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Deposits
: A tricky area and one where people have been conned in the past.
A few tips to help you avoid being a
victim of fraudulent practices:
- The maximum deposit is 10% of the
purchase price and you may be able to negotiate it down.
You are not legally obliged to make a deposit and it will depend on
the terms of your first contract (compromis).
- If an agent asks you to bring cash with
you to view, consider whether you want to take the risk of even looking at
anything with this person. Cash, once handed over, can disappear easily
and it may be too late by the time that you realise you are never going to
be sold the house that you viewed.
- Pay the deposit only to an agent who
holds an escrow account with a financial guarantee for the return of
deposited funds or to a notaire. There
are often difficulties with foreign cheques and the most effective way of
proceeding is often by a direct money transfer.
This will give you a justification to give yourself time to return
home and reflect before parting with your hard-earned money.
- Do not hand money over until you have
signed the first contract and preferably once the vendor has done so too.
You should not be forced into paying before any sign of the
contract.
09/12/2002
- Issue of the Week
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