Retention of funds on property sale

[judyvin]

Does anyone know if there is any significance of witholding a retention for 13 months instead of 12? Friends selling their property have stated in their contract that the want the retention paid to them within 12 months but the purchaser is insisting on 13 months. Just wondered if there is a loophole after 12 months has elapsed!

[ozankoys]

Why are the purchasers holding a retention anyway?

[judyvin]

The purchaser insisted, £7000, the vendor didn't want a retention at all. They wanted it all done and dusted so to speak.

[ozankoys]

Well unless they are desperate to sell they should seek another buyer. If they are not in a position to do that then transfer into the Purchaser's name must not take place until full contract price is paid & the retention should be held by a lawyer, sorry I have no idea why they have asked for 13 months.

[ttoli]

The purchaser insisted, £7000, the vendor didn't want a retention at all. They wanted it all done and dusted so to speak.

and they'll never see the £7k if they accept , depends how desperate they are to sell ? ,13 Months rather than 12 isn't the issue , It just gives the purchaser more time to find fault and claw back £7k.

[Groucho]

As ttoli says.... They will never get the last payment. Once the buyer has possession they will renege on the contract citing anything to get out of paying. I would advise them to withdraw unless the £7k is of no importance to them.

[snd1966]

surely their advocate can advise them, only I do remember an owner who bought in1986 will not have a rental contract more than 11 months, she said at the time 12 months is not worth it. I personally always advise 3 months with a rolling option so probably there is a significance to 13 months.

[Bernie]

We were in a similar position because we did not have the title deeds to the house we were selling so we agreed however the funds were put in a joint account of both solicitors with a legal document clearly stating the agreement and signed by all. At the end of 2 years we were refunded our money plus interest (yes we placed in an interest account for this duration!) as all permissions and taxes etc had been cleared.

Your friend's money may being held for any reason not neccesarily the same as ours however if they were to follow this route then the money cannot be held by the purchasers, consider going down the route we used.