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  • 2 Post By Kiz
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When and who to pay second flat payment

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  1. #1

    Join Date
    Jan 2016
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    51

    When and who to pay second flat payment

    Hi,

    I have signed Provisional Sales and Purchase Agreement (paid 3% of sales price as initial deposit).
    Formal Sales and Purchase agreement will be signed on 27th.

    Now, the solicitor told me to cash-transfer: stamp duty + 7% of purchase price (2nd payment of the flat) to the solicitor's firm bank account by 25th.
    Is this the normal process? I always thought 2nd payment will be made directly to the seller (vendor).

    Thanks!


  2. #2
    Kiz
    Kiz is online now

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    Aug 2008
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    617

    Normal to pay to the vendors lawyer. That way they can make sure that the property is sold without any outstanding amounts like unpaid rates and management fees etc (not a lawyer, but just my understanding having been through the process a number of times). From my understanding, it is in your interest to pay their lawyer and not the vendor directly. Lawyers on here can clarify.


  3. #3

    Join Date
    Jan 2016
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    51
    Quote Originally Posted by Kiz
    Normal to pay to the vendors lawyer. That way they can make sure that the property is sold without any outstanding amounts like unpaid rates and management fees etc (not a lawyer, but just my understanding having been through the process a number of times). From my understanding, it is in your interest to pay their lawyer and not the vendor directly. Lawyers on here can clarify.
    Thank you for your reply.
    To make my post clear, MY solicitor has demanded me to cash-transfer stamp duty + 7% to MY solicitor firm's account.
    Would it be fine or should I be asking/requesting to pay the vendor's solicitor?

  4. #4

    Join Date
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    Its normal to pay 10% of value by Formal S&P and its better if it is going through your solicitor..


  5. #5
    Kiz
    Kiz is online now

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    Quote Originally Posted by Kiz
    Normal to pay to the vendors lawyer. That way they can make sure that the property is sold without any outstanding amounts like unpaid rates and management fees etc (not a lawyer, but just my understanding having been through the process a number of times). From my understanding, it is in your interest to pay their lawyer and not the vendor directly. Lawyers on here can clarify.
    Sorry yes should be paid to your lawyer, the initial deposit is paid to their lawyer and then after that the money goes to your lawyer
    shri and chuckster007 like this.

  6. #6

    Join Date
    Jan 2016
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    Thank you very much both!!


  7. #7

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    Quote Originally Posted by Kiz
    Sorry yes should be paid to your lawyer, the initial deposit is paid to their lawyer and then after that the money goes to your lawyer
    Just want to make sure its clear to the OP - you pay into your lawyer's client account. Not the vendor. Your lawyer is responsible for your welfare... not the vendor's lawyer.
    traineeinvestor likes this.

  8. #8

    Join Date
    Feb 2019
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    242

    Also, Congratulations!

    shri likes this.