deposit question

shinners007

hey guys does anyone know how long a deposit can hold a property untill?

my BF placed a deposit on a house last tues, we've ben pre approved of a 100% mortgage so will get deposit back.

yes mortgage with ulster bank stopped BF has a loan he didint clear.
i payed off the loan yes and have sent away to ICB for report.

see BF surrender his car (due to operation)and never had written agrment with GE money to pay off laibility monthly/ anyhing like da at the time GE money said it wouldnt affect a mortgage. he asked ge to write to ICB explaing this thay said thay would he asked for a copy of letter also.

this is the only negative in his credit history- he never missed payments to date on his personal loan with BOI/HFC/Credit card.

with ge money a/c now cleared and closed- his monthly loans only come to 300 euro of an income of 2500 a month

can this GE monry thing be changed on ICB report (i think u need a letter fom ge money to change it) but all this is causing delays.

my credit is a ok and have no outgoings ie loans and near enough income a BF monthly.

myworry is while all this is happening is the house secure with the deposit and for how long?

we've heard nothing since deposit was placed last tues.
is there a closing time etc.. who decides how long the deposit holds property for?

any info would be so appreciative
sinead

BuffyBot

is the house secure with the deposit and for how long?

The most sensible thing to do would be to ask the person/company you paid the deposit to.

shinners007

ok will do was just curious sale agreed sign is up and all was just wondering if anyone knew if legally there was a time frame on it

chuckles30

did you sign a contract when you paid the deposit - if you did, it should be in that. Otherwise it just depends on how long the seller is prepared to wait as far as I know...

delly

If this is the initial deposit of a grand or so, then its not binding and they can cancel your deposit at any stage.

If its 10% or so and you have signed legal contracts with your solicitor etc., then these are legally binding, but there is usually a date written into the contracts as to when the sale has to be completed. Don't think that you can wait as long as possible just because you have contracts.

shinners007

property cost 170000
paid a deposit of 5k.
got a receipt saying subject to contract but haven't signed a contract or heard anything from the solicitor

delly

shinners007 wrote:

property cost 170000
paid a deposit of 5k.
got a receipt saying subject to contract but haven't signed a contract or heard anything from the solicitor

In that case you have no legal standing. If someone came tomorrow and offered them more money, they would be within there rights to take it. Its called 'gazumping' and is immoral imho, but perfectly legal.

shinners007

ok delly cheers for that

are u 100% sure about that.

sale agreed is up and everything

lomb

shinners007 wrote:

ok delly cheers for that

are u 100% sure about that.

sale agreed is up and everything

this is how it works--
see property, agree price with agent, pay small sum 1-10 grand, this is a BOOKING deposit, u get a receipt , that says subject to contract/contract denied. the agent then stops ACTIVELY advertising the property however he is still legally obliged to convey any offers to the vendor after this! also if someone approches the vendor they can offer more that way. this is gazumping and is TOTALLY legal if morally wrong.

then after a few weeks, u receive terms a copy of which is sent to the vendor, the vendors solicitor, and your solicitor marking the price of the property, the amount of the contractual deposit due on signing, the title if known of the property, the name and address of the vendor solicitor and the name and address of your solicitor and your name and address and again these terms are subject to contract/contract denied.
on receipt of these terms the vendors solicitor draughts the contracts and sends them to your solicitor. this is the formal contract to sell ,and yours to buy and includes title documents etc as well as amount to pay on signing, the CLOSING date, and other terms like interest rate if u dont close on the CLOSING date.

your solicitor has 15 working days on receipt of the 2 copies of the formal contracts to get u to sign both in his presense, and pay usually the balance of 10% of the property price made payable to the vendors solicitor and this is usually sent by courier to the vendors solicitor. until the 10% is paid and accepted and the VENDOR COUNTERSIGNS THE CONTRACT and posts one copy and ur solicitor receives it, then there is NO CONTRACT and the vendor can withdraw. this is called EXCHANGING CONTRACTS, as u receive one copy of the 2 you signed originally. there is then a formal contract for the vendor to sell and u to buy.

on the contract is a CLOSING DATE, this must be set far enough in the future that legally THE VENDOR IS ABLE WILLING AND READY TO complete. ie all his tax clearances are in place.

if u dont pay the balance of 90% of the price to your solicitor on the closing date or the mortgage cheque isnt ready then u are in breach of contract, and the penalty is usually around 12% interest annually calculated daily. usually if u dont pay on that date, the vendor within a few days sends a notice to close to your solicitor and u have 28 days to come up with the bread or u lose all the money u paid (10%)

bottom line is if u have the 10% u can bluff for a month and a half or so before coming up with the rest, if u dont then ur mortgage needs to be agreed and ready and your life insurance or whatever cover the mortgage company wants needs to be agreed within 3 weeks of receipt of signed contracts as a cheque for 10% needs to be on their table within that time frame.

from what u are saying the vendor solicitor is draughting contracts as we speak and ur guy will receive them within a week, so u have roughly 3 weeks from then to pay the 10% and sign. u can be gazumped at any time until u receive one copy back countersigned.

shinners007

ok i get it now thanks so much
i really appreciate it

lomb

ur welcome for the info not many people know the full process, what i described is a private treaty sale and is a gentlemanly type of sale.
for completion il describe the other main type of sale if anyones interested,
much more aggresive sale is an auction sale, before the auction the vendors solicitors details are on the brochure and u are required to contact them before the sale and request the title documents and deeds(if any ,many defective title properties have been sold at auction in the past as no one checks this:eek: :eek: ) and the contract setting out terms.

the reason for this is 5 minutes after u win u are required to sign the contracts in the vendors solicitors presence and the vendor signs both and its witnessed by the vendors solicitor who then takes usually 10% in a cheque or bank draught from u and then gives u one copy which u then give to your solicitor by hand and he then carries the sale according to the contract. the closing date will be in it when u signed.
many people have bid at auction and signed and paid and then were unable to come up with the balance on the closing date or 28 dasy after the completion notice was received and have lost their 10%. sad but true...

good luck with it anyway:)