Process of buying a property directly from the owner

demo223

Howdy

I am about to offer on a house that is being sold directly by the owner (no estate agent involved). Question is what’s the best approach when paying a Booking Deposit in this case? Their solicitor? My Solicitor? Paying it directly to the owner does not seem to be a wise decision in case of either walking from the sale

Atlantic Dawn

Back of an envelope type answer from me...

You would need to before doing anything establish a fair value for the property either by someone valuing it or by sales of the same or similar properties in the area, otherwise there would be tax implications if sold at a reduced rate.

You need a solicitor and the seller need a solicitor, it can't be the same company, between them both they should be able to handle the deposit transaction where the deposit is held.

snowcat

https://www.boards.ie/discussion/comment/119644621#Comment_119644621

What a load of malarkey. The seller is not going to be selling at a reduced rate. He will most likely advertise on daft.ie and accept the highest offer which is the market value. The sales process is simple. You lodge a deposit to his solicitor. (Any amount will do say 5k, refundable until contracts are signed) and the solicitors do the rest. You wont get it any cheaper but the seller will save a few grand on an auctioneer. Its usually more efficient than an auctioneer as you have direct contact with the vendor.

airy fairy

Get your solicitor to take over once your offer is accepted. The solicitors will do the job instead of an auctioneer, cutting out the need for payment of an auctioneer, which is good, as they don't do much for their % tbh.

CramCycle

Get your solicitor now, make sure their solicitor has requested deeds etc from the bank as this can take time and let the two solicitors do the back and forth. Your bank if getting a mortgage will have a load of requests, get into them now to see what they want but you'll have a house valuation from them, life assurance and more. Get your own engineer in to give the place the once over (pay the extra and get a through one done unless it's a really new build).

You'd have to this all with an estate agent anyway, provided they don't mess about, it should speed stuff up.

Long story short, once the offer is made and accepted, hand it off to your solicitor and the bank. Deposit which would normally stay with the estate agent will be one of the solicitors, it really doesn't matter which one but probably theirs who will send a letter to yours confirming it is held as such.

Kurooi

Solicitor yes, though a deposit is not a requirement so you as a buyer have no real incentive to bring it up and ask to deposit.

https://www.boards.ie/discussion/comment/119644621#Comment_119644621

If the op is going to live there, what are the tax implications you speak of?

Del2005

https://www.boards.ie/discussion/comment/119647944#Comment_119647944

Not saying that its the OP. But a person might sell a property at a reduced rate to a family member and if its substantially below market rate then Revenue will be looking for the difference between the market price and sale price.

Hontou

I bought directly from an owner. As others stated.....You give the deposit to your solicitor to pass to theirs. Solicitors handle it from there.