In the vast majority of sales that proceed to completion, the agent will usually account for any part of the deposit held by him on the closing of the sale, after deducting agreed fees and outlay due. Where the agent holds no deposit, it would be normal for you to instruct your solicitor to discharge the agent’s agreed fees and outlay on the closing, from the sale proceeds.
Where a deposit is taken from a ready, willing and able buyer and you, as vendor, refuse to execute the contract, the deposit is fully refundable on demand to the would-be buyer, but the agent has the right to sue you for fees on the basis that the professional task, for which you agreed to pay the agreed fee, has been performed, even if you decide not to benefit from it by refusing to proceed with the agreed sale.