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Discussion Starter · #1 ·
We have finally found a house we want to buy but haven't got ours on the market yet. The agent says we should pay a 10% deposit and the seller will give us 6 months to sell. If we haven't sold within that period we then pay another 10 % which gives us another 6 months.
This seems all above board but something is niggling in the back of my head where I seem to remember someone saying never to pay any money until your house is sold.

Any thoughts/advice anyone please? Thanks a lot.
 

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Hi There ,

I would like to suggest that you never make a down payment unless and until you have all the money required to pay for the new house.There are lot of instances where the buyer of your existing home could back out and you could be in deep trouble.Why would you spoil your peace just for a broker whose only aim is to knock off the commission that he makes out of the deal.

Warm Regards
All the very best
Ajay Mathew
 

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Agree with what has been stated, however if you do not want to lose this property, make sure any deposit is RETURNABLE and importantly is held securely by your Solicitor. If the Vendor does not accept this arrangement that will tell you everything you need to know, but at least your money will be safe.
 

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Agree with what has been stated, however if you do not want to lose this property, make sure any deposit is RETURNABLE and importantly is held securely by your Solicitor. If the Vendor does not accept this arrangement that will tell you everything you need to know, but at least your money will be safe.
In Spain, if the purchaser pulls out, the deposit isn't returned
 

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Are we actually talking about a deposit in the true sense of the word or just a holding amount held by the agent to secure the property?

If the former, then you should only pay this to your solicitor once he's completed all of his checks. I would also NEVER pay a deposit until I was ready to proceed (meaning having sold STC).

If the latter, I wonder how buoyant the market is - are you really at risk of losing it if you wait a while?


Personally, I would NOT pay any money to anyone until I had secured a sale first.
 

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If the latter, I wonder how buoyant the market is - are you really at risk of losing it if you wait a while?


Personally, I would NOT pay any money to anyone until I had secured a sale first.
I'm sure the state of the market will be very different in different areas, but what we are finding (as cash buyers, having sold our old house and moved into temporary accommodation) is that properties we have expressed an interest in, but haven't been keen enough to say we'd buy immediately, have found buyers if we've enquired about them again after a couple of weeks. That's not to say that there aren't hundreds of properties for sale which have been on the market for absolutely ages, but ones which are reasonably priced and in good condition do seem to be selling quickly. It is the ones at both ends, the very cheap and undesirable or the expensive properties, which are hanging around.

I agree, though, about not paying any deposit until you have secured a sale.
 

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Just to add, we went to look at an apartment on Saturday morning which is in a town centre building which has been completely reformed by developers. Almost every one has already been sold - and this is very much in the Spanish domestic market, not somewhere most foreign buyers would be looking. The Spanish domestic market does seem to be picking up fast.
 

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Discussion Starter · #9 ·
I've been in touch with with the person who is going to be doing our conveyancing but she doesn't seem to think there is anything wrong with this practice. She has suggested,if the vendor agrees, to maybe paying 5% for x amount of months which doesn't sound as drastic!
 

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I've been in touch with with the person who is going to be doing our conveyancing but she doesn't seem to think there is anything wrong with this practice. She has suggested,if the vendor agrees, to maybe paying 5% for x amount of months which doesn't sound as drastic!
Unless you are prepared to lose the deposit, be careful. As already stated the Spanish Property market is different to the UK. Make sure you have a Legal Conveyancer who is able to protect even hold your deposit.
 

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We have finally found a house we want to buy but haven't got ours on the market yet. The agent says we should pay a 10% deposit and the seller will give us 6 months to sell. If we haven't sold within that period we then pay another 10 % which gives us another 6 months.
This seems all above board but something is niggling in the back of my head where I seem to remember someone saying never to pay any money until your house is sold.

Any thoughts/advice anyone please? Thanks a lot.
I would advise that you get your own independent solicitor to draft the sales contract in Spanish & English before paying any money. Do not sign the agents contract without having your solicitor check & amend it to your advantage.
 

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Discussion Starter · #12 ·
Thanks Trotter(and everybody else!) but unfortunately the vendor has today decided he doesn't want to sell for the price agreed, so we have called his bluff and walked away. I am sure there is a rabbit off somewhere so watch this space :fingerscrossed:
 

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Thanks Trotter(and everybody else!) but unfortunately the vendor has today decided he doesn't want to sell for the price agreed, so we have called his bluff and walked away. I am sure there is a rabbit off somewhere so watch this space :fingerscrossed:
Oh dear, sorry to hear that. I know how you feel, after our recent experience. I hope it works out OK for you, and he will either come around or you will find another property you like.
 

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You have had a lucky escape, as it seems to me any Vendor having agreed a price, and then turning turtle is not to be trusted. If nothing else this is an experience which will serve as a warning not only to you but others who are considering a property purchase.
 

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Discussion Starter · #15 ·
I'm not sure if it's the agent, the vendor or both, but there is just something that doesn't ring true so we are hoping that it's not over yet. After a couple of months of humming and ha-ing whether we like it enough to buy we have now decided we love it!!
 

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I'm not sure if it's the agent, the vendor or both, but there is just something that doesn't ring true so we are hoping that it's not over yet. After a couple of months of humming and ha-ing whether we like it enough to buy we have now decided we love it!!
Understand emotion can be a powerful driver, however you have already discovered someone is being less than genuine and may well exploit your desire to acquire this " dream home". Even though your heart may rule your head, ensure you get a trustworthy Conveyancer.
 

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I'm not sure if it's the agent, the vendor or both, but there is just something that doesn't ring true so we are hoping that it's not over yet. After a couple of months of humming and ha-ing whether we like it enough to buy we have now decided we love it!!
Are you in contact with the vendor? Is the property advertised with another agent?

I wouldn't trust an estate agent as far as I could throw him/her. We were once told, by an agent, that a property we were interested had been sold. Only to find a few months later that it hadn't been sold, the vendor had just sacked the agent.

Make sure that you don't just pay the agent......That will go to his/her commission and you won't see it again.

Good luck with your house sale. :fingerscrossed:
 

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Are you in contact with the vendor? Is the property advertised with another agent?

I wouldn't trust an estate agent as far as I could throw him/her. We were once told, by an agent, that a property we were interested had been sold. Only to find a few months later that it hadn't been sold, the vendor had just sacked the agent.

Make sure that you don't just pay the agent......That will go to his/her commission and you won't see it again.

Good luck with your house sale. :fingerscrossed:
Absolutely agree. Agents on the Continent and UK, are often unscrupulous and will try to keep buyers away from the Vendor. If you are still in the UK it can be difficult to know exactly what is going on....you will be given all manner of stories and excuses why things have or not happened.
If you have trustworthy friends or contacts, in the location, it would be useful to engage their help!!
 

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Discussion Starter · #19 ·
It's only on with one agent and the vendor lives in Germany so we've had no contact. The property has now been removed from the website so it looks like what the agent told us was true after all :-( Back to the drawing board I fear!
 

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It's only on with one agent and the vendor lives in Germany so we've had no contact. The property has now been removed from the website so it looks like what the agent told us was true after all :-( Back to the drawing board I fear!
.......Or the vendor has sacked the agent! Keep looking, it will probably turn up again.
 
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