Do we need a solicitor for 5K deposit on a new house

FrankC21

Hi,

We are considering buying a new house up in Drogheda and they have a corner lot offered in a very reasonable price the new house will be completed estimated in December. They said in order to secure the house we have to put a 5k deposit but it is refundable for up to 4 weeks if we ever change our minds, Our question is if we need a solicitor for that transaction?

Stanford

You would be very foolish not to retain a Solicitor in any kind of property transaction

amcalester

Not for the €5K deposit, that’s fully refundable until contracts are signed.

But you will need a solicitor at some point.

davindub

Probably better to get one, 5k is small but still better to verify the t&cs of this change of mind clause. I mean why isn't it refundable until the contracts are signed or are you signing contracts now? The latter should involve title checks etc.

is_that_so

FrankC21 wrote: »

Hi,

We are considering buying a new house up in Drogheda and they have a corner lot offered in a very reasonable price the new house will be completed estimated in December. They said in order to secure the house we have to put a 5k deposit but it is refundable for up to 4 weeks if we ever change our minds, Our question is if we need a solicitor for that transaction?

I didn't bother but as you will need one anyway why not involve them at all stages of the transaction?

Stanford

If the deposit is fully refundable then why pay it at all?

Darc19

It should be refundable until you sign contracts.

You don't need a solicitor for paying the booking deposit, but you'd want to appoint one almost immediately after as contracts will have to go to the solicitors

A lot of issues in drogheda so be sure it's well away from the main anti social areas.

Stanford

And on what contractual basis should OP sue if he doesn't get his 5k back?

FrankC21

Darc19 wrote: »

It should be refundable until you sign contracts.

You don't need a solicitor for paying the booking deposit, but you'd want to appoint one almost immediately after as contracts will have to go to the solicitors

A lot of issues in drogheda so be sure it's well away from the main anti social areas.

Where exactly are the main anti-social areas because the new house is up in Liscorrie.

is_that_so

FrankC21 wrote: »

Where exactly are the main anti-social areas because the new house is up in Liscorrie.

You're perfectly safe there, well away from any carry-on.

Stanford

I thought this was about Solicitors and a booking deposit?

is_that_so

Stanford wrote: »

I thought this was about Solicitors and a booking deposit?

It's part of a bigger picture of house buying in Drogheda.

MrPropertyGuru

Hi Frank,

Solicitors are required to act in your best interests and give you good quality service, so don’t be afraid to ask them any questions. It can be a complicated and time-consuming process, but there are a number of legal documents that need to be completed. In the unlikely event that anything goes wrong, you are protected if you use a solicitor

Greetings
Andre

Baby01032012

I can't believe the rubbish that has been posted in replies above.

Booking deposit of 5k is standard you pay across to estate agent on day 1. You don't need a solicitor for that. There is no legal transition until contracts are signed. You can get your 5k back at any stage up until you have signed contracts and paid balance of deposit to your solicitor. 5k is just to sale agree to show your serious interest in the property but nothing more.

myshirt

Baby01032012 wrote: »

I can't believe the rubbish that has been posted in replies above.

Booking deposit of 5k is standard you pay across to estate agent on day 1. You don't need a solicitor for that. There is no legal transition until contracts are signed. You can get your 5k back at any stage up until you have signed contracts and paid balance of deposit to your solicitor. 5k is just to sale agree to show your serious interest in the property but nothing more.

You become an unsecured creditor in the event it all goes wallop.

Also, a lot of people think putting "Subject to Contract / Contract Denied" at the front of the mail sending the cheque covers your arse. When I was a practicing solicitor if I had four hands I'd have used them all to face palm at the same time. Even worse, some people don't even know about subject to contract and just assume it'll all be grand. Likelihood is it will, but why take risks you don't have to?

If you channel the 5k booking deposit through a solicitor at least the Solicitor knows what they are doing and can make it clear that it's subject to contract.

Baby01032012

myshirt wrote: »

You become an unsecured creditor in the event it all goes wallop.

Also, a lot of people think putting "Subject to Contract / Contract Denied" at the front of the mail sending the cheque covers your arse. When I was a practicing solicitor if I had four hands I'd have used them all to face palm at the same time. Even worse, some people don't even know about subject to contract and just assume it'll all be grand. Likelihood is it will, but why take risks you don't have to?

If you channel the 5k booking deposit through a solicitor at least the Solicitor knows what they are doing and can make it clear that it's subject to contract.

If no estate agent involved of course send deposit through solicitor. However as is the norm and a requirement estate agent will hold deposit in client account and issue notice of sale agreed subject to contract. This money is projected as estate agent is bonded by the Irish courts/psra.

The OP asked a simple question, most of the responses were from those clueless to the process. I don't think there is any point starting discussing the merits or technicalities when it is a well worn process.

myshirt

Baby01032012 wrote: »

If no estate agent involved of course send deposit through solicitor. However as is the norm and a requirement estate agent will hold deposit in client account and issue notice of sale agreed subject to contract. This money is projected as estate agent is bonded by the Irish courts/psra.

The OP asked a simple question, most of the responses were from those clueless to the process. I don't think there is any point starting discussing the merits or technicalities when it is a well worn process.

I think that's fair enough. They are bonded. So that's extra assurance there.

Samuel T. Cogley

Normally you wouldn't need a solicitor at this stage but the 4 week thing is just plain odd.

Dolbhad

If the builder has an auctioneer, you can give over deposit directly. However they will want solicitors details then to give the sales note so you should have solicitor picked out. However if the builder doesn’t use an auctioneer and instead have their own sales team, you’d want to have a solicitor to give deposit to who can pass it onto builders solicitor.

We reserved a new build house last year. Builder had their own sales team, not auctioneer so wanted deposit to be made directly to them. Our solicitor said we could give deposit to them who could send it onto builders solicitors, subject to contract/contract denied. We did that. We then decided to pull out of transaction and got the money back immediately. It’s just the extra security that if anything happened to builder in the meantime the money was always secure.