The Maze of House Purchasing

Banjo013

I am currently going through the maze that is house buying. What a seemingly hazardous thing it is, the one thing I've learnt so far is that estate agents are the most untrustworthy bunch of people on the planet .... they tell you what they think you want to hear and usually don't tell you a word of the truth about anything. They are in a position of total trust as well, and how easy it would be for them to abuse that trust you place in them with what is probably the single biggest thing you are likely to buy in your life. Don't turn your back on them I think is the way to go.

Anyway I paid a booking deposit on a property last week. It's my first time actually buying a house that wasn't a new build from a builder so I am totally lost with it all. Can someone tell me exactly what the term "Sale Agreed" means ? I thought a property went sale agreed when the booking deposit was paid, but not so it would seem because I drove by the property on Saturday and the "For Sale" sign is still up. The property is also still listed as for sale on the internet. I guess I am worried that the seller will continue to allow potential buyers to view the property and if someone makes a higher offer I'll be pushed out of the way. I have not agreed anything in terms of a completion date, do you think I should push to agree a completion date or does that matter a damn either ? Should I insist the property is taken off the market or at least listed as "Sale Agreed" ? Or does that matter either ?

I am not selling my current property so I am ready and waiting now. I've let that be known to the sellers estate agent. I guess I am sitting here worried that I am psyching myself up for getting into my new home but I don't know what the seller and their agent are doing ..... they could be making moves to obtain higher offers behind my back and I'd never know.

http://daftwatch.atspace.com/

http://www.irishpropertywatch.com/

^^ I wouldnt worry about being gazumped

seamus

Banjo013 wrote: »

Anyway I paid a booking deposit on a property last week. It's my first time actually buying a house that wasn't a new build from a builder so I am totally lost with it all. Can someone tell me exactly what the term "Sale Agreed" means ? I thought a property went sale agreed when the booking deposit was paid, but not so it would seem because I drove by the property on Saturday and the "For Sale" sign is still up. The property is also still listed as for sale on the internet. I guess I am worried that the seller will continue to allow potential buyers to view the property and if someone makes a higher offer I'll be pushed out of the way. I have not agreed anything in terms of a completion date, do you think I should push to agree a completion date or does that matter a damn either ? Should I insist the property is taken off the market or at least listed as "Sale Agreed" ? Or does that matter either ?

The estate never changed the signs on our property to "Sale Agreed" or "Sold", it really just depends on how bothered the agent is about it.

When you pay a booking deposit, that legally prevents the estate agent from advertising the property or showing it to other people. If you've paid a booking deposit, I would ask why the property is not yet listed as sale agreed and removed from the websites, and don't let it drop until they do so.
Be aware that the property is still open to other bidders. The vendor is technically prevented from showing the property privately because of the agreement they have with the estate agent. This is rare enough though, particularly in this climate.

You should push to agree a closing date and make sure that date's in the contracts before you sign them. Most contracts specify a date and the penalties that are to be paid if either party goes over that date. In practice, most people are flexible and don't ask for the penalties to be paid, but it serves as an insurance of sorts.

Jo King

seamus wrote: »

The estate never changed the signs on our property to "Sale Agreed" or "Sold", it really just depends on how bothered the agent is about it.

When you pay a booking deposit, that legally prevents the estate agent from advertising the property or showing it to other people. If you've paid a booking deposit,.

No it doesn't. A booking deposit has no meaning in the law of conveyancing.
Either party to the proposed sale can change their mind and the booking deposit will be given back. Until both parties sign a contract everything is wide open.
When an auctioneer accepts a booking deposit he should write to the solicitors for both parties immediately. Once he does this he has little more to do. He is obliged to tell the vendor of any offer made on the property even after he has accepted a booking deposit. All the parties can do is sit tight until the contracts are signed.

seamus

The booking deposit does prevent the auctioneer from advertising and showing the property. Technically anyway - afaik, it's a civil matter if the property is shown and/or advertised after it's been "booked". I use the term "legally" a little too freely sometimes

Yes before the contracts are signed, either party can pull out and the deposit goes back.

Smoggy

If you want to find out if the house you have a deposit on is still being viewed; get a friend to call up and ask for a viewing .... if they are told the house is sale agreed, then all is well.

Jo King

seamus wrote: »

The booking deposit does prevent the auctioneer from advertising and showing the property. Technically anyway - afaik, it's a civil matter if the property is shown and/or advertised after it's been "booked". I use the term "legally" a little too freely sometimes

.

How? Under what law? What sort of a civil matter? What technicality? The booking deposit is always paid "subject to contract". the main reason for it is to secure the auctioneers fees! It also serves to establish the bona fides of the purchaser. It means nothing in law. Many auctioneers stop showing the property on the basis that the owner having agreed a sale does not want the hassle and expense of extra advertising and viewings.

seamus

Jo King wrote: »

How? Under what law? What sort of a civil matter? What technicality? The booking deposit is always paid "subject to contract". the main reason for it is to secure the auctioneers fees! It also serves to establish the bona fides of the purchaser. It means nothing in law. Many auctioneers stop showing the property on the basis that the owner having agreed a sale does not want the hassle and expense of extra advertising and viewings.

Now that I looked into it, it would appear that the IAVI code of practice requires their members to withdraw the property from sale (i.e. stop advertising) and put up a "sale agreed" sign once a booking deposit has been received. So the EA (assuming they are reputable) has actually agreed to abide by such a code, nothing to do with hassle or extra cost.

Kind of seems unfair on the buyer - they are effectively handing over a booking deposit for no reason.

If you had the inclination, you could probably argue that since the IAVI code states the above, then there is an implied agreement/expectation between the buyer and estate agent that the property will no longer be advertised. Of course, since the EA is obliged to present all offers to the vendor (up until the contracts are signed), then their hands are tied to a certain extent and a court would probably see it that way.

Jo King

Not every agent is a member of the IAVI. Even if a member agent does not follow the IAVI code , the only remedy is a complaint to the IAVI. There is nothing illegal about an agent accepting a booking deposit and continuing to market a property.
Neither the purchaser nor the vendor know they have a deal until both have signed a contract, usually some weeks after the booking deposit has been paid. It is stressful for both parties.
Until the conveyancing system is simplified considerably it will continue to be like this.