Multiple Booking Deposits on New Builds

gandalfio

Hi,

Is it possible to pay booking deposits on more than one property in advance of them being completed?

For example, there are three developments we're interested in.
A booking deposit is being asked for on one of them this week.
However, the developments we would prefer to live in aren't taking booking deposits until August.
Are there any rules against putting down booking deposits on more than one property?

We would hate to decline putting a deposit on the house this week, only to then miss out on our preferred home in August as well. We see paying the deposit on the home this week as something to fall back on should things fall through on the other two properties.

Any feedback much appreciated.

Creamy Goodness

no rules against it but solicitors info is required by estate agent typically within 3 days of putting down booking deposit so that contracts are sent out etc. and generally they have a clause that states contracts should be signed by both parties within 28 days. you'll also have your bank issue loan offer on a specific property address.

you'll be creating a headache for yourself and your solicitor as there's a lot of work you just don't see that solicitors do that are specific to the address of the property.

gandalfio

Creamy Goodness wrote: »

no rules against it but solicitors info is required by estate agent typically within 3 days of putting down booking deposit so that contracts are sent out etc. and generally they have a clause that states contracts should be signed by both parties within 28 days. you'll also have your bank issue loan offer on a specific property address.

you'll be creating a headache for yourself and your solicitor as there's a lot of work you just don't see that solicitors do that are specific to the address of the property.

Thanks. Does this also apply to deposits for properties that are off plans?

Thoie

As creamy_goodness said, it depends on how efficient the developer's solicitors are.

I put a booking deposit down on a place off plans, and was told the contracts would be out "in a few weeks". That booking deposit was fully refundable up to the time I signed the contracts, and an extra (bigger deposit) was due on signing.
As it happens, it was about 4 months before they sent them out. However it's a gamble - they could have the contracts ready next week, at which point your first preference won't be on sale yet before you have to either sign or pull out.

If you are going down that route, warn your solicitor that's what you're planning, so they don't waste time doing all the work on the first set unnecessarily.

Creamy Goodness

gandalfio wrote: »

Thanks. Does this also apply to deposits for properties that are off plans?

yup I bought off plans in 2018 and these were the timelines I was dealing with.

I had contract signed and turned the key to the house in < 6 months though so they were quite efficient in the turnaround. I don't go buying multiple houses so not sure if this is/was the norm or an exceptional case :pac:

The_Conductor

Until such time as you sign the contracts- the deposit is fully refundable.
As the others have rightly pointed out, you could very well be creating needless work for your solicitor. I'd strongly advise keeping them fully appraised of what you're doing.