Is it unusual to exchange with a 5% deposit?

[CatAndHisKit]

I thought the standard was 10%. It would be a delayed completion, so possibly this is to protect the buyer more.

FYI the buyer has messed me around a bit but now says he does want to proceed subject to bank confirming the loan (so far it's in principle). So I'm now wary of anythng he says and does.

Firstly, how long woud the bank valuation take (I think it's a commercial mortgage in company name but not sure)?
An is 5% ok and not suspicious?

messed me around a bit is an understatement btw! We were supposed to complete Jan-Feb. He offered as a cash buyer originally.

What do you mean, it would be a delayed completion?

I mean a longer period between exchange and completion than the average - up to two months. Buyer is fine with that.

5% isn’t that unusual I think. It is presumably still a lot to lose if the buyer failed to complete, and they would still be legally liable for the other 5%.

2 months between exchange and completion: also fine.

Better to exchange on 5% and gave the contract in place than insist on 10% and not exchange until much closer to completion, because the deal is not secure until you have exchanged.

Ask your solicitor’s advice.

Yes, I'll go for it - olicitor says it's unusual but I als think that that's too much to lose for the buyer even at 5%.

I've done it. Not that unusual, but not common. Id the 5% a high enough number that your buyer will not want to lose it?

well I hope so, Midlife - it's over 10K - more to the point if it falls apart this is enough to cushion me for the delay in selling. I do hope you get instant access to it in the unlikely case of buyer not complting.

They can do 5% for exchange but still be liable for the remainder up to the typical 10% if they pull out. Get your solicitor to write it into the contract.

If you're sceptical I wouldn't accept 5% just in case. I'd do as pp said and get the solicitor to state in the contract that the deposit is 10%, but you're willing to accept 5% at exchange with the buyer liable for the further 5% if they default/ fail to complete.

Thanks for the advice re 10% in contract, Mind you I don't know how likely to get the extra 5K out of this very flakey (so far) buyer. He's an investor and knows all thetricks - but I'm sure je woulddnt want to lose 10K plus.

Well, as an investor he’s happier with his £10k in his bank account or whatever he is doing with it (he probably doesn’t want to liquidate it or borrow it) than in your solicitor’s client account.

well, he still needs to come up with over 10K for the 5%, Raining but yes, useful for him to keep the rest.
Anyway, it seems like there are no pitfalls wit this so it's fine.

The buyer would be liable for the remaining 5% if he defaults ........ but you should assume you will have zero chance of recovering that from him in practice.

Are you in a chain? If you are then I'd rally try to push for 10.

Bought my house now on a 5% deposit, no probs.

GU exactly - but as I wasn't giving him any momey, it's not a 5% loss to me, is it? I'll still be getting 5% for nothing so to speak.
I may be buying if I can find something with no chain ithin a week, a small chance.

FT did you pass that smaller deposit along the chain and they've agreed with no issues? I might still need to do that if I'm lucky to find something very fast (unlikely as I've ben looking a while but more coming onto market now).

Our buyer decided to tell us the day of exchange that he’d be paying only 5% deposit. He fucked us all up !
Reckons his solicitor knew but didn’t know why they hadn’t told us.
It’s not massively unusual but 10 is better