Buying with cash

funkyuser · 15-01-2019 12:31pm #1

In the process of buying a house with 100% cash. I’ve paid booking deposit and additional deposit and have signed contracts. (Don’t know if the vendor has signed yet.)

One of these days I expect I’ll be asked to pay the final outstanding amount for the agreed price. I’m told the payee of the bank draft should be my solicitor, who will then pay the vendor of the house when the time comes.

I’m concerned about risks of giving my cash to the solicitor. If I paid the vendor directly at least I can pursue them for the house in some unfortunate scenario.

daheff · 15-01-2019 12:33pm

what will happen is that you will transfer the funds to your Solicitors Client account and he will make the payment from that account to the vendor's solicitors account.

Client account (in theory) makes your funds safer as his funds are not co-mingled with yours.

whippet · 15-01-2019 12:33pm

funkyuser wrote: »

I’m concerned about risks of giving my cash to the solicitor. If I paid the vendor directly at least I can pursue them for the house in some unfortunate scenario.

you'd have an easier time getting money back from a solicitor rather than a stranger should something go wrong.

If you don't trust your solicitor - go find another you do trust.

handlemaster · 15-01-2019 12:35pm

funkyuser wrote: »

In the process of buying a house with 100% cash. I’ve paid booking deposit and additional deposit and have signed contracts. (Don’t know if the vendor has signed yet.)

One of these days I expect I’ll be asked to pay the final outstanding amount for the agreed price. I’m told the payee of the bank draft should be my solicitor, who will then pay the vendor of the house when the time comes.

I’m concerned about risks of giving my cash to the solicitor. If I paid the vendor directly at least I can pursue them for the house in some unfortunate scenario.

more risk giving it to the client. doesnt make any sense you would do this.

NSAman · 15-01-2019 12:36pm

funkyuser wrote: »

In the process of buying a house with 100% cash. I’ve paid booking deposit and additional deposit and have signed contracts. (Don’t know if the vendor has signed yet.)

One of these days I expect I’ll be asked to pay the final outstanding amount for the agreed price. I’m told the payee of the bank draft should be my solicitor, who will then pay the vendor of the house when the time comes.

I’m concerned about risks of giving my cash to the solicitor. If I paid the vendor directly at least I can pursue them for the house in some unfortunate scenario.

You can pursue your own solicitor and also the vendor, if all is not done in accordance with the contracts....I’m surprised the solicitor will accept all cash. Has he asked you to sign the anti-money laundering form? I recently paid a large proportion of a property in cash and had to show how it was earned.

lawred2 · 15-01-2019 12:37pm

funkyuser wrote: »

In the process of buying a house with 100% cash. I’ve paid booking deposit and additional deposit and have signed contracts. (Don’t know if the vendor has signed yet.)

One of these days I expect I’ll be asked to pay the final outstanding amount for the agreed price. I’m told the payee of the bank draft should be my solicitor, who will then pay the vendor of the house when the time comes.

I’m concerned about risks of giving my cash to the solicitor. If I paid the vendor directly at least I can pursue them for the house in some unfortunate scenario.

don't do that

realdanbreen · 15-01-2019 12:39pm

funkyuser wrote: »

In the process of buying a house with 100% cash. I’ve paid booking deposit and additional deposit and have signed contracts. (Don’t know if the vendor has signed yet.)

One of these days I expect I’ll be asked to pay the final outstanding amount for the agreed price. I’m told the payee of the bank draft should be my solicitor, who will then pay the vendor of the house when the time comes.

I’m concerned about risks of giving my cash to the solicitor. If I paid the vendor directly at least I can pursue them for the house in some unfortunate scenario.

When you say 'buying for cash' are you talking about a huge wad of €50's & €100 notes?

Cuddlesworth · 15-01-2019 12:42pm

funkyuser wrote: »

In the process of buying a house with 100% cash. I’ve paid booking deposit and additional deposit and have signed contracts. (Don’t know if the vendor has signed yet.)

One of these days I expect I’ll be asked to pay the final outstanding amount for the agreed price. I’m told the payee of the bank draft should be my solicitor, who will then pay the vendor of the house when the time comes.

I’m concerned about risks of giving my cash to the solicitor. If I paid the vendor directly at least I can pursue them for the house in some unfortunate scenario.

If you were buying with a mortgage, at purchase the bank would transfer the funds to your solicitor when requested and would refuse to give the funding to you.

Graham · 15-01-2019 12:48pm

funkyuser wrote: »

I’m concerned about risks of giving my cash to the solicitor. If I paid the vendor directly at least I can pursue them for the house in some unfortunate scenario.

Would you rather pursue the vendor, or the solicitor/law society compensation fund?

Edgware · 15-01-2019 1:45pm

You wont be bringing a black bag of cash into the solicitor. You will be making an electronic transfer to his client account. You then have protection under Law Society regulation. Transfer to the vendor and anything could happen.

realdanbreen · 15-01-2019 1:51pm

Edgware wrote: »

You wont be bringing a black bag of cash into the solicitor.

Sounds like he will though, why else would he say he was paying 100% cash?

zl1whqvjs75cdy · 15-01-2019 2:00pm

realdanbreen wrote: »

Sounds like he will though, why else would he say he was paying 100% cash?

Solicitor might start asking awkward questions if that's the case

Steer55 · 15-01-2019 2:12pm

He has to be making bank transfer, doubt if any solicitor will take hundred s of thousands in cash. He will also have to satisfy money laundering legislation.

tricky D · 15-01-2019 2:39pm

realdanbreen wrote: »

Sounds like he will though, why else would he say he was paying 100% cash?

Not really. Cash buying in property is a misnomer for buying with a full lump sum. Nothing to do with physical cash unless the party is bonkers or dodgy. (Not suggesting any such with the OP)

Putting funds in the client account is much less risky than pretty much any other method and affords extra protections. Also a solicitor will have transfer limits way above a regular punter.

OP needs to trust their solicitor and the process but do keep up with matters.

Dial Hard · 15-01-2019 3:15pm

realdanbreen wrote:

Sounds like he will though, why else would he say he was paying 100% cash?

A cash purchase doesn't mean actual paper money, it just means the buyer isn't using a mortage or other loan secured on the house to buy it.

NSAman · 15-01-2019 3:18pm

Dial Hard wrote: »

A cash purchase doesn't mean actual paper money, it just means the buyer isn't using a mortage or other loan secured on the house to buy it.

It can also mean cold hard cash.

Pawwed Rig · 15-01-2019 3:23pm

Reminds me of Naked Camera where PJ Gallagher walked into the estate agent with a plastic bag crammed with cash and said he wanted a house.

cruizer101 · 15-01-2019 3:36pm

NSAman wrote: »

It can also mean cold hard cash.

Yeah but realistically for a house its not going to be. Who is going to accept a 6 figure sum in bank notes?

When talking about cars it is a bit more ambiguous as amounts of a few grand could be finance, cash (bank draft/cheque) or cash (bank notes)

Dial Hard · 15-01-2019 3:42pm

NSAman wrote:

It can also mean cold hard cash.

No vendor is going to accept a duffle bag of actual cash unless they're as dodgy as a buyer who would have that much actual cash in the first place.

Liquid assets in that amount very rarely change hands the form of actual cold, hard cash. Legitimately, anyway.

DJIMI TRARORE · 15-01-2019 3:47pm

OP,I hope ur not based in Ballaghadreen,:)

Jet Black · 15-01-2019 3:48pm

cruizer101 wrote: »

Yeah but realistically for a house its not going to be. Who is going to accept a 6 figure sum in bank notes?

The answer is no-one. Even going to buy a car with 5k+ in cash some places will be reluctant to hold it because the risk they could be robbed.

BrokenArrows · 15-01-2019 3:58pm

haha. Sounds like when my parents went to my Grandaunt for a loan to help buy their first house. She agreed and immediately went upstairs and came back with a black bag of cash. They were shocked to say the least.

NSAman · 15-01-2019 4:01pm

Dial Hard wrote: »

No vendor is going to accept a duffle bag of actual cash unless they're as dodgy as a buyer who would have that much actual cash in the first place.

Liquid assets in that amount very rarely change hands the form of actual cold, hard cash. Legitimately, anyway.

You would be surprised how many transactions are done in cash....as am I.

I honestly do not know how these transactions are done and what solicitor performs such transactions.

I know I had cash to purchase a house (years and years of savings) and transferred it to my solicitor in Ireland. I still had to prove where these funds came from....

There are some "strange" solicitors who will do the cash thing still out there...and asking my mate since a kid (who is my solicitor) it is mostly shall we say, our "country cousins" who purchase in cold cash.

funkyuser · 15-01-2019 4:12pm

realdanbreen wrote: »

When you say 'buying for cash' are you talking about a huge wad of €50's & €100 notes?

i'll be paying with bank draft ( said so in original post

)

edit - sorry to all for the confusion, maybe i should have used the common phrase "cash buyer" instead

Graham wrote: »

Would you rather pursue the vendor, or the solicitor/law society compensation fund?

Thanks this is the kind of informed input I needed.

https://www.lawsociety.ie/Public/Compensation-Fund/

I skimmed that page, does it mean I'm 100% covered by the fund? I'll read up on it fully if i have to.

Edgware wrote: »

You wont be bringing a black bag of cash into the solicitor. You will be making an electronic transfer to his client account. You then have protection under Law Society regulation. Transfer to the vendor and anything could happen.

I prefer bank draft, I think that theres much less that can go wrong.

donkeyoaty0099 wrote: »

Solicitor might start asking awkward questions if that's the case

Steer55 wrote: »

He has to be making bank transfer, doubt if any solicitor will take hundred s of thousands in cash. He will also have to satisfy money laundering legislation.

Solicitor did ask me to provide evidence, but I never provided it (I'm lazy) and but he never asked again about it. I signed a contract with solicitor to engage him, but never remember seeing anything about anti money laundering.

(btw I have provided full evidence and financial records to my accountant and I am fully tax compliant, theres nothing illegal or dodgy happening here )

tricky D wrote: »

Not really. Cash buying in property is a misnomer for buying with a full lump sum. Nothing to do with physical cash unless the party is bonkers or dodgy. (Not suggesting any such with the OP)

Putting funds in the client account is much less risky than pretty much any other method and affords extra protections. Also a solicitor will have transfer limits way above a regular punter.

OP needs to trust their solicitor and the process but do keep up with matters.

Solicitor was recommended by family and is listed on the law society website and is doing business for many years in my locality ...I guess thats all the due dilligence I have to do ...i hope?

DJIMI TRARORE wrote: »

OP,I hope ur not based in Ballaghadreen,:)

No I'm not based there, at the risk of thread drift I wouldnt mind hearing that story

thanks for the replies everyone

realdanbreen · 15-01-2019 5:09pm

NSAman wrote: »

You would be surprised how many transactions are done in cash....as am I.

I honestly do not know how these transactions are done and what solicitor performs such transactions.

I know I had cash to purchase a house (years and years of savings) and transferred it to my solicitor in Ireland. I still had to prove where these funds came from....

There are some "strange" solicitors who will do the cash thing still out there...and asking my mate since a kid (who is my solicitor) it is mostly shall we say, our "country cousins" who purchase in cold cash.

Know quite a few 'country cousins ' who had the last laugh when they still had their savings after the crash when the more 'sophisticated' savers lost everything by investing their savings on the advice of some jumped up financial advisor in a pencil skirt and sunglasses resting on her hair!

Graham · 15-01-2019 5:14pm

funkyuser wrote: »

Thanks this is the kind of informed input I needed.

https://www.lawsociety.ie/Public/Compensation-Fund/

I skimmed that page, does it mean I'm 100% covered by the fund? I'll read up on it fully if i have to

You'll certainly be more covered than if the vendor vanishes with your hard-earned.

NSAman · 15-01-2019 5:16pm

realdanbreen wrote: »

Know quite a few 'country cousins ' who had the last laugh when they still had their savings after the crash when the more 'sophisticated' savers lost everything by investing their savings on the advice of some jumped up financial advisor in a pencil skirt and sunglasses resting on her hair!

Whoooosh!

Marcusm · 15-01-2019 6:27pm

NSAman wrote: »

It can also mean cold hard cash.

Try and find a professional in Ireland who will accept more than €10,000 in cash and you’ll find only dodgy people.

funkyuser · 16-01-2019 3:57am

https://www.lawsociety.ie/globalassets/documents/regulation/guidelines-cf.pdf

I read that document and noted a few things:

To get a pay out from the fund I must have
"sustained a loss in consequence of dishonesty on the part of that solicitor ..."

I have to claim within 6 months

Can claim a maximum of 700k

Claim can be rejected for a few reasons, including if
"the loss arose due to a solicitor’s negligence and/or breach of contract alone."

So this insurance fund only covers dishonesty and not negligence. Doesn't seem quite adequate to me, but not having much experience in these matters I struggle to imagine the scenarios where I might get a payout or not.

4ensic15 · 16-01-2019 10:15am

funkyuser wrote: »

https://www.lawsociety.ie/globalassets/documents/regulation/guidelines-cf.pdf

I read that document and noted a few things:

To get a pay out from the fund I must have
"sustained a loss in consequence of dishonesty on the part of that solicitor ..."

I have to claim within 6 months

Can claim a maximum of 700k

Claim can be rejected for a few reasons, including if
"the loss arose due to a solicitor’s negligence and/or breach of contract alone."

So this insurance fund only covers dishonesty and not negligence. Doesn't seem quite adequate to me, but not having much experience in these matters I struggle to imagine the scenarios where I might get a payout or not.

If you lose through negligence, you can sue the solicitor. Solicitors are, in theory, supposed to have professional indemnity insurance. If you give a solicitor money to pay for a house and he uses it to go on a drunk filled gambling binge, that is dishonesty and the Law Society fund will cover it. If the solicitor buys the house but doesn't check the title properly and someone turns up claiming to be the owner and sues you and gets you out of the house, that is negligence and you sue the solicitor.
It is better to get an honest competent solicitor from the start.

Graham · 16-01-2019 10:50am

funkyuser wrote: »

So this insurance fund only covers dishonesty and not negligence. Doesn't seem quite adequate to me, but not having much experience in these matters I struggle to imagine the scenarios where I might get a payout or not.

That sounds an order of magnitude better than the level of protection you'll have if you hand the vendor a lump of money.

Long established practice is you pay via your solicitor. Rarely does that go wrong and if it does you can pursue your solicitor, their insurers, the law society.

Pay the vendor directly, if something goes wrong you're on your own.

Take your pick.

Buying with cash

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