So a deposit on a house doesn't mean anything?

flanum

i put a holders deposit (i thimk that is what it is called) in an estate agents on a 30-ish yr old bungalow (one grand deposit, he preferred five but i only had one handy.. he was happy with that, the client was happy to sell at the price i offered), while i sorted out getting my loan approved.
a few weeks on and the EA was ringing me asking me how i was getting on with the loan approval etc,and saying there had been a better offer in the meantime, but he was obliged to me as i had paid the deposit. (it was taking a while to sort out the loan), then about 6 weeks into it the EA rang me and said there was a problem with the house, the relations of the person selling apparently were all arguing over as to who actually owned it, rights of way, land, access etc (rural cottage, an inheritance to the seller btw) or at least this is the spiel the EA gave me, and told me unfortunately its been withdrawn from the market.
i have been looking at the property online since (daft.ie) and it hasnt been withdrawn, in fact it has been renewed nearly every day since.
the offer that was accepted originally was 15k under the asking price, im wandering was it just a second thought on behalf of seller/EA to get the original asking price?

so is a deposit not worth jack shoot in ireland?

Sorry to hear that.Estate agents can be shady.Maybe best to stay clear of that particular one if she was willing to lie on behalf of the seller.

Jamar

The deposit is worth nearly nothing. When we were selling, I think there were two deposits paid and withdrawn. I believe that it's there to make sure the EA gets their money in the end.

There is a 10% deposit after the holding deposit, and that's quite binding. Get a friend to ring about the house mind, see if it's on the market still really.

MysticalSoul

Fraid not. Until Contracts are signed, the seller can pull out at any time. It's stupid but there is no law to prevent a seller doing this unfortunately.

seamus

Yep, the deposit is nothing more than an, "I am interested in this property" deposit. It confers no obligations on anyone to do anything.

The IAVI code of conduct requires that an EA withdraw a property from advertising when a deposit is put on it, but the property is still available to be viewed and offers to be made on it.
If the EA isn't a member of IAVI, then the deposit means nothing. Any EA who tells you that a property is withdrawn from the market but then blatantly leaves it up, isn't worth dealing with. In the current market, you're in the position of power, so find a better EA to deal with.

TwoShedsJackson

The deposit is pretty much just a 'gentleman's agreement' that the seller has accepted your offer and the house now comes off the market as the legal process begins. Naturally this doesn't mean jack **** in Ireland so if a better offer does come in etc. and you don't match it, you get your deposit back and that's it. This system is of course open to 'phantom bidders' as the estate agent may (unethically) invent other interested bidders to try and get you to pay another 5k or whatever.

Personally if I start hearing about families members squabbling, land, access rights etc. I'd run a mile. There are plenty of other properties around that won't have these potential hassles.

Patrickof

irishamethyst wrote: »

Fraid not. Until Contracts are signed, the seller can pull out at any time. It's stupid but there is no law to prevent a seller doing this unfortunately.

But it also isn't binding on the purchaser either, they can walk away also.

Agree with the above poster, if there's a family squabble over ownership then stay well away - those things can drag out for years. Given the OP mentions its a 30-ish yr old property this isn't too unlikely. It it being sold by an executor (of a will)?

dats_right

OP you only paid a Booking Deposit, which is fully refundable to either party should either decide to withdraw from the proposed transaction. Put it like this, I'm sure you would have expected your deposit back if you decided to pull-out, say for example if you couldn't get loan approval. Anyway, I don't understand why it took a "few weeks" to sort out your loan approval, because frankly if you were so eager to purchase you really should have been pushing harder to get your loan offer, thereby allowing you to sign contract and pay full contract deposit. Anyway, the point is moot really as the familial dispute probably would have delayed matters, anyway lesson learnt as they say!

As other posters have quite rightly pointed out, had you paid a full the full deposit of usually about 10% and signed contracts then you would have able to enforce your legally binding agreement.

tHE vAGGABOND

When you sign contracts, you pay the 10% deposit - thats the 'real' deposit..

flanum

understood, and thanks.
the reason im having problems over the loan approval is because i let a credit card go over 1k in arrears about 5 years ago (which was subsequently paid back in full plus interest etc). i checked with ICB but they it doesnt show up on their search, so ive resorted to writing a letter to try to explain this credit glitch.

snellers

IMO - get the mortgage in principal agreed prior to house hunting any further....there would be nothing worse than finding your dream home only to be thwarted by the banks......once you have it in principal the difficult part is over and you can enjoy the house hunt! (and you are in a much stronger position to negotiate as you have a provisionally agreed figure and no guesswork of what you can borrow is needed)

best of luck!

SarahMc

If there really is a problem with probate, walk away gladly as this will take months and months.

If the seller is being underhand (can't see why EA would renage, they are glad of ANY sale in this market). Bide your time, it may very well still be available in a couple of months. Even if it is not - hey its your market!