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Joshua
Joshua, Lawyer
Category: Property Law
Satisfied Customers: 29201
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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When the purchaser pays A deposit on your property, should

Customer Question

When the purchaser pays A deposit on your property, should the convalescence solicitor keep the deposit in there bank account or should they give it to the seller to put into there account
JA: What steps have they taken so far? Have they prepared or filed any paperwork?
Customer: yes they are holding £14,000 deposit
JA: Where is the property located?
Customer: Liverpool
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: No
Submitted: 12 days ago.
Category: Property Law
Expert:  Joshua replied 12 days ago.

Hello and thank you for your question. My name is ***** ***** I will be very pleased to assist you. I'm a practising lawyer in England with over 15 years’ experience. Please be aware that although I will endeavour to reply to you promptly, I am also in full time private practice and so I may not be available to respond immediately and it may also take me a few minutes to prepare a reply. The site will notify you as soon as I respond. I look forward to working with you to answer your question fully.

  1. for the avoidance of doubt, may I confirm this is a property sale as opposed to a property rental please? I assume given the amount of deposit, it is the former?
  2. in relation to the deposit, is that the deposit given on exchange of contracts or is this a deposit given under a lockout agreement or option agreement giving the purchaser a period of exclusivity in which to proceed to exchange of contracts?
Customer: replied 12 days ago.
I told the property at auction and they gave my solicitor £14,000 deposit until completion, I want the doposit putting in to my bank account , should I be able to get the deposit from the solicitor to put into my account
Customer: replied 12 days ago.
I ment the purchaser paid the deposit to my solicitor and it’s in there account
Customer: replied 12 days ago.
Sorry I sold
Expert:  Joshua replied 12 days ago.

thank you. The issue you refer to is determined by the terms of the contract. Specifically, the contract will provide that the deposit is either paid to the seller's (ie. you) solicitor as "stakeholder" or as "agent".

the difference between the two is that if the deposit is held as stakeholder by the solicitor, then they cannot release it to you until completion. By contrast, if it is paid to the solicitors agent, then they must do with the deposit as you tell them which can include an instruction to pay it to you. The standard auction conditions provide that the deposit is to be paid to the seller's solicitor as stakeholder which is above, would mean that the solicitor cannot pay it to you until completion and as such, you would need to see whether the auction contract with varied the standard terms to include a provision that the deposit is to be paid as agent. This is not the norm but equally, it is not uncommon. If you do not have a copy of the auction contract, you can obtain a copy either from your solicitor or the auctioneer

Customer: replied 12 days ago.
Ok perfect thank you
Expert:  Joshua replied 12 days ago.

I'm glad the above answers all your questions. If there is anything else I can help with please reply back to me otherwise thank you very much for visiting JustAnswer and I hope we will see you again in the future.