Can I ask to see potential buyer's loan info?

MelF

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I'm trying to sell and buy a house at the same time for my sins, and while the agent says they qualify all buyers and root out any potential issues ahead of time, admit there's a limit to the financial info that they can get from people which is fair enough. Ideally I would prefer ( actually need!) to sell to someone who's ready to rock rather than take a higher bid from someone who's in a sale chain etc. I've received a few offers and the buyer I prefer apparently doesn't need to sell but they do need finance.

I'd like to be as certain as I can be that there are no stumbling blocks down the line with them getting that finance so there's no delay or risks with the sale, but can I ask to see (or for my solicitor to) the details/conditions of their loan offer? Or would that be that privileged info GDPR stuff.
Or once/if we're sale agreed will their solicitor be able provide assurance or proof to mine that they are good to go before I sign contracts?
 
Well you can ask and they can say yes or no but it won't guarantee you anything, the average loan offer has conditions re mortgage protection, house insurance and a few other random ones depending on product etc, unless it has a condition saying they have to sell an existing property it tells you nothing really other than they have a loan offer. Is the amount of the loan offer they have you want to see?

There could still be a hiccup on the mortgage protection for example that you won't know about in advance and even they may not until they apply for it.
 
A purchaser would be foolish to share that level of detail with a vendor or estate agent as they might only squeeze them for more.

Or once/if we're sale agreed will their solicitor be able provide assurance or proof to mine that they are good to go before I sign contracts?

Your solicitor can ask their solicitor to write a letter saying something like "my client has the funds available to complete the purchase subject to contract".

GDPR is not really relevant here.
 
Hello,

Are you actually serious with this question?

Who in their right mind would share their confidential financial information with a person they are negotiating a commercial transaction with?

I'd be extremely surprised if you were willing to share your confidential banking and financial information with the party that you hope to buy your next house from. In fact, I'd go so far as to politely tell you that you'd be crazy, to do it!

Ask the buyer to either provide a letter from their solicitor, or their bank, confirming that they have the means to complete the transaction.

You could also consider trying to negotiate a financial penalty into the contract, if they fail to complete the purchase within "X" months, although they may not agree to such a condition.
 
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Hello,

Are you actually serious with this question?

Who in their right mind would share their confidential financial information with a person they are negotiating a commercial transaction with?

I'd be extremely surprised if you were willing to share your confidential banking and financial information with the party that you hope to buy your next house from. In fact, I'd go so far as to politely tell you that you'd be crazy, to do it!

Ask the buyer to either provide a letter from their solicitor, or their bank, confirming that they have the means to complete the transaction.

You could also consider trying to negotiate a financial penalty into the contract, if they fail to complete the purchase within "X" months, although they may not agree to such a condition.
To be fair I did have to share proof of funds via agent to the vendor I’m buying from, and they wouldn’t countersign contracts either until my loan offer was good to go, so hardly that unreasonable to expect the same level of screening on my end.
 
Well, estate agent can ask if interested party have approved mortgage in princple and enough finances for initial deposits. Its becoming common practice for new builds and EAs are asking these things before accepting deposits. However this is merely additional information but doesn't guarantee they will get mortgage in the end.
 
Well, estate agent can ask if interested party have approved mortgage in princple and enough finances for initial deposits. Its becoming common practice for new builds and EAs are asking these things before accepting deposits. However this is merely additional information but doesn't guarantee they will get mortgage in the end.
Agree, but if they’re also asking fior subject to finance clauses in contracts, then it’s all stacked against sellers unless they in return can ask for proof of finance in place. Fun times ahead so!
 
Well you can ask and they can say yes or no but it won't guarantee you anything, the average loan offer has conditions re mortgage protection, house insurance and a few other random ones depending on product etc, unless it has a condition saying they have to sell an existing property it tells you nothing really other than they have a loan offer. Is the amount of the loan offer they have you want to see?

There could still be a hiccup on the mortgage protection for example that you won't know about in advance and even they may not until they apply for it.
Not the amount, more that there is in fact an approved letter of offer, cos approval in principal means nothing really.
 
Not the amount, more that there is in fact an approved letter of offer, cos approval in principal means nothing really.
Your estate agent should be seeking evidence in your circumstances. If not, they aren't doing their job properly.

A full letter of offer can only be issued once the specific property is applied for, so no potential purchaser will have watertight approval in place. You could limit to cash purchasers if you want certainty.
 
Your estate agent should be seeking evidence in your circumstances. If not, they aren't doing their job properly.

A full letter of offer can only be issued once the specific property is applied for, so no potential purchaser will have watertight approval in place. You could limit to cash purchasers if you want certainty.
That's interesting @RedOnion, I wasn't actually certain what a 'cash purchaser' entailed, thought it simply meant that they weren't in a chain. My house price is on the high side so I'd be very surprised if there wouldn't need to be an element of finance in there too, but who knows!
 
It's common enough for estate agents to request this information, particularly with higher value properties. Your solicitor could draft a letter confirming you have approval in place to meet the asking price without giving the game away.
 
It's common enough for estate agents to request this information, particularly with higher value properties. Your solicitor could draft a letter confirming you have approval in place to meet the asking price without giving the game away.
No I’m actually the one selling, just trying to figure out a more foolproof way to select the right buyer!
 
No I’m actually the one selling, just trying to figure out a more foolproof way to select the right buyer!
Ah, sorry yeah. In that case you could ask you EA to obtain such assurances, but you may need to just defer to their judgement.

I was at a viewing in South Dublin a few years back where the Sherry Fitz agent went off on a bit of a rant about not accepting solicitors letters any more as they had a number of sales fall through when the banks refused to release funding. That does happen where planning irregularities or structural issues are uncovered, or where the bank's valuers feel the property is worth substantially less than the price agreed.
 
Ideally I would prefer ( actually need!) to sell to someone who's ready to rock rather than take a higher bid from someone who's in a sale chain etc. I've received a few offers and the buyer I prefer apparently doesn't need to sell but they do need finance.

I don't think you should ask potential bidders to share financial information with you other than what they have shared with the estate agent.

However, when you are ready to accept an offer, you could say "I am prepared to accept your offer of €300k which is less than I have been offered by someone in a chain if you show me your letter of approval in principle from the bank. I also need to see your offer letter relating to this property within 14 days."

Brendan
 
I don't think you should ask potential bidders to share financial information with you other than what they have shared with the estate agent.

However, when you are ready to accept an offer, you could say "I am prepared to accept your offer of €300k which is less than I have been offered by someone in a chain if you show me your letter of approval in principle from the bank. I also need to see your offer letter relating to this property within 14 days."

Brendan
This is a great idea, exactly what I’m after, cheers Brendan!
 
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