ozzbound Posted September 7, 2009 Share Posted September 7, 2009 I have just received the sale contract for the house. On the first page just under the completion date it says Contract Rate : 4% above the base rate of the Royal Bank of Scotland at the date hereof Could anyone tell us what this means???? Its the first time we have sold a house:wideeyed: Link to comment Share on other sites More sharing options...
Lynandsean Posted September 8, 2009 Share Posted September 8, 2009 I have just received the sale contract for the house. On the first page just under the completion date it says Contract Rate : 4% above the base rate of the Royal Bank of Scotland at the date hereof Could anyone tell us what this means???? Its the first time we have sold a house:wideeyed: Is there any further info added to this - statement/paragraph prior to it although I would hazzard a guess that it's got something to do with the sale falling through after exchange of contracts and the cost to the person pulling out at this point :err: Lyn Link to comment Share on other sites More sharing options...
Guest Gollywobbler Posted September 8, 2009 Share Posted September 8, 2009 I have just received the sale contract for the house. On the first page just under the completion date it says Contract Rate : 4% above the base rate of the Royal Bank of Scotland at the date hereof Could anyone tell us what this means???? Its the first time we have sold a house:wideeyed: HI there The provision is 100% normal. It is describing the rate of interest which the buyer will have to pay on the balance of the purchase price (less deposit) if the buyer fails to complete the purchase on time on the date fixed for completion of the sale. It protects the selller. It causes solicitors to have kittens because the money is all moved by CHAPS transfer between the banks. (CHAPS gives same day cleared funds.) The buyer's solicitor tells his/her bank, "Go." Three hours later the seller's solicitor phones as do all the estate agents in the chain, all saying, "Where is the money?" Swift call to the original bank reveals that they have had the instructions for 3 hours but they haven't even started moving the money. Much screaming at the bank ensues, followed by chewing one's fingernails to the elbows in case the buyer runs out of time to get the bluddy money into the seller's solicitor's hands! Cheers Gill Link to comment Share on other sites More sharing options...
Lynandsean Posted September 8, 2009 Share Posted September 8, 2009 HI there The provision is 100% normal. It is describing the rate of interest which the buyer will have to pay on the balance of the purchase price (less deposit) if the buyer fails to complete the purchase on time on the date fixed for completion of the sale. It protects the selller. It causes solicitors to have kittens because the money is all moved by CHAPS transfer between the banks. (CHAPS gives same day cleared funds.) The buyer's solicitor tells his/her bank, "Go." Three hours later the seller's solicitor phones as do all the estate agents in the chain, all saying, "Where is the money?" Swift call to the original bank reveals that they have had the instructions for 3 hours but they haven't even started moving the money. Much screaming at the bank ensues, followed by chewing one's fingernails to the elbows in case the buyer runs out of time to get the bluddy money into the seller's solicitor's hands! Cheers Gill Far funnier and better explanation (I was clearly off the mark in my explanation too lol) Lyn x Link to comment Share on other sites More sharing options...
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