How much is the Deposit for a second hand house and can the Sellers avail of it after fees?

Angeleena · 25-06-2024 6:16pm #1

Just suppose a house was E500,000.

Does that mean that 10% must be paid to the Estate Agent i.e. E50,000?

Or does it depend on the different Estate Agents?

Also once the Estate Agent has taken his/her fee then the remainder is paid to the solicitor.

So if any money is remaining after the solicitor has taken his/her fee can the sellers receive this money to help with bills, removal companies, etc.

extra-ordinary_ · 25-06-2024 6:31pm

https://www.boards.ie/discussion/2058357296/how-much-is-the-deposit-for-a-second-hand-house-and-can-the-sellers-avail-of-it-after-fees

Are you buying or selling?

Geuze · 25-06-2024 6:34pm

If you are the seller, you won't get any proceeds until any the sale has closed.

The 10% deposit is paid by the buyer, via their sol, to the vendor's sol.

Angeleena · 25-06-2024 6:48pm

https://www.boards.ie/discussion/comment/122303429#Comment_122303429

Even after the contract has been signed and everyone has their fee?

25-06-2024 7:24pm

When I bought and sold it was:

Booking Fee of around €10k paid to estate agent when going sale agreed.

Balance of deposit to sellers solicitors when signing contracts.

Then once closed, estate agent deducts their fee from the 10k and transferred it.

Solicitors deduct stamp duty, fees etc from their balance and transfers remainder

cython · 25-06-2024 7:29pm

https://www.boards.ie/discussion/comment/122303476#Comment_122303476

Even then, as the property isn't sold until it's sold (subject to finance clauses, it could burn down of a sudden leaving nothing to sell, etc.). So the vendor can't spend the purchase funds until the transaction closes and it's become their money rather than the buyer's money.

Geuze · 26-06-2024 12:09am

https://www.boards.ie/discussion/comment/122303476#Comment_122303476

At the signing of the contract, the buyer pays 10% deposit, to the vendor's sol.

The closing date is later.

My sol told me that if everybody works together, the closing date could be very soon after signing of contracts.

In my case, I think it was a week later.

At the closing date, the buyers sol transfers the large amount to the vendors sol.

Soon after that, my sol sent me the final settlement.

It was a document listing the sales receipts, less fees like estate agent and sol, etc.

The balance was paid to me, the vendor.

Geuze · 26-06-2024 12:11am

https://www.boards.ie/discussion/comment/122303476#Comment_122303476

Everybody has not been paid at contract signing stage.

Blind As A Bat · 26-06-2024 5:05am

There are two stages in the sale or purchase of a house. Sale agreed and completion. You pay the deposit at sale agreed stage when you agree to buy/sell the house. The seller does not get the deposit money. It's held by the agent. If you're buying from a private seller without an agent, a solicitor should hold the money while contracts are being drawn up for completion of the sale. You should each have your own solicitor and they act in your interests to protect you.

The deposit doesn't have to be a specific amount. You can agree just a few thousand euros if it's going to the agent. It's usually more if it's going to a solicitor.

Drawing up contracts for completion can take a while because a 'search' has to be done by the purchaser's solicitor to make sure that everything is in order with the property. Also it allows time to have a survey done, finalize any mortgage etc.

On the day of completion, the purchaser pays the balance of the price of the house and it goes to the solicitor who transfers it to the seller after deducting his/her fees.

If you're from mainland Europe you may be accustomed to the system where the seller gets the deposit and can spend it :) and there is no need for a solicitor, just a notary.

Angeleena · 26-06-2024 5:51pm

"If you're from mainland Europe you may be accustomed to the system where the seller gets the deposit and can spend it :) and there is no need for a solicitor, just a notary."

That is what I was thinking thanks. A guy I know was able to avail of the deposit when he sold his first house as he needed the money for a deposit to rent somewhere and removal vans, storage etc.

Weird that if the money is just sitting there the sellers can't avail of it even if every other party has taken their fees.

L1011 · 26-06-2024 5:57pm

https://www.boards.ie/discussion/comment/122307411#Comment_122307411

Its not weird that you can't spend money that isn't actually yours yet.

Angeleena · 26-06-2024 6:14pm

https://www.boards.ie/discussion/comment/122307432#Comment_122307432

Sorry I meant if the contracts are signed and the rest has yet to be paid over but the deposit is actually paid over.

L1011 · 26-06-2024 6:36pm

https://www.boards.ie/discussion/comment/122307491#Comment_122307491

That really does not mean the sale is going to go through, in Ireland.

Its not your money til closing.

Geuze · 26-06-2024 10:21pm

https://www.boards.ie/discussion/comment/122307491#Comment_122307491

When the buyer signs the contract, they pay the balance of 10% deposit to their sol, who passes it to the vendor's sol.

That money is not paid to the vendor, at that stage.

Blind As A Bat · 27-06-2024 4:24pm

https://www.boards.ie/discussion/comment/122307411#Comment_122307411

"Weird that if the money is just sitting there the sellers can't avail of it even if every other party has taken their fees."

I think you're a bit confused about how the process works. Nobody has taken any fees. Nobody gets any money until the day the keys are handed over. This might help you to understand:

https://www.citizensinformation.ie/en/housing/owning-a-home/buying-a-home/steps-involved-buying-a-home/#:~:text=The%20legal%20process%20to%20buy,you%20with%20a%20loan%20pack.

ted1 · 27-06-2024 11:32pm

A deposit is what ever agreed upon by both parties.

How much is the Deposit for a second hand house and can the Sellers avail of it after fees?

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