Booking deposit- What happens if EA goes out of business?

B

Bananaman

Registered User
Messages
20
Just went sale agreed on a property today, the EA has requested a booking deposit of 4k asap. The EA is a small company which I have not heard of before.
My first question is what would happen if the EA ceased trading, how secure is my 4k, is there anything I can do to mitigate the risk?
Secondly is 4k an excessive deposit(purchase price 85k)?
I have yet to engage a solicitor for the transaction but will do shortly.

Any advice appreciated
 
I spoke to a solicitor today, if the EA is a member of IAVI or the IPAV theres a scheme in place to ensure booking deposits are protected.

In my case the EA is not a member and so I will be paying my booking deposit to the vendor solicitor through mine so that I am protected under the Law Society’s compensation fund should anything happen.

Glad I spoke to my solicitor; this is useful advice for anyone worried about the safety of booking deposits.
 
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