Should one be cautious about paying a depsosit for a flat that hasn't been built yet?

Question

Should one be cautious about paying a depsosit for a flat that hasn't been built yet?

Answer 1

damm right.a lot of building firms are going belly up.if they have your money you can kiss it goodbye.be very cautious

Answer 2

Very -  especially at this time.

property prices r going down!

Answer 3

Yes, but even more cautious about buying one at all in the present climate. Moreover, it is essential to make sure that the deposit taker, be it builder or agent, puts the deposit into a protected account. IE one that a liquidator or trustee in bankruptcy can't claim in the event of insolvency, particularly in the current climate and the long period of time that the deposit will be held.

What about interest on the deposit in the meantime?