What is a pre contract deposit?

[ByJadeUser]

So my son and his GF has got a sale agree'd to a house but his estate agent is asking for a pre contract deposit of 3 grand. My son said he's going to talk to his mortgage advisor about it but I've never heard of pre contract deposits

Are they buying or selling the house in question? Your post isn’t clear.

edit: sorry, ignore, missed the part about the mortgage advisor

Is it a new build?

If not then no this is not a thing and he should refuse

Seriously why are you posting multiple threads about this? They're adults.

I was asked for this once by an estate agent, and asked what it was for, he said 'to show commitment'. I asked if it was returned if I didn't go through with the purchase and he said yes. So I said it doesn't commit anyone then. He wanted £1,000 (40 years ago!) and in the end I deposited £100.

I didn't think they were allowed to do this now.

@blackcatsblackcats no its not a new build

Usually Estate Agents ask for this deposit, then they take the house off the market. They don’t have to pay it but the EA can continue showing people around.

Get legal advice. They are legit but usually because the estate agent isn’t confident in the buyer having the money. If they have a good income and the mortgage is just a formality it shouldn’t be required and I’d refuse if only because it can lock you into a potentially protracted buying process if the seller has any delays

@Mindymomo so if my son doesnt want to pay the deposite then there is a chance that they can be gazumped considering the property is still on the market even tho my son got his offer accepted?

But then wouldnt that make the Estate agent look bad and untrustworthy by allowing guzumping? Also, say if someone comes in with a higher offer and they accept that then that person with the higher offer might not be able to compete it quicker because they might be waiting to sell thier house. Where as my son and his GF are not apart of a chain as they aint waiting to sell a house.

Yes, that could very well happen and if EA agent receives a better offer then they are obliged to tell the seller, so they can decide whether or not to accept the offer.