Limited to pay this money if they want their commission that badly.

I look forward to hearing from you.

Kind regards

AJ
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