who is the 10% deposit cheque made out to?

[damson]

When you're buying a house and you pay the 10% deposit (minus booking deposit) upon signing contracts, who is the cheque made out to... the vendor? vendor's solicitor? purchaser's solicitor?

 

[ClubMan]

I thought that it was made out by the buyer to the buyer's solicitor who then passed it onto the vendor's solicitor but I can't remember for sure...

 

[joey]

I made my balance of deposit out directly to the Vendors solicitor.

 

[Ann-Marie]

I made mine to the vendors solicitor as well

 

[Chris]

We made out the cheque to our solicitor, who then took care of the matter in cinjunction with the signed documents.

 

[Dinky]

We've been asked by our solicitor to furnish him with the funds, and he will look after matters from there. Seems silly to have it go through more parties than is necessary, though...

 

[damson]

So more or less half and half vendor's solicitor and buyer's solicitor... funny, you'd think there would be a standard procedure.

Thanks guys.

 

[Vanilla]

Most solicitors will ask their clients to make the cheque payable to them, they lodge it to their account and make out a cheque immediately to the Vendors solicitor. There are a number of reasons for this- firstly the vendors solicitor may not accept a private cheque, but will accept a solicitors cheque, and secondly the Law Society want all solicitors to show clients monies coming in and going out of their accounts to be able to track all client funds. We are heavily regulated by the Law Society in relation to our accounts. Some solicitors will get around this by asking for a bank draft made payable to the Vendors solicitor- and keep photocopies on the file and give a receipt to the client and forward it, keeping a copy of the draft and covering letter. this has the advantage of less accounting entries, not having to wait until the cheque clears etc.

 

[damson]

Thanks Vanilla.

 

[Eurofan]

Is is possible to get the deposit (once contracts are signed) passed straight through to the vendor?

I'm in a position where I've allowed an excessive amount of leeway to my buyer in terms of time to organise his finances and am now in difficulty myself.

Contracts are now signed and about to be returned to my solicitor but I'm wondering if I can get that money released straight to me?

 

[MOB]

Almost certainly not. Sometimes, on large transactions which are going to go on for a couple of years (sale of land subject to planning permission) there might be agreement on releasing the deposit direct to the vedor; but in an ordinary house sale it is virtually unheard of. This does not include new houses - builders get deposits released to them and indeed stage payments too.