Buying off the plans

Hello I have an option with a reputable builder to purchase off the plans. I would really like to pay deposit and then sell when they come online. This is in Ireland. I would like to know how exactly does this work. Could someone please give me their knowledge and time. Thank you

you choose your property, you pay a holding deposit of normally 2-3k and they hold it for you for 2-4 weeks. You give them your solicitors name and they forward the contract to them. Once the solicitor receives the contract and you prove you have mortgage approval and they are happy with the contract, you go in to sign the contract, pay the balance of normally 10% of the house price and sit & wait until your house is completed.

elearning said:

Hello I have an option with a reputable builder to purchase off the plans. I would really like to pay deposit and then sell when they come online. This is in Ireland. I would like to know how exactly does this work. Could someone please give me their knowledge and time. Thank you

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Last response was not correct.
What you planning to do is sell on your option to purchse this property to another party without completing the sale yourself. This is called assignment. Note that unless your contract specifically says you can do this-you will need the permission of the developer. Either way you must take legal advice on this. Its not all plain sailing. Some people have turned a decent profit doing this but its not without risk to you-if property prices fall below the price you have agreed to pay,you make a loss.

elearning said:

Hello I have an option with a reputable builder to purchase off the plans. I would really like to pay deposit and then sell when they come online. This is in Ireland. I would like to know how exactly does this work. Could someone please give me their knowledge and time. Thank you

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If you do a search for 'flipping' you will get plenty of in info.

apologies, didn't read op properly....

elearning said:

Hello I have an option with a reputable builder to purchase off the plans. I would really like to pay deposit and then sell when they come online. This is in Ireland. I would like to know how exactly does this work. Could someone please give me their knowledge and time. Thank you

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This only works in a market that is rising fast; conversely it works against you in a market that is static or falling. You need to take a hard look at all indicators and decide whether we will be in a rise or fall situation at the time of closing.

undersupply said:

You will then lose your deposit, and the developer may sue you to get the rest of the money, i.e you could lose any property you have already.

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Normally you should only lose your deposit. Make sure that there is no penalties other than loss of deposit if you do not proceed with the purchase. Your solicitor should advise you on this.

You should pay careful attention to auot320's comments on indicators

"Normally you should only lose your deposit. Make sure that there is no penalties other than loss of deposit if you do not proceed with the purchase. Your solicitor should advise you on this."

That might be the case in a rising market where a builder is willing to let a purchaser out of a binding contract in the happy knowledge that there is someone else willing to take their place. But unless the builder is willing to sign a contract releasing the proposed purchaser without penalty or a penalty only on the loss of a deposit ( both most unusual), technically the builder can insist on the purchaser going ahead and paying the full price.

mf