Buying house - can you get your deposit back?

cambasque

hi can anyone give some good advice please ?; if i put down a 10% deposit on a house i want to buy can i get it back if it all goes pearshaped my side,,,,,,i intend to buy but i am depending on my sale going through, my buyer has to get a mortgage, initially she has been passed but nothing is guaranteed, the sale is outside ireland where my buy is in ireland^^^can i write anything into the contract to safeguard me? i am 100% into buying this house, the only thing that would stop me is my buyer.....i just can't afford to lose that kind of money:mad:, not much to most people but all i have to me:D

3DataModem

cambasque wrote: »

hi can anyone give some good advice please ?; if i put down a 10% deposit on a house i want to buy can i get it back if it all goes pearshaped my side,,,,,,i intend to buy but i am depending on my sale going through, my buyer has to get a mortgage, initially she has been passed but nothing is guaranteed, the sale is outside ireland where my buy is in ireland^^^can i write anything into the contract to safeguard me? i am 100% into buying this house, the only thing that would stop me is my buyer.....i just can't afford to lose that kind of money:mad:, not much to most people but all i have to me:D

Is the deposit a holding deposit (pre contract) or a deposit payable on signing contract?

cambasque

part of it the estate agent wants as a booking deposit and then to make up to the 10% (deposit)? i haven't signed anything yet but am due to very soon.

Fol20

Dont sign anything until you have sold the other property. Contracts are legally binding and you can be sued if you dont buy it after contracts are signed.

cambasque

ok.....how do people manage in a chain then ? i am just worried i may miss this house and my chance to get back home.

Oral Surgeon

cambasque wrote: »

ok.....how do people manage in a chain then ? i am just worried i may miss this house and my chance to get back home.

Only pay your booking deposit if you accompany it with a solicitors letter saying that this deposit is fully refundable until contracts are signed.

The_Conductor

cambasque wrote: »

ok.....how do people manage in a chain then ? i am just worried i may miss this house and my chance to get back home.

What most people do these days is sell House 1, and only then buy House 2- possibly renting for the period.

What people used do- is sell House 1 and simultaneously buy House 2- and organise bridging finance if there was a delay in the two transactions matching.

Your selling one house abroad and buying a different property in Ireland is a bit of a difficulty even if bridging facilities were available (which they only are on exceptional circumstances these days).

Where are you selling- and what is the market like there? Any manner of quickening the transaction? Is it usual to buy property there, without having finance organised in advance? How likely is the sale to be delayed or fall through altogether. Worse case scenario and you end up with two properties- could you afford to finance the property abroad from rental income- and what would the tax implications be?

There are too many unknowns here to really be able to say anything else........

cambasque

i have signed the first contract to sell, but there is a get out clause that covers my buyer if for some reason she doesn't end up getting the mortgage.....if i was buying abroad i could write a clause to say my buying depends on her buying from me in an alloted timescale.....what i was wondering can i do that in ireland ?
i explained all this to the agent when i made my offer and again when it was accepted ....

The_Conductor

Nothing to stop you putting whatever you like in the contract- however, the seller doesn't have to agree to it. I'd suggest mirroring the other arrangement- and hoping that all falls into place.

How likely are you to encounter problems selling the overseas property? Is it in an area of high demand? What are sales like there at the moment? If you failed to sell- could you rent it out and would your finances allow an arrangement like this?

You can put whatever you like in your contract here- but the seller can tell you to take a hike if you're taking the piss, and if its in such a condition and location that they can readily sell- they'll probably just move on to the next purchaser.

It all boils down to location, location, location- for both where you're buying and selling.

cambasque

ok thanks, hard to know with the market how long it would take to get a new buyer if this one came into problems with the bank. i will try and get a solicitor to see what he can put in the fine print. all going well my sale will go through however i cannot afford to lose out a deposit.

The_Conductor

Your deposit here is normally refundable, until you sign contracts.

Also- the seller pays the estate agent, not the buyer. The estate agent does not get paid from your deposit.........

cambasque

when you say sign contracts, does that mean the final contract when all the money is paid over and you get the keys ?

Victor

cambasque wrote: »

when you say sign contracts, does that mean the final contract when all the money is paid over and you get the keys ?

Usual procedure:

* Find property.
* View property with estate agent.
* Bid for property.
* If successful, do a survey and pay holding deposit of a few thousand euros. Exact timing will vary.
* Vendor's solicitor draws up contract.
* Buyer's solicitor reviews contract
* Solicitors fine tune contract
* Buyer signs contract and hands over 10% of sales price, less the holding deposit.
* Vendor signs contract.
* Vendor vacates property.
* Buyer hands over balance of contract price and is handed the keys.

All this can take time and the length of time any stage takes can vary hugely.

Valentine1

Your booking deposit is fully refundable up until the time you sign the contract at which time you will pay the balance of the 10% deposit. After this the 10% deposit is not refundable except where you are willing and able to complete the sale and the Vendor cannot complete the sale and the appropriate 28 day notice has been served by you.

In relation to chains of house sales it is usual to wait until the contracts for the house you are selling have been signed before you sign the contract for the house you wish to buy. Once you can enforce the sale of your house it is safe to proceed with the purchase of another property. Alternatively it is possible to make the contract conditional on the sale of your house but this is less popular amongst Solicitors.

davo10

It is unfortunate but a fact worth noting OP that this is also not an ideal situation for the seller of the house you want to buy in Ireland.

Until you sign the contract, the seller can pull out and sell the house to a cash buyer or someone not buying subject to the sale of another property. Be mindful that if this house is in a popular area, there may be a limit to the sellers patience particularly if they also need the money to buy another property.

lawred2

Valentine1 wrote: »

Your booking deposit is fully refundable up until the time you sign the contract at which time you will pay the balance of the 10% deposit. After this the 10% deposit is not refundable except where you are willing and able to complete the sale and the Vendor cannot complete the sale and the appropriate 28 day notice has been served by you.

In relation to chains of house sales it is usual to wait until the contracts for the house you are selling have been signed before you sign the contract for the house you wish to buy. Once you can enforce the sale of your house it is safe to proceed with the purchase of another property. Alternatively it is possible to make the contract conditional on the sale of your house but this is less popular amongst Solicitors.

what if (big if) the mortgage failed to materialise?

is that your deposit gone wallop?

Oral Surgeon

lawred2 wrote: »

what if (big if) the mortgage failed to materialise?

is that your deposit gone wallop?

You would only pay the 10% when your solicitor has the bank loan pack in their possession. So the loan has been fully cleared at that stage.... That said I'm sure the bank can change their mind....

lawred2

Oral Surgeon wrote: »

You would only pay the 10% when your solicitor has the bank loan pack in their possession. So the loan has been fully cleared at that stage.... That said I'm sure the bank can change their mind....

So let's say I pay the refundable booking deposit on a new build that isn't slated to be ready to move in until middle of next year; is it normal for the agent to expect the remainder of the deposit to be paid within 21 days of putting the booking deposit down?

Surely once the booking deposit is down; the loan application starts??

Is 21 days not a bit tight to expect a loan pack to be with a solicitor?