House sale

aran edmonds

Hi,
Can anyone work this out for me please? Have recently sale agreed on house at a price of 200000k, but had to get work done before purchaser could draw down their mortgage ( small amount of price) we agreed on splitting the cost of this, 5000. And agreed on lower price of 197500k we paid for the work at full amount. What does the purchaser now owe us? Am totally confused as to final situation! Thanks in advance

Zaph

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davindub

err...5000

2500 discounted payment = your cash

5000k bill = your cash

total 7500

Expected to pay: 2500

= 5k ...

Unless of course the discount was not part of the work negotiation. In which case they owe you 2.5k

morrga

aran edmonds wrote: »

Hi,
Can anyone work this out for me please? Have recently sale agreed on house at a price of 200000k, but had to get work done before purchaser could draw down their mortgage ( small amount of price) we agreed on splitting the cost of this, 5000. And agreed on lower price of 197500k we paid for the work at full amount. What does the purchaser now owe us? Am totally confused as to final situation! Thanks in advance

Eh he should have paid 202,500 so he owes another 5k.

listermint

morrga wrote: »

Eh he should have paid 202,500 so he owes another 5k.

Surely they owe 200000 as they split the cost and agreed on a lower amount.

Tigger

200000

lower price 197500

extra cost 5000/2=2500
totAL =197500+2500=200000

jimmycrackcorm

What you should be getting is 202500 which is the agreed price plus half the cost of the work.

So why are they getting a 5k discount instead?

The figure of 197500 is only relevant had the purchaser shelled out the 5k for the work and you compensated them by giving them half that off the price.

listermint

jimmycrackcorm wrote: »

What you should be getting is 202500 which is the agreed price plus half the cost of the work.

So why are they getting a 5k discount instead?

The figure of 197500 is only relevant had the purchaser shelled out the 5k for the work and you compensated them by giving them half that off the price.

It appears as he stated he agreed to lower the price and then complete some work of which they note agreed to split.

So final figure is 200000

masterK

It's 202.5k. The agreed price was 200k, then the 5k in works came up which they are splitting, the seller has taken the buyers half off the final price which is where 197.5k comes from (presumably). The seller has paid the 5k out of his own pocket so is owed this back bringing the final total to 202.5k

The confusing thing was reducing the sale price, it should have stayed at 200k with 2.5k being added on for the repair work. Unless of course the 2.5k for repairs and the reduction in the final price to 197.5k are for different reasons which are mutually exclusive in which case the seller is owed 200k.

Graham

This thread clearly demonstrates there's several way of interpreting the agreement between OP and OP's purchaser. The confusion is compounded by the fact the OP appears to have offered his purchaser a discount to take into account the works and agreed to split the costs.

Personally, if the sale agreed price was €200k, and I'd agreed to split €5k of works with the purchaser I would just expect the sale price to be €197,500.

Other than that, we can't really tell what the OP proposed or what the purchaser thinks they accepted.

OP, was your solicitor involved, an estate agent? Go back and talk to either/both.

meeeeh

If purchaser paid for the house plus all the cost of repairs it would come to 205k (200k house and 5 k work). Seller agreed to discount 2.5 k of the work needed. Purchaser has to pay 202.5 k in total to seller. (Or 200k for house and 2.5 for work because seller covered all the cost of work needed).

I would ask for split invoice for the work done and forward one for 2500 to the purchaser and keep the other one for 2500 for yourself). Another option is requesting a refund from whoever did the work and them to reissue the invoice to the purchaser and credit seller. Realistically purchaser would probably have to pay who ever did the work first and then they would refund seller.

Rhinohippo

jimmycrackcorm wrote: »

What you should be getting is 202500 which is the agreed price plus half the cost of the work.

So why are they getting a 5k discount instead?

The figure of 197500 is only relevant had the purchaser shelled out the 5k for the work and you compensated them by giving them half that off the price.

If you drop the price to 197,500 and pay 2.5k, then basically, you are paying for all the repairs (5K). The purchaser is also paying 2.5k less for the house so will pay marginally less stamp duty (25 Euros). It's a win win for the purchaser and it looks like you are taking all the pain.