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Waiting to close 8k outstanding on house chain buyers

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  • 19-07-2016 6:59pm
    #1
    sadie1502
    Registered Users Posts: 666 ✭✭✭


    Hi all

    We are so close to closing out on a house sale going on since the end of may but now it comes to light there is 8k outstanding on the house. Not the house we are buying but the one the vendor is buying. This has now just come to light. The person in question who owes the 8k is seeing if they can transfer this to there other house. We are in a chain so this now has just come to light. Is this doable transferring debt to another house. I'm in shock and sick from this. Has anyone any ideas? Thanks for your help I really appreciate it.


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    #2
    Askthe EA
    Registered Users Posts: 724 ✭✭✭Askthe EA


    sadie1502 wrote: »
    Hi all

    We are so close to closing out on a house sale going on since the end of may but now it comes to light there is 8k outstanding on the house. Not the house we are buying but the one the vendor is buying. This has now just come to light. The person in question who owes the 8k is seeing if they can transfer this to there other house. We are in a chain so this now has just come to light. Is this doable transferring debt to another house. I'm in shock and sick from this. Has anyone any ideas? Thanks for your help I really appreciate it.

    Sorry to hear that Sadie. 8k or 80k? It takes a bank an age to make decisions in relation to negative equity but 8k seems like a tiny amount that could be covered by a personal loan. It's very odd.


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    #3
    sadie1502
    Registered Users Posts: 666 ✭✭✭sadie1502


    Askthe EA wrote: »
    Sorry to hear that Sadie. 8k or 80k? It takes a bank an age to make decisions in relation to negative equity but 8k seems like a tiny amount that could be covered by a personal loan. It's very odd.

    Only 8k. Sadly dont know anything more than that if it's a loan against the house or negative equity. I have no clue only that there is 8k outstanding on the house. I'm at a total loss. I don't think it was negative equity as It seems to stem back to 2011. I don't understand really I thought someone might know on boards.


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    #4
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    Never underestimate how disorganised vendors can be, sometimes by design.


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    #5
    irlrobins
    Registered Users Posts: 7,541 ✭✭✭irlrobins


    8K is a very small amount to be delaying a sale. Wonder if this is the start of a gazump where your seller asks you to raise your bid to cover this magical 8K?


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    #6
    sadie1502
    Registered Users Posts: 666 ✭✭✭sadie1502


    They are seeing if this 8k can be transferred onto her other property. I've no idea what is going on. It seems such a small amount to delay a sale. But he told us he is in no rush. We have gone so far in to the sale now how do we recover legal fees I feel we are being totally messes about now. Going to the solicitors to see if they can contact his solicitor to see what is going on.


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    #7
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    You can recover fees etc. I'm afraid. You could sue your vendor for specific performance but it would cost the guts of €20K in fees. Be guided by your solicitor. I'm afraid this sort of messing is not uncommon. Two pieces of advice for anyone buying:

    (i) Keep looking even after you've gone sale agreed, you never know what going to fall through
    (ii) Spend the absolute minimum in outlays - but don't skimp on getting a good solicitor and surveyor/engineer.

    Not much help to you I'm afraid OP :( but perhaps some to anyone else approaching closing. The system in Ireland and England needs a massive overhaul, the Scots can get it right, I've no idea why we can't.


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    #8
    Askthe EA
    Registered Users Posts: 724 ✭✭✭Askthe EA


    MarkAnthony wrote: »
    You can recover fees etc. I'm afraid. You could sue your vendor for specific performance but it would cost the guts of €20K in fees. Be guided by your solicitor. I'm afraid this sort of messing is not uncommon. Two pieces of advice for anyone buying:

    (i) Keep looking even after you've gone sale agreed, you never know what going to fall through
    (ii) Spend the absolute minimum in outlays - but don't skimp on getting a good solicitor and surveyor/engineer.

    Not much help to you I'm afraid OP :( but perhaps some to anyone else approaching closing. The system in Ireland and England needs a massive overhaul, the Scots can get it right, I've no idea why we can't.

    You can only sue for specific performance if a contract is in place. Only being sale agreed, there is no contract in place.


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    #9
    sadie1502
    Registered Users Posts: 666 ✭✭✭sadie1502


    I wouldn't be going down that route. It could all be sorted couldn't it ?


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    #10
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    Askthe EA wrote: »
    You can only sue for specific performance if a contract is in place. Only being sale agreed, there is no contract in place.

    I assumed the OP had a contract in place, If you're just at the sale agreed stage OP keep looking; even if your not serious keep yanking the EAs chain by viewing other properties with them.


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    #11
    sadie1502
    Registered Users Posts: 666 ✭✭✭sadie1502


    It's a private sale. I'm hoping it will all be sorted


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    #12
    mickdw
    Registered Users Posts: 23,360 ✭✭✭✭mickdw


    Sounds very like the non principal private residence tax that was due and not paid but the house would need to date back to start of that scheme in order to owe the maximum fine of 7k+

    Im seeing this happening very very often. Numerous times where the vendors were not even aware of the requirement to pay it. It crops up in lots of circumstances.
    Even though its the owners business to sort this, ive seen a good few examples of both parties splitting it in order to get deal done.
    Buyer would increase offer by 4k and seller would end up with 4k less than originally accepted once 8k paid out.


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    #13
    Askthe EA
    Registered Users Posts: 724 ✭✭✭Askthe EA


    mickdw wrote: »
    Sounds very like the non principal private residence tax that was due and not paid but the house would need to date back to start of that scheme in order to owe the maximum fine of 7k+

    Im seeing this happening very very often. Numerous times where the vendors were not even aware of the requirement to pay it. It crops up in lots of circumstances.
    Even though its the owners business to sort this, ive seen a good few examples of both parties splitting it in order to get deal done.
    Buyer would increase offer by 4k and seller would end up with 4k less than originally accepted once 8k paid out.

    AAAhh, i didnt think of the NPPR. Having said that, normally the sellers solicitors make an undertaking to pay it from the proceeds of the sale. Eitherway, youd think theyd just go get an 8k loan


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    #14
    sadie1502
    Registered Users Posts: 666 ✭✭✭sadie1502


    mickdw wrote: »
    Sounds very like the non principal private residence tax that was due and not paid but the house would need to date back to start of that scheme in order to owe the maximum fine of 7k+

    Im seeing this happening very very often. Numerous times where the vendors were not even aware of the requirement to pay it. It crops up in lots of circumstances.
    Even though its the owners business to sort this, ive seen a good few examples of both parties splitting it in order to get deal done.
    Buyer would increase offer by 4k and seller would end up with 4k less than originally accepted once 8k paid out.

    Thanks. Is that the property tax ? Sorry I'm clueless


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    #15
    mickdw
    Registered Users Posts: 23,360 ✭✭✭✭mickdw


    It was what was referred to as the second house tax and it only ran for a few years. I believe it was 200 per year and existed for 3, maybe 4 years. The fines brought in for non payment were crazy beyond belief resulting is a debt of overr 7k if not paid from the start.


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    #16
    sadie1502
    Registered Users Posts: 666 ✭✭✭sadie1502


    mickdw wrote: »
    It was what was referred to as the second house tax and it only ran for a few years. I believe it was 200 per year and existed for 3, maybe 4 years. The fines brought in for non payment were crazy beyond belief resulting is a debt of overr 7k if not paid from the start.

    Thanks again for your knowledge. Can that be transferred onto the other property?


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    #17
    mickdw
    Registered Users Posts: 23,360 ✭✭✭✭mickdw


    sadie1502 wrote: »
    Thanks again for your knowledge. Can that be transferred onto the other property?

    It has to be paid anyway before the sale or from sale proceeds. How the funds are raised is a completely different issue.


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    #18
    sadie1502
    Registered Users Posts: 666 ✭✭✭sadie1502


    It's a tax to the county council is it ?


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    #19
    mickdw
    Registered Users Posts: 23,360 ✭✭✭✭mickdw


    yep.


    Edit,


    Post below is correct. It was changed over once the scheme finished up I believe.


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    #20
    Marcusm
    Registered Users Posts: 10,339 ✭✭✭✭Marcusm


    sadie1502 wrote: »
    It's a tax to the county council is it ?

    Not anymore, Revenue took over administration and have been much more strict with "exemptions" etc. It will have to be dealt with before sale or else you will not be able to draw down mortgage funds.


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    #21
    sadie1502
    Registered Users Posts: 666 ✭✭✭sadie1502


    The solicitor said it was council she must be behind the times . Thanks for the information


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    #22
    Marcusm
    Registered Users Posts: 10,339 ✭✭✭✭Marcusm


    sadie1502 wrote: »
    The solicitor said it was council she must be behind the times . Thanks for the information

    It was the local councils but when it was scrapped, authority to administer moved to Revenue, a Nenagh office I think.


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    #23
    sunnysoutheast
    Registered Users Posts: 2,072 ✭✭✭sunnysoutheast


    sadie1502 wrote: »
    Only 8k. Sadly dont know anything more than that if it's a loan against the house or negative equity. I have no clue only that there is 8k outstanding on the house. I'm at a total loss. I don't think it was negative equity as It seems to stem back to 2011. I don't understand really I thought someone might know on boards.

    It'll be a weird amount something like E7660. Accumulated outstanding NPPR fees and charges.

    Same thing happened to a young guy in work.Vendor tried to get him to pay it, was told to Foxtrot Oscar.

    Conveyancing solicitor should clear it from proceeds of sale.


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