Buying a home

Sarah134

Hi,

I was one day away to sign the contracts. The estate agency called me and said the buyer is going to pull out unless, I hand them 5K in cash today. I got a receipt. They don’t want this declared to the our solicitor.

All documents are issues with the price already agreed.

Does anyone have experience with this ?

CPTM

I wouldn't do it. All communication through your solicitor from now on. If this is a real scenario of course.

Sarah134

It’s very much a real scenario. I will update when I’ve heard more. Reading into the legalities on Monday. Just needed to ask has anyone had a situation similar.

KillerShamrock

This sounds dodgy af, any estate agent that's self respecting would tell the vendor to go and swim it's not worth losing a sale that late in the process for 5k. Sounds like it's the estate agent is pulling a fast one to me, with the whole keep it away from the solicitor bit. Don't pay them and if the deal gets sealed re the house report them to the psra and yes say it to your solicitor and they will say it to the other sides solicitors too. Is there no come back if the seller pulls a stunt like that?

Allinall

What did you get a receipt for?

Did you actually hand over €5k in cash?

Today is Saturday. Did you happen to have €5k in cash just lying around?

I smell BS.

Sarah134

The sale price was agreed and all documents in place. We have our contracts signed and I have emailed the prsa to get clarification on this. I want the house so we will finish the sale and look for an investigation into this. This was money we didn’t budget for and had to borrow from family.

walterking

Complete bullsh1t

Estate agent running risk of losing their license and a massive fine.

Allinall

https://www.boards.ie/discussion/comment/119925510#Comment_119925510

So you want this house, but the buyer wants €5k in cash off you.

Are you trying to scam yourself?

Sarah134

The money went to the estate agents, I received a receipt. It’s a third party that has the money so it didn’t go directly to the seller.

Allinall

No . Still not making any sense.

Are you buying or selling the house?

Sarah134

Buying the house. Ask questions away. I really wish I was making this up or I wouldn’t be asking for peoples experience with estate agents

herbalplants

Sarah is this happening in Dublin!!

To be honest, the vendor or estate agent is playing at your heart strings.

Did you offer asking price for this house?

How do you know these won't walk away with 5k and sale will fall through anyway. Too risky

kaymin

If the contracts are signed then they can't pull out of the sale even if you didn't pay the 5k. Madness for you to pay it. Regardless I wouldn't pay it on principle. The markets may well take a tumble next year so sellers aren't necessarily in the driving seat any longer.

I can't see the PRSA getting involved - it's your choice whether to pay it or not. They haven't done anything illegal.

Sarah134

the 5K is in the estate agents with a receipt and just like the booking deposit. If the buyer pulls then it has to be returned.

i gave the asking price, I did everything and I even have the contact signed. They threatened to refuse to sign the contract unless I give them more money(again money is with the estate agent with a receipt)

i asked for a receipt to go to my solicitor and I was told that the money given is to keep the seller happy. The solicitor can’t be notified as the contracts will need to be amended and this would delay things further.

i did call the solicitor but they were unavailable as it was close to the closing time on Friday. I explained the situation to the secretary and she did state that the practice is illegal.

Awaiting Monday to know more and if the contract will be signed by the seller.

This is a mess and no not the Dublin area. Tipperary area.

Allinall

What price is stated on the contract you signed?

If the seller wants an extra €5k, then their solicitor needs to issue a new contract.

Your solicitor should know all this stuff.

herbalplants

https://www.boards.ie/discussion/comment/119925722#Comment_119925722

You must really love this house, must be something special if you went ahead with it. This is outrageous way of subtracting money from the buyer.

Sarah134

As such the illegal part the money must be declared with the sale of a house. I am hoping the solicitor can deduct it as part of the deposit as they haven’t issued a new contract with the new sale price. The contract that was signed has the agreed price in place. As I see it we refuse to give the 5K more and give our receipt to show it was given. There’s nothing in writing stating the new house price.

we need this house, fighting for a home for 6 months in this market has been mental

kaymin

https://www.boards.ie/discussion/comment/119925760#Comment_119925760

Fair enough but they haven't done anything illegal yet and who is to say they won't treat the 5k as a non-refundable deposit if it all falls apart.

Sarah134

Estate agents have to return all funds that are given If a sale falls through as this is not legally binding until the seller signs the contract. Unless they amend the contact to state the higher asking price. We will be leaving them short of 5K which we can prove was given.

kaymin

https://www.boards.ie/discussion/comment/119925817#Comment_119925817

You are probably right but just playing devils advocate:

There are however three scenarios where the deposit paid is not refundable. The first is where an agreed “non-refundable” deposit is paid as part of a private treaty sale. This would have to be agreed by all parties during the negotiations. In my experience this is a rare occurrence that only arises in exceptional circumstance. It is worth noting that on most occasions, a purchaser’s solicitor would advise against paying a non-refundable deposit.

https://www.irishtimes.com/life-and-style/homes-and-property/we-ve-gone-sale-agreed-can-we-keep-the-buyer-s-deposit-if-they-pull-out-1.4309679

If the deposit was made to 'keep the vendors sweet', they could make an argument that it was non-refundable.

Sarah134

The receipt states the money is for the purchase of the property with the address thrown in. We could easily argue it was part of the booking deposit in showing we are serious about buying the property. The receipt doesn’t state it was non refundable deposit. Unless said other wise it has to be returned if they pull out.

ted1

Is it a forced sale? Bank takes all proceeds and the 5k. Is all the sellers will walk away with

Sarah134

No the person buying it has no mortgage this is money they want as the process was to slow for them

lau1247

Sucks to be them then.

contract not updated (per the estate agent request), you have receipt to show the extra 5k you paid. Seems to me that you can deduct from final price and they will have no come back at all now since you have already signed and locked in.

Sarah134

That’s what I’m hoping as there’s no legal standing for me to pay any more than the price agreed

Marcusm

https://www.boards.ie/discussion/comment/119925722#Comment_119925722

If your solicitor is willing to acknowledge this receipt and not to notify the other solicitor then I would not deal with them. They can turn a blind eye to things of which they do not have official notice but not if they are on notice.

Sarah134

i will be notifying the solicitor that additional funds were given to the sellers estate agent once the selling contract has been signed. There not getting a euro more than what they asked for.

herbalplants

https://www.boards.ie/discussion/comment/119927113#Comment_119927113

Good woman, don't give them a penny more!!

Former Former Former

https://www.boards.ie/discussion/comment/119926765#Comment_119926765

Contract isn't signed though. Vendor can up the price, walk away, or call this 5k an additional selling expense due to buyer delays and the OP can't do a thing about it.

Sarah134

Contract was signed today. Turns out as it’s the agreed price and nothing was changed. Im not obligated to give any more.

herbalplants

https://www.boards.ie/discussion/comment/119933131#Comment_119933131

Yuppie, well done Sarah

spaceHopper

Be careful here it sounds like the 5k cash is on top of the agreed price. They will probably look sale agreed price + the 5k. You were called late on a Friday so that you couldn't get your solicitor, and close to signing to keep the pressure on you. Something like this happens, take a breath and say to the EA, how are your google reviews, would you like me to add one?

Sarah134

The solicitor will use the cash agreement as part of the booking deposit. As all proceeds must be account for in the sale of a house. We are waiting for this to finish and our solicitor will issue a complaint to the psra on our behalf. What was done is completely illegal.

herbalplants

https://www.boards.ie/discussion/comment/119940365#Comment_119940365

https://www.boards.ie/discussion/comment/119939353#Comment_119939353

https://www.boards.ie/discussion/comment/119933131#Comment_119933131

Well done Sarah.

That brings me back the old argument, some people say that agents will never do anything illegal.

Proves the point estate agents are manipulative individuals.