BUYER - PREPARATION OF THE CONTRACT

Question 1

WHAT STAGE OF THE LSCP IS USED IN THIS STAGE OF THE TRANSACTION?

Answer 1

Stage A (instructions) & Stage B (pre-exchange)

Question 2

WHAT IS THE USUAL DEPOSIT FOR THE PURCHASE OF A PROPERTY?

Answer 2

10% of the purchase price (SCS 2)

Question 3

WHAT IS MEANT BY CAPACITY OF THE SELLER?

Answer 3

The buyer’s solicitor must consider how the deposit is to be held by the seller:

1. Stakeholder
2. Agent for the Seller

Question 4

WHEN CAN THE SELLER’S SOLICITOR HOLD THE DEPOSIT AS STAKEHOLDER?

Answer 4

Where there is no related purchase.

The seller’s solicitor will hold the deposit in a neutral position pending completion and must not part with it.

Question 5

WHEN CAN THE SELLER’S SOLICITOR HOLD THE DEPOSIT AS AGENT FOR THE SELLER?

Answer 5

The seller’s solicitor can release the deposit money to the seller, who can use the money for any purpose they wish

Question 6

WHAT IS THE COMPROMISE IN SCS 2.2.5 IN RESPECT OF THE CAPACITY OF THE SELLER?

Answer 6

Allows the deposit to be held by the seller’s solicitor as agent insofar as it is needed for any related residential purchase.

Any sums not so required must be held by the seller’s solicitor as stakeholder in accordance with SCS 2.2.6