Buying a field, advance payment
Posted: 22 Jun 2021 17:28
Hi,
I'm looking to buy a field to build a house. The plot is within residential zone, utilities are available across the road. We agreed on the price with the owner.
Our lawyer is waiting for some papers from the owner and Land registry, to confirm it's free form from any mortgages, obligations, restrictions, etc.
However he also told me that because the seller has financial issues and is unable to pay taxes and duties for the land transfer, he suggests that I will need to pay some 20-25% at the time we sign the agreement and its submission to the Land Registry.
Is it common approach here? Is it safe?
I feel a bit uncomfortable to give money ahead without being able to control that seller is really going to use them for paying taxes and fees required for Title transfer. I do understand, that if the seller at some later point will inform that he spent the amount for his urgent personal issues and is not able to perform his contract obligation, or even changed his mind and do not wish to sell at all, I may be in extremely good position to win the case in the court, but for the time being he already has my money and it becomes my problem to get them back or enforce land transfer, which requires a lot of time and efforts, which I would like to escape.
Are there any more hassle free alternatives available? Any suggestions are much appreciated.
I'm looking to buy a field to build a house. The plot is within residential zone, utilities are available across the road. We agreed on the price with the owner.
Our lawyer is waiting for some papers from the owner and Land registry, to confirm it's free form from any mortgages, obligations, restrictions, etc.
However he also told me that because the seller has financial issues and is unable to pay taxes and duties for the land transfer, he suggests that I will need to pay some 20-25% at the time we sign the agreement and its submission to the Land Registry.
Is it common approach here? Is it safe?
I feel a bit uncomfortable to give money ahead without being able to control that seller is really going to use them for paying taxes and fees required for Title transfer. I do understand, that if the seller at some later point will inform that he spent the amount for his urgent personal issues and is not able to perform his contract obligation, or even changed his mind and do not wish to sell at all, I may be in extremely good position to win the case in the court, but for the time being he already has my money and it becomes my problem to get them back or enforce land transfer, which requires a lot of time and efforts, which I would like to escape.
Are there any more hassle free alternatives available? Any suggestions are much appreciated.