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I have a vendor who initially asked for £3k to be released to him from the solicitors on exchange date . The completion date is set for 10 days later.
He explained he needs the funds to pay for relocation removals etc. I initially agreed to this however now he is asking for £24k to be released to him on exchange date and that’s 2 days before exchange.
I am reluctant to authorise such a large sum as I am afraid he might run away with my money. Has anyone had similar experience? Are there any guarantees that he won’t run away with my money? Also if I was to authorise this, do you think I should ask for a further discount on the purchase price?
This is for a BTL house in London - purchase price £500k
Any advice would be highly appreciated. Thank you
Advise him via your solicitor that your response is Foxtrot Oscar
I would but this is a great deal and don’t want to let it fall through.
3k is a lot never mind 24k......
I personally wouldn't go there and I wouldn't be worried about the deal falling through.
All exchange and completion monies need to go through the two registered solicitors. To protect you and for money laundering compliance.
Dont do it, speak to your solictitor.
Speeding up the exchange completion lag maybe the solution to all parties.
Speak to your solicitor my immediate thoughts are massive red flags.
The 3k had a story re moving costs i perosnally wouldn't do it but whats the need for this 24k? Has your solicitor done all the relevant checks yet? This smells like money laundering
Not a penny should flow from you to vendor prior to exchange. And at exchange money has to go via solicitors as others have said.
No! No! No!
The deal you think is good seems to be changing and may turn out to be less than good if you are not careful.
The vendor's short term financing is his problem, not yours; he will encounter the same issue with whoever he sells to (hopefully) so stick to your guns. Solicitors to hold deposit until completion, in the time honoured way that prevents "accidents".
What’s wrong with exchange and completion happening simultaneously?
its not unusual and should solve everybody’s problem
Yes that's what we do. There is no need to have a pause between exchange and complete.
Agreed , I have done this with the last property I sold.
ABSOLUTELY NOT. you don't release money to anybody except your solicitor. This has all the hallmarks of a classic con, a really good deal (too good to be true?) wanting money up front? very suspicious!