I offered asking price but the vendors now want more and a 10% non-refundable deposit. What should I do?

Q: I'm a cash buyer and have made an offer of thr asking price of £1m home.They have now come back asking for above asking price and a non-refundable deposit of £100k. What should I do?

 

Sounds like the seller still believes it’s a sellers’ market. In fairness, the market is so spotty at the moment that in their area, it may be. However I don’t have the details here to know whether the seller is being over optimistic in their demands.

Non refundable deposits are problematic and the terms of what is paid and under what circumstances should be drawn up carefully and by your lawyer. Otherwise you could end up losing your purchase and your money.

It’s odd that this seller should market the property at £1m and then insist on more. They don’t sound very reasonable to me. As part of the deposit arrangement you can specify that you and they are locked in to an agreement that ensures that you both complete and at a fixed price. Again, it’s essential that a lawyer handles the drafting.

Answered August 2017
Russell Quirk
eMoov

 

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