Do we still need a deposit to exchange?
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Anne from Belfast
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Conveyancing questions and answers
Question
We hope to move house in 2017. We will have more than enough equity in our current house to buy outright the new property (once it's sold). However, would we still need a deposit to exchange if we plan to be mortgage-free?
Answer
A deposit should not be required in this circumstance. A deposit is only required when specifically requested by the vendor and this would usually only be the case of a builder/developer selling a new build property. In this case the deposit would usually be a nominal amount. This would be a legal deposit.
An equity deposit is basically the difference in the price of the property being purchased and the amount being borrowed (the equity) and is rarely required to be paid prior to completion.
Michelle King, McLernon Moynagh Solicitors
Michelle King
McLernon Moynagh Solicitors
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Hannah, 09 April 2017