Frequently asked questions

Deposits are 100% safe. All deposits are held in a secure Lloyds Bank Client Account and are protected by £1 million Professional Indemnity insurance from Chubb Insurance. Our accounts are regularly audited and all deposit transactions are managed by independent Chartered Accountants.

The recommended deposit is 1% for properties sold up to £1 million. Parties can agree to a lower deposit but they have to agree to the same amount.

We follow a very simple guideline.

The party that has withdrawn from the transaction needs to demonstrate that their personal circumstances changed unexpectedly and beyond their control or new information was provided about the property they were buying which meant they were unable or unwilling to proceed.

PCD administrators will liaise with both parties and will provide opinions as to whether or not a party is at fault. Both parties have to agree, and if agreement cannot be reached the case is referred to independent arbitration. The Arbitrator’s ruling is final and cannot be challenged.

Out-of-pocket costs can be claimed for legal fees, building surveys, bank or building society mortgage application fees and PCD fees. These costs can relate to the transaction in question and any other associated transaction if it can be proven that costs have been incurred as a direct result of the other party pulling out. For example, if someone is selling a house and buying another house and their buyer pulls out then a claim can be made for costs incurred for both their sale and their purchase.

Other costs such as rent, storage, loss of income or interest can only be claimed in exceptional circumstances if it can be proven that these costs were only incurred because the transaction had been agreed.

If a chain fails due to circumstances beyond either the buyer’s or seller’s control, then neither party is at fault and deposits are returned in full to both the buyer and seller.

If a buyer cannot get a mortgage they are not at fault and deposits are returned in full to both the buyer and seller.

No, this is not a cost insurance service. Compensation can only be claimed if the other party is at fault.

We employ a panel of three independent, professional arbitrators who are selected on a rotation basis. They all have industry-relevant experience in either conveyancing or property surveying. It is rare that a case has to be referred to arbitration but if it does, the Arbitrator’s ruling is final and there is no appeal procedure.

This is very rare but unfortunately compensation is limited to the maximum amount of the deposit held.

Yes, we can transfer the deposit to a solicitor before legal contracts are exchanged but we would require confirmation from the solicitor that this deposit would be held until unconditional exchange takes place.

Unfortunately no. All communication has to be conducted through the website to ensure transparency for all parties at every stage of the transaction and throughout any resulting compensation claim. Buyers and sellers can call or email us at any time but they would not be able to discuss their case with the PCD team.

You can post documents to Pre-Contract Deposit Company Ltd, Barley House, Sopers Road, Cuffley, Hertfordshire, EN6 4RY.

Any information provided is only available to the parties in the transaction, their estate agent and the PCD team. No information is provided to any third parties. Any documents uploaded to the website will only be viewed by the PCD administration team and will not be seen by the other party or their estate agent.

Documents can be posted to the Pre-Contract Deposit Company Ltd, Maple House, High Street, Potters Bar, Hertfordshire, EN6 5BS and we will advise when we have received them.

The information you provide is only available to the other party and your Estate Agent. We do not pass on any information to any third parties. Any documents you upload to the website will only be viewed by the PCD Administration team and will not been seen by the other party or your Estate Agent.

Unfortunately not as these would be two different transactions.