for personal reasons i have sold my house so i am looking to rent a bungalow but my question is. ... If i put down a deposit to hold a property could my buyer pull out and leave us losing our deposit. thankyou all in advance.
2006-08-22 07:24:45 · 11 answers · asked by tom9437 2 in Business & Finance ➔ Renting & Real Estate
It appears that you have may have an accepted offer on your property that you are trying to sell. If that is the case there may be some subject clauses on the contract that would allow the buyer to walk away from the purchase.
If your sale is firm, binding and without any subject clauses, it is very rare that a transaction does not complete. But I suppose a buyer could still walk from the purchase, but leaving you with a number of legal remedies available to yourself.
It is a fairly safe situation if the sale of your property is subject free, one that most people selling and either renting or buying something else face all the time, and in 25 years I have never had it go wrong, so don't worry as long as your sale is subject free.
Good Luck and Happy moving
2006-08-22 07:46:54 · answer #1 · answered by peterpfann 3 · 2⤊ 0⤋
It depends on the real estate laws at your local area. Difficult to tell based on the information you gave. However, the following may generally apply:
If you are holding a good faith deposit for the sales of your property, you may have an advantage if the buyer pulls out. At least you have control of his money. Now depending on how the sales contract is written, you may or may not be able to keep that deposit. You may also be able to sue for damagees if the buyer is at fault provided that the contracts says you have that right. You should seek legal assistance if that happens.
Now for the reality check.. getting into a contract dispute and getting it resolved in court cost money and the funds as well as you property may be tied up for months if not for years. By the mean time your new landlord may not be so sympathetic. If I were you, I would make your rental deposit contingent on the closing of your sales. If it does not go through, you get your rent deposit back. However, if your new landlord refuses, then you may have a tough decision to make. You may have to sell the property again before you can move on.
2006-08-22 08:27:02 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you pull out of the rental, you will lose your deposit, however, you only have to pay a "holding deposit" which will not be the full deposit on the property until you begin the tenancy. The holding deposit you pay varies from agent to agent but is often in the region of £200 - £400. In the grand scheme of buying and selling houses, this is not too much to worry about so you should be fine. Remember that holding deposits are also negotiable so speak to you agent and try to lower what you have to pay upfront.
2006-08-22 11:43:07 · answer #3 · answered by Lewiy 3 · 0⤊ 0⤋
Prior to exchange of contracts, your buyer is perfectly entitled to pull out of the purchase of your property, and you would not be entitled to claim any of your money back. Personally, I would not put any deposit down on anything until your buyer starts shelling their own money out on the survey + legal costs for buying your property.
Only when contracts have been exchanged, then the sale becomes legally binding.
2006-08-24 08:11:29 · answer #4 · answered by nemesis 5 · 0⤊ 0⤋
Yes, your buyer could pull out once you've put down a deposit but you should not have to lose your deposit if the buyer pulls out. Your local citizens advice bureau or your local trading standards should be able to give better more relevant advice.
2006-08-22 11:05:17 · answer #5 · answered by scallywag 4 · 0⤊ 0⤋
The simple answer is "yes." Of course if the buyer fails to close without good cause under the contract, you will be entitled to keep his deposit so will be able to offset the loss of yours. You can try to make your deposit contingent upon closing the sale of your house, but few landlords will agree to that.
2006-08-22 07:51:39 · answer #6 · answered by Anonymous · 0⤊ 0⤋
The buyer/seller is legally entitled to pull out of any sale/purchase up until exchange of contracts.Except in scotland where the rules are a bit different.
2006-08-22 23:54:22 · answer #7 · answered by si 2 · 0⤊ 0⤋
Until you're at the title company, have signed all the documents, and have your check in hand, anything can happen. Your home is currently statused at "pending sale."
Speak with your real estate agent and ask them if they can find out more info regarding your buyer's financing. Be very weary if they are taking out a 0% down loan because this means they have no extra money to work with.
2006-08-22 08:10:32 · answer #8 · answered by KL 5 · 0⤊ 0⤋
The answer to your question lies within the written agreement that you strike with the seller and with the buyer. You don't need to be fancy when writing a meeting of the minds. In your own words or with the assistance of the realtor or a lawyer simply write that your agreements are subject to certain things happening and if they don't happen you get your bucks back.
2006-08-22 07:36:28 · answer #9 · answered by newmexicorealestateforms 6 · 0⤊ 0⤋
there seems to be a lot of our american friends on here and if what they are saying in general i would hate to have a property for sale in usa its cat and mouse
2006-08-23 05:41:57 · answer #10 · answered by srracvuee 7 · 0⤊ 0⤋