Booking Deposit

[niallkelly14]

Hi

a bit of a novicey question but i would just like to clarify the following

we have gone sale agreed to buy a house today and the EA has asked for a 5k booking deposit - am i correct in assuming that this deposit is fully refundable at all stages until the signing of contracts.

Also on signing of contracts i assume this is when the 10% is paid over - is this 5k booking deposit then deducted from the 10% payable at that stage

thanks for the help

 

[Vanilla]

we have gone sale agreed to buy a house today and the EA has asked for a 5k booking deposit - am i correct in assuming that this deposit is fully refundable at all stages until the signing of contracts.

Yes.

Also on signing of contracts i assume this is when the 10% is paid over - is this 5k booking deposit then deducted from the 10% payable at that stage

Yes.

 

[niallkelly14]

thanks vanilla

also the only slight doubt i see are the dreaded cracks so we are getting a surveyor in to see this

in relation to this do we have to get an official surveyor report (for mortgage purposes) or can i just get a friend of mine to come in and take a look around and tell me exactly what i need to know rather than a long winded reprt from some surveyor

 

[Dreamerb]

You'll need a valuation for the mortgage (usually around €130-150), but won't, unless the valuer sees something very worrying, require a full structural survey for the mortgage.

That said, unless your friend is a qualified engineer or surveyor, I really would advise getting a structural survey (generally region €300-400) - while it's a pain to incur the cost, it's a lot better to pay the money now, rather than run into significant unanticipated costs after you've bought the house and will more than likely be low on funds. Check if your lender has a panel of valuers who are also qualified to carry out this work, and you may be able to get the survey and valuation for little more than the survey cost.

Best of luck!

 

[niallkelly14]

thanks dreamerb

my friend is a qualified engineer but i was going to ask the bank anyway re a surveyor they would recommend

 

[niallkelly14]

hi

one final query on booking deposits. when we pay this next week does this effectively remove the property from the market - ie the EA cant continue to show it to other people hoping for a higher bid than ours

Are they bound by any code of ethics or anything

thanks again

 

[Dreamerb]

Are they bound by any code of ethics or anything

Estate Agents? Code of ethics?! You're kidding...

Seriously, that should secure the property for you and very usually will - but unfortunately, some vendors and some estate agents will allow a property to stay on the market, on the basis that there's a bird in the hand, but there might be a couple in the bush if they shake it hard enough. If you're really worried, do put the question bluntly to the estate agent - ask if the house is now off the market. Most EAs and most vendors are honest most of the time, in which case you'll get a "Yes of course" and a faintly insulted air - but if you get an "Hmm, well, yes, I suppose" you'll know you have to move fast to ensure you secure it.

 

[niallkelly14]

thanks again, that was the answer i was expecting. i fully intend asking that question on paying the booking deposit - dont really care if they are offended, at the end of the day they are working for vendor and not for me

 

[OCD]

You'll need a valuation for the mortgage (usually around €130-150), but won't, unless the valuer sees something very worrying, require a full structural survey for the mortgage.

That said, unless your friend is a qualified engineer or surveyor, I really would advise getting a structural survey (generally region €300-400) - while it's a pain to incur the cost, it's a lot better to pay the money now, rather than run into significant unanticipated costs after you've bought the house and will more than likely be low on funds. Check if your lender has a panel of valuers who are also qualified to carry out this work, and you may be able to get the survey and valuation for little more than the survey cost.

Best of luck!

just to follow up on this....i presume you are buying a 2nd hand house in which case you should definitely get a structural report done. they seem pricey for what they are but there is a professional indemnity insurance behind the report which is not obvious to the casual observer. don't use your friend to do the survey unless he is a structural engineer and has experience in this field. he might be doing you a favour but he could end up missing something if he doesn't know the warning signs.

also, if the house is less that 10 years old, check if it is still covered under the Homebond 10 year guarantee.

finally, always check quoted fees for VAT! ask for the VAT inclusive price.

best of luck with your new house!

Dave.
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