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Sale agreed - now what?

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  • 19-03-2013 9:11pm
    #1
    scunners
    Registered Users Posts: 34 ✭


    We are thrilled to have had our offer accepted on a house we love - EA was clearly begrudging about it as he was hoping it would go for more!! They're looking for a substantial booking deposit - wondering what the normal terms of this agreement are at this stage, i.e. what is this actually securing and if we choose not to go ahead with the sale or want to renegotiate based on the survey then what happens? Just want to know what to expect before going back to them if they are going to be prickly!


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    #2
    StillWaters
    Closed Accounts Posts: 1,799 ✭✭✭StillWaters


    What do you mean by substantial? The booking deposit is normally €5k or so.

    This is fully refundable if you back out at any stage prior to exchange of contracts.
    Your next step is to engage a solicitor who will guide you through the process.


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    #3
    Duckjob
    Registered Users Posts: 2,859 ✭✭✭Duckjob


    Booking deposit doesn't secure anything. It's just a statement of intent really.

    It's not until you pay the security deposit (usually around 10% of sale price AFAIR) and at the same time exchange signed contracts that you're both locked into it.


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    #4
    Duckjob
    Registered Users Posts: 2,859 ✭✭✭Duckjob


    As StillWaters said now is the time to engage your solicitor.

    Survey etc should all happen before you sign on the dotted line, and if a survey turns up anything potentially costly you should re-negotiate on the price.


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    #5
    Strong arm
    Closed Accounts Posts: 19 ✭Strong arm


    scunners wrote: »
    We are thrilled to have had our offer accepted on a house we love - EA was clearly begrudging about it as he was hoping it would go for more!! They're looking for a substantial booking deposit - wondering what the normal terms of this agreement are at this stage, i.e. what is this actually securing and if we choose not to go ahead with the sale or want to renegotiate based on the survey then what happens? Just want to know what to expect before going back to them if they are going to be prickly!

    The amount varies. It depends on the agreed price but a booking deposit of €5000 is fairly common - you can try to negotiate a lower booking deposit. Everything is negotiable before you exchange contracts.
    Usually the booking deposit is held by the estate agent ( or the solicitor, if no estate agent) until the sale is finalised and often their fee is deducted from this amount after closing - this can often dictate the amount sought by the seller/their agent.

    It is a fully refundable deposit as you are not bound into the sale until the contracts are signed, exchanged and the balance of 10 per cent of the purchase price is paid over. In other words, you pay the refundable booking deposit so the property is taken off the market until you have carried out all of the necessary enquiries ( like surveys!) and until your solicitor has checked the title and had any questions answered satisfactorily by the sellers.

    If you decide not to proceed, the money must be refunded to you in full, as long as you pull out prior to exchanging signed contracts and paying the rest of the deposit.

    You can renegotiate if you find something at precontract stage - whether it be a title problem, a survey issue or a planning problem. You can also negotiate on the 10 percent requirement on signing as many sellers will now accept less or just the booking deposit.

    Best of luck !


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