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Second Hand Purchase & Balance

  • 20-10-2017 12:22pm
    #1
    godtabh
    Moderators, Science, Health & Environment Moderators Posts: 23,243 Mod ✭✭✭✭


    A friend and I are going through the purchase of second hand homes.

    When I had my bid accepted it was agreed with the estate agent that we would pay a booking deposit, sing contracts and the balance paid upon the closing our our house.Contracts have been exchanged. Happy days.

    My friend did something similar. Deposit paid and agreed with estate agent balance would be cleared upon draw down of mortgage/ house sale.

    He has contracts singed on the sale of his house and singed for the other house.

    The solicitor is now refusing the release the signed contracts on the purchase until a full 10% deposit is paid (approx €60k). My friend doesn't have that money and wont until his sale goes through.

    He will have equity if about €300k when the sale goes through and has singed contracts so he is good for the money.

    What is the norm?


Comments

  • #2
    whippet
    Registered Users, Registered Users 2 Posts: 7,718 ✭✭✭whippet


    Brings a new meaning to the Singing for your supper

    There is no such thing as being 'good for the money' .. until the money is in the account nothing will be released!!


  • #3
    NinjaTruncs
    Registered Users, Registered Users 2 Posts: 2,528 ✭✭✭NinjaTruncs


    The norm is to pay a small, usually €5K-€10K booking deposit upon going sale agreed and then you make up to 10% once the contracts are signed. The booking deposit is refundable up until the contracts are signed. Once signed if you pull out the 10% is forfeited.

    It seems you go off easy with only having to pay the booking deposit until you close.

    4.3kWp South facing PV System. South Dublin



  • #4
    Askthe EA
    Registered Users, Registered Users 2 Posts: 724 ✭✭✭Askthe EA


    I cant believe that you didnt pay a 10% contract deposit (less the booking deposit). Are you sure about that?? Ive never heard of it not being done. Ever.

    Was your deposit equal or more than 10% of the purchase price?


  • #5
    godtabh
    Moderators, Science, Health & Environment Moderators Posts: 23,243 Mod ✭✭✭✭godtabh


    Askthe EA wrote: »
    I cant believe that you didnt pay a 10% contract deposit (less the booking deposit). Are you sure about that?? Ive never heard of it not being done. Ever.

    Was your deposit equal or more than 10% of the purchase price?

    it wasnt 10% but probably not to far off it


  • #6
    Wesser
    Registered Users, Registered Users 2 Posts: 1,813 ✭✭✭Wesser


    How can your friend not have 10%?
    Max you can borrow is 90%.
    If he doesn't have 10% then he is out of his depth.


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  • #7
    [Deleted User]
    Posts: 24,714 ✭✭✭✭ [Deleted User]


    Wesser wrote: »
    How can your friend not have 10%?
    Max you can borrow is 90%.
    If he doesn't have 10% then he is out of his depth.

    The op explained that his friend is waiting on money from a sale of his own house to come through.


  • #8
    godtabh
    Moderators, Science, Health & Environment Moderators Posts: 23,243 Mod ✭✭✭✭godtabh


    Jaelynn Low Ivory wrote: »
    The op explained that his friend is waiting on money from a sale of his own house to come through.

    With equity of the sale he'll have about 30% deposit


  • #9
    Wesser
    Registered Users, Registered Users 2 Posts: 1,813 ✭✭✭Wesser


    Ok... so all he has to.do.is wait for the other same to go through....?


  • #10
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,286 Mod ✭✭✭✭The_Conductor


    Wesser wrote: »
    Ok... so all he has to.do.is wait for the other same to go through....?

    Sarcasm doesn't carry very well on the internet..........


  • #11
    Wesser
    Registered Users, Registered Users 2 Posts: 1,813 ✭✭✭Wesser


    I'm not being sarcastic. I'm just asking if that will solve the problem. Or if there is some other issue.


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  • #12
    Marcusm
    Registered Users, Registered Users 2 Posts: 10,632 ✭✭✭✭Marcusm


    godtabh wrote: »
    With equity of the sale he'll have about 30% deposit

    That’s irrelevant and sounds as if either he didn’t properly instruct his solicitor or his solicitor didn’t dn’t properly inform the other side of the need for a variation from standard terms. It’s very very unusual not to pay up 10% at signing and realistically should have been highlighted at bidding stage.


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