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Trading Up Risks

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  • 05-08-2018 11:42pm
    #1
    GalwayBmw
    Registered Users Posts: 91 ✭✭


    When trading up is there a way to make the sale dependent on the success of the buy? The only reason to sell for me is to buy another property, unless it happens I don't want to sell. How people manage their risks in this case?


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    #2
    3DataModem
    Registered Users Posts: 3,997 ✭✭✭3DataModem


    GalwayBmw wrote: »
    When trading up is there a way to make the sale dependent on the success of the buy? The only reason to sell for me is to buy another property, unless it happens I don't want to sell. How people manage their risks in this case?

    You sign both sets of contracts at the same time. This mostly mitigates the risk. If one side cannot close for some reason (life cover, title) then it’s a bit more complicated. Talk to your solicitor.

    Remember you are not committed until contracts signed.


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    #3
    GalwayBmw
    Registered Users Posts: 91 ✭✭GalwayBmw


    I am aware of binding/non-binding phases, but in an absolute nightmare of a scenario I don't want to end up with a heap of money and hotel leaving - need to understand how can I protect myself against it. Never mind legal issues as they should be cleared before contracts signing, more concerned about human related risks whatever they are driven by.


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    #4
    theboringfox
    Registered Users Posts: 544 ✭✭✭theboringfox


    I think protecting yourself is easier and solicitor will guide you on ensuring contracts both signed at same time. Tougher bit might be the commercial reality. Like you might lose on a good sale or purchase opportunity as can't back to back them. I asked a valuer about it and he said selling up first the most straight forward.


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    #5
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    GalwayBmw wrote: »
    When trading up is there a way to make the sale dependent on the success of the buy? The only reason to sell for me is to buy another property, unless it happens I don't want to sell. How people manage their risks in this case?

    Only sign the contract with your purchaser after the vendor signs the contract with you. You run the risk of your purchaser pulling out so you have to give your vendor tight time frames to return signed contracts,


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