On exchange, how is the deposit held by the seller's lawyer under the Standard Conditions of Sale (5th edition, 2018 Revision)?

• A. On the buyer's side, as a direct payment
• B. Seldom used
• C. As agent for the deposit on the seller's related purchase, with the balance held as stakeholder
• D. In the mortgage lender's account

Answer: (C)

The main idea is how funds are protected and flow in a property chain when exchange takes place. Under the Standard Conditions of Sale (5th edition, 2018 Revision), the deposit paid at exchange is held by the seller’s solicitor, but the way it’s held is specific: the portion that relates to the seller’s own onward purchase is held as agent for that deposit, and the remaining balance is held as stakeholder. This arrangement helps the seller secure their next purchase while keeping the buyer’s money protected in case of breach or delay, with both sides’ interests safeguarded until completion. The other options don’t fit because the deposit isn’t simply paid directly into the buyer’s hands, it isn’t described as “seldom used” (it’s standard practice), and it isn’t typically held in the mortgage lender’s account.