The deposit

Property solicitors refer to the deposit as a part payment of the purchase price, paid on exchange of contracts.  It acts as a forfeitable bond.  This means that if you don’t complete (move) on the agreed date, you can lose it.

The deposit is traditionally stated at 10% of the purchase price, though a 5% deposit is often accepted.  If you only pay a 5% deposit and then default, the balance of 5% immediately becomes payable.  If you are buying and selling you will need to fund the difference between a 5% deposit received and a 5% deposit payable on your purchase.

 
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You can access any of our conveyancing lawyers at any of our offices spread throughout Surrey, Hampshire and Greater London including Kingston upon Thames, Bordon, Cheam, Canary Wharf, Leatherhead, Raynes Park, Surbiton, Tolworth or Walton on Thames.