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Conveyancer holding onto contract deposit

  • 10-12-2018 6:05pm
    #1
    MJohnston
    Registered Users, Registered Users 2 Posts: 10,675 ✭✭✭✭


    Not looking for legal advice here, just wondering from people's experiences whether this is standard practice or varies from solicitor to solicitor?

    Basically we're about to sign contracts to sell our house, and trying to get to that same point with a house we want to buy. The equity from that selling contract deposit is necessary for us to be able to sign contracts for the house we're buying though.

    Our solicitor has said we can't use that money until the sale is fully closed, and I want to know whether this is "the way things are" as I've seen in other countries that the deposit can be passed on along the chain once received.


Comments

  • #2
    uck51js9zml2yt
    Closed Accounts Posts: 18,268 ✭✭✭✭uck51js9zml2yt


    He's right. The money isn't yours till the contracts are signed by both parties and the deal closed.


  • #3
    MJohnston
    Registered Users, Registered Users 2 Posts: 10,675 ✭✭✭✭MJohnston


    Lydia Putrid Mucous wrote: »
    He's right. The money isn't yours till the contracts are signed by both parties and the deal closed.

    Contracts signed and 'closed' aren't the same thing in house buying terms though - there's usually a few weeks at least between signing contracts (and contract deposit being received by my solicitor) and 'closing day' (and balance being received by my solicitor).

    I understand that the 'booking deposit' is refundable, but the 'contract deposit' is very much not. In other words, if the buyers pull out after signing contracts but before transferring the balance of the house value, they lose that contract deposit.


  • #4
    Moonjet
    Registered Users, Registered Users 2 Posts: 236 ✭✭Moonjet


    Have both you and the buyers of your property signed the contract ? Until then it's not a binding contract and the buyer's deposit is still refundable. Has the buyer's solicitor inserted a 'subject to finance' clause perhaps?


  • #5
    MJohnston
    Registered Users, Registered Users 2 Posts: 10,675 ✭✭✭✭MJohnston


    Moonjet wrote: »
    Have both you and the buyers of your property signed the contract ? Until then it's not a binding contract and the buyer's deposit is still refundable. Has the buyer's solicitor inserted a 'subject to finance' clause perhaps?

    If you read my original post I said that we were about to sign contracts, should be this week hopefully. I'm asking a hypothetical question about the state of affairs after contracts are signed. We don't know about any clauses like that yet.


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