Selling property before completion

T

The Machine

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Hi all,

I searched for similar posts but couldn't find any but if this subject is already covered, feel free to point me in the right direction.

My sister has put down her deposit on her first property, an apartment in Kilkenny. The property is now almost ready but due to a change in personal circumstances she now needs to buy closer to home in Dublin.

So what are her best options for getting rid of the apartment in Kilkenny? I presume she will loose her deposit if she pulls out completely? Can she sell on the apartment at the current market value (the price has risen 20k) without moving in, would she would still be considered a first time buyer?

Thanks in advance
 
Has she checked her contracts with her solicitor? Most developers have a clause in contracts that prevent purchasers from doing exactly as you describe.....
 
Search for previous threads on "flipping". As mentioned above most developers have clauses in the contract preventing this and even if it is possible there are most likely significant tax implications.
 
Thanks for the comments. Her solicitor is currently checking out her contract...

So assuming she cannot "flip" the property, would builders/estate agents be likely to give back the deposit and sell the house on to someone else? Advantage to them is that they could sell it at a higher price, the downside is the hassle involved.

The other option is to complete the purchase. If she completed the deal but didn't move in, would the property still be considered as new for a potential buyer?

Does anyone have experience of buying and then selling up immediately. I'd imagine with the costs involved you'd be doing well to break even?
 
Yes - I did - there was a clause in the contract that prevented me from selling on prior to it being completed. I rang the builder and asked if I could pay a penalty to get out of this. The builder agreed and I sold it on.
 
I would say that if there is a strong demand in the development (a waiting list even) there is a good chance the developer will take it back at no penalty and sell it on.
 
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