DEPOSIT

A part payment of the purchase price that the buyer pays to the seller on exchange of contracts. It may be the difference between the full purchase price and your mortgage advance; or it may be 10% of the purchase price. If you are simply buying a property without a related sale, we will ask you for this money before exchange of contracts. If you are both buying and selling, we'll probably be able to use the deposit that we receive from your buyers' lawyer as the deposit on your own purchase.

Often the deposit is less than 10%. But you should be aware that if you then fail to complete (and it is not the sellers' fault) you will have to make up the deposit to a full 10%. You may also have to pay compensation to the sellers if they lose out through your failure to complete.