Deposit on Sale Agreed

ame123

How much normally do you have to place in deposit once you have sale agreed on purchasing a house. Also does this have to be paid if selling your own home and using the funds to purchase.

Squatman

ame123 wrote: »

How much normally do you have to place in deposit once you have sale agreed on purchasing a house. Also does this have to be paid if selling your own home and using the funds to purchase.

mine was 8k. im not sure if there is a "normal"

wench

At sale agreed you normally pay a holding deposit of about €5,000.
At contract signing you pay the balance of the 10% deposit.

How you're funding it isn't the seller's problem, they may accept a smaller deposit, but they don't have to.

theteal

I've never bought a house in Ireland, this deposit is unusual to me. Over here you only pay deposit when contracts are exchanged and you're definitely going ahead with purchase.

Is this deposit refundable?

Sorry to divert thread a bit

wench

theteal wrote: »

I've never bought a house in Ireland, this deposit is unusual to me. Over here you only pay deposit when contracts are exchanged and you're definitely going ahead with purchase.

Is this deposit refundable?

Sorry to divert thread a bit

The initial holding deposit is refundable, the 10% at contract signing is not.

theteal

wench wrote: »

The initial holding deposit is refundable, the 10% at contract signing is not.

OK more or less same as here so but just no initial holding deposit - I suppose that can help weed out time wasters (if there is such a thing when it comes to buying/selling houses)

Thanks

ame123

So am I right in assuming the deposit paid when going sale agreed is just a holding/I'm not messing around deposit and is not defined as a set percentage. The reason I'm asking is we are trying to sell and purchase at the same time -not so much an upgrade just a location move. Looks like we will go sale agreed on our own home shortly so id like to put in an offer on a house we like. The estate agent of the house we like told us last week we could make an offer if we went sale agreed on our own home. E would be able to come up with a holding deposit if not too much but won't have the 10per cent until we sell our own.

wench

Exactly, it is arbitrary, but 5K ties in with many people's online banking transfer limit, so its a popular amount.

Mint Sauce

Booking/Holding deposit is about 5k, usally payable to the agent, and is refundable. 10% deposit on signing of contracts to your solicitor, none refundable.

ame123

Ok. So we can cover a holding deposit. The 10pc might be a problem. This is at contract stage? could we use the 10 paid on contract of our own house?

annoyedgal

We payed 8 k deposit on house we are buying and agent took 7.5 k deposit for house we are selling. Solicitor advised may negotiate less than 10 per cent on signing however our buyer does not have to agree to this and can ask for full 10 per cent minus deposit. We have arranged a family short term loan luckily. Bit of a pain alright when your buying and selling !

CalRobert

Paid a 7500 booking deposit. Sale fell through after inspection (bummed about that one). Got deposit back no questions asked.

homerjay2005

i paid 10,000 boooking deposit after sale agreed which was refundable.

this is held by the estate agent. according to my solictor, this is to ensure that the estate agent is paid by the seller if/when the sale goes through.

so in otherwords, if their fee is 5000, they would then give the seller 5,000 once the property is sold.

ionapaul

ame123 wrote: »

Ok. So we can cover a holding deposit. The 10pc might be a problem. This is at contract stage? could we use the 10 paid on contract of our own house?

From what you're saying I'm guessing you want to sell your existing house and move into the new one at the same time, right? If so, what you are hoping for is just not possible given the scenario you've outlined - that you don't have the full 10% deposit for the new house.

You won't be able to re-use the 10% deposit that the buyer is putting down for your existing house, as a deposit for your new house, it doesn't work like that (if I'm wrong someone please correct me!) - that 10% will be held by your solicitor and no way are they going to hand it over to you to use elsewhere, think of all of the things that could go wrong with that idea. If you don't have the full 10% deposit for the new house, whether via savings, a loan, whatever, your only option is to break up the chain into two distinctive parts; 1) you sell your house and move somewhere when the sale goes through 2) use the funds received from the sale of the house to put the 10% deposit on a new house, sign the contracts and proceed with that.

Makes things a bit more difficult for you but to be honest I think it is very rare these days for people in a chain to be able to move out of house A on a Saturday morning and into new house B later that night, most people need to move into rented accommodation or with family/friends for a time between handing over the keys of their old house and getting the keys to their new one.

ame123

This is actually clearing a lot of things up.
so it looks like we are looking at going ahead with the sale of our home. then moving in with family while we wait for full sale of where we want to buy to go through.., but we can still offer on the house we are looking at cant we? we would prob manage a holding deposit.

Thestones

ame123 wrote: »

This is actually clearing a lot of things up.
so it looks like we are looking at going ahead with the sale of our home. then moving in with family while we wait for full sale of where we want to buy to go through.., but we can still offer on the house we are looking at cant we? we would prob manage a holding deposit.

You can offer and go sale agreed but you won't be able to sign contracts until you have the full deposit from your house sale. This could be a problem if your own sale is taking a long time and you are also sale agreed at the same time, if you try delay signing contacts for too long the sellers could pull out.

Bass Reeves

Deposit is usually 5% of price. It is totally refundable and in a way is about as much use as an ash tray on a motorbike. Buyer can demand it back at any time before signing contract. It is usually held by the auctioneer who takes his fees and selling costs out of it after sale is complete before releaseing remainder to vendor. Full amount is payable after signing contract. Between booking and signing contract purchasser has to get engineer to check house and solicitor has to check deeds before contract is signed