Exchange deposit

[lemonyellows]

Can anyone tell me anything about the exchange deposit, as just seeing this in conveyancing form we need to complete?

We are buying and selling. We are buying with equity and top up mortgage, so are they really expecting a cash deposit at exchange? They haven't explained at all. I will obviously ask the solicitor but thought I get the experience of those on here.

Thanks!!

Usually the deposit at the bottom of the chain passes up by agreement, unless someone is being difficult.

I had the same concern about using equity as deposit. So it's fine and done a lot. However if after exchange you pull out the deposit still needs to be paid.

It usually comes up the chain but doesn't always happen and depending on the price of each property, may not be enough.

We bought a newbuild where exchange took place some 10-months before completion.
The sale of our old house was meant to be chain free but at the last minute our lying EA threw that one into the mix (which delayed things by a couple of weeks).
We knew that their 10% deposit was not going to cover our 10% so we were ready to pay the difference but on the day of exchange no money came up so our solicitor suggested that rather than tracing that money, we just paid the 10% ourselves. Meant a trip into the bank to arrange the transfer but it worked fine and the "missing" deposit made an appearance on completion.

Thanks. We don't have 10% cash available so hopefully they will accept from the chain.

Neither did we. It's why a chain all exchanges at the same time to prevent someone pulling out and another defaulting and owing the deposit.

Very unlikely you would be asked to find a deposit.
The FTB at the bottom of the chain normally has to find a 10% deposit which then moves up the chain ( worth less than 10% as it moves up the chain of course but everyone normally is happy to agree to that system).

Yes, that is what normally happens.

Ours was unusual (but not unknown apparently) and the solicitor said that in our case, it would be easier for us to pay the deposit rather than them trying to get the money released.
Our developer was really pushing so we went for the quickest and easiest option.

We had a difficult seller (trying to delay things) so ended up having to make up the difference in cash between our buyer's deposit and the full 10% on the place we were buying. It was proper small change down the back of the sofa time trying to get it together.