10% Deposits on House Purchase

[taytoman]

I am currently trading up, either to a second hand house or possibly a new house development that will be ready in one years time

Basically, if someone pays a 10% deposit on my house, can they wrangle their way out of it and get their money back, or is that deposit strictly non-returnable, and they loose it if they pull out before final closing, unless I take pity on them or whatever!

In turn, if I put a 10% deposit on a second hand house or a new development for completion in 2008, can I get out of it, or is it strictly non-refundable.

I know people will say that "it depends on the contract", but basically I'm asking what is it usual for contracts to say when the 10% deposit is paid / received either on buying or on selling

 

[mf1]

Basically, the 10% is non refundable once the Contracts are signed. There may be circumstances where it must be refunded i.e. because of a flaw on title that renders the Contract unenforceable.

I would be wary of buying off plans - in todays climate I would prefer to try to tie in a sale and a purchase within a short time frame.

The deal is not done until the money is all in the bank and it just all feels quite risky at the moment.

mf