Do I have to pay a deposit on exchange?

The buyer will usually have to pay a deposit at the same time as contracts are exchanged. However, there is no absolute requirement that a deposit is paid. In paying a deposit the buyer is giving the seller a guarantee that they will complete on the sale. If the buyer does not complete, the seller will usually be able to keep the deposit. In many sales the deposit will represent 10% of the sale price – however, this is always open to negotiation. Your solicitor or conveyance at PLS Solicitors will request the deposit in advance of exchange. The deposit will then be paid by a cheque drawn from PLS Solicitors’s client account. This provides a guarantee that the payment will actually clear. Payment is made to the seller’s conveyancer.