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Who holds the deposit money between exchange and completion

3 replies

NoseyNooNoo · 14/07/2010 16:55

We may be buying a house and vendor wants a 2 month gap between exchange and completion.

Who will hold the 10% deposit during this time (and earn the interest). In the account is currently sat in it would earn £600 during that time. Who gets to pocket that?

If it's not us can we do anything about it?

OP posts:
suitejudyblue · 14/07/2010 16:59

You would pay the deposit to your solicitor who is obliged to pay you interest.
If its a large amount and you know exactly when the completion will be make sure that the solicitor gets the best rate of interest that's available. If you know of a particularly good account suggest it to them as they may bank at the same place (they won't be able to use a new bank just for you) but definitely make sure you know what they are doing with your money.

NoseyNooNoo · 14/07/2010 17:01

Thank you for that.

OP posts:
ajandjjmum · 14/07/2010 17:03

Isn't it held in the Solicitor's client account - which doesn't belong to the Solicitor, so if they get into difficulty, the money is ring-fenced?

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