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Guy Simmonds’ Policy on Taking Fully Refundable Deposits

Guy Simmonds Policy on Taking Fully Refundable Deposits

Leading National Licensed Property Agent Guy Simmonds has been successfully selling freehold and leasehold quality lifestyle licensed businesses for over the past 35 years throughout the whole of England and Wales.  We have an excellent reputation in the licensed trade and offer a highly professional and personal service. We are a family run business, and are proud of our hard-earned reputation and longevity. Also, the fact that we are a company with a substantial net worth, gives vendors and purchasers the confidence to use our services time after time, receiving honest and professional advice. We also have our own freehold training academy and our MD has his own Freehouses leased out on favourable free-of-tie lease terms.  Consequently, we are well qualified to also advise upon the creation (and provide on-going advice) of our speciality Free-of-Tie leases, on behalf of retiring freehold publicans or our buy-to-let investor clients.

Guy Simmonds’ Policy on Taking Fully Refundable Deposits

When a sale has been agreed we will require ‘proof of finance’ from the buyer including details of any loan etc. Our policy (successfully formulated over the past 35 years) is for the buyer to lodge a preliminary and totally refundable deposit with Guy Simmonds as an act of good faith, commitment plus ability and desire to proceed. When both vendor and purchaser are ready, we will then formally instruct solicitors to proceed with the transaction (full written details will be given) and the buyer’s solicitor to carry out the requisite due diligence, prior to exchange of contracts and completion.

Our website will then be endorsed to illustrate that such a deposit has been taken and solicitors instructed on each specific business. Speed on exchange of contracts is therefore in the interests of all parties and we will use our best endeavours, where required to help move the transaction forward to a speedy exchange of contracts and successful completion.

Please be assured that in the unlikely event of the sale not proceeding to exchange of contracts for any reason whatsoever then we guarantee upon written request, to refund the deposit within 3 working days. Please note: We always hold your refundable deposit for the duration, in a separate client’s ‘ring-fenced’ deposit account.

Never Pay an Agent a Substantial Non-Refundable Deposit

On the advice of good commercial solicitors, it is not our policy to take non-refundable / lock-out deposits. We are advised that this is not good business practice and we do not want to damage our hard-earned and excellent reputation that has been built up over the past 35 years.

Sales do occasionally ‘fall-through’ due to any number of reasons and it is unfair that the purchaser should be financially penalised by losing their deposit, especially if it is not the purchasers fault - likewise the agent acting for the sale should not be rewarded financially if a sale does not proceed due to the purchaser not being able to proceed. No solicitor would ever recommend paying a substantial non-refundable / lock-out deposit of many thousands of pounds. To quote the international Law firm Seddons, ‘such agreements must be entered into with trepidation as the buyer must remember they are being ‘locked’ into an agreement and face losing their non-refundable deposit if they cannot or do not wish to proceed with the purchase’.  We are aware of litigation against an agent involved in this dubious practise and we do not want to see such an agent blatantly profiting from purchasers / vendors in this manner and bringing the industry into disrepute. If you are ever asked by an agent to pay a substantial non-refundable deposit, you should immediately take your own solicitor’s advice and obviously avoid this agent. It would also be prudent to do a free company check (google) at Companies House to establish the net worth (or negative net worth if the agent is trading whilst insolvent!) of such an agent.

 

Guy Simmonds Business Transfers Ltd
Coppice Farm, Ashby Road, Melbourne, Derbys DE73 8BJ.
Tel: (01332) 865112 (Main number & answerphone - 24 hours & fax - 5 lines)
www.guysimmonds.co.uk
sales@guysimmonds.co.uk
Registered No. 2727033
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