Deposit on 2nd hand house - refundable?

[Silvester]

Hi, we're looking to buy a property in Ireland, but I'd welcome info on the buying process. When you agree to buy a 2nd hand house, do you have to put down a deposit there and then, ie. well before contracts are signed? If so, what percentage of purchasing price is this, and more importantly, is this deposit refundable, ie if you want to pull out eg. if the searches throw up something nasty?

If the deposit is refundable, does this actually work in practice, will the sellers give it back without any hassle, or is the sum kept in escrow? Thanks for any info.

 

[HighFlier]

All precontract deposits are refundable and if you use a reputable estate agent you will have no problem in getting your money back even if you change your mind for no reason.

Deposits are usually nominal 5k to 10k.

Contracts are a different matter. On signing a contract usually 10% of the purchase price is paid. This is not refundable if you change your mind but most solicitors acting for you will make sure that there is a clause where you can recover your money if there are any specific problems in relation to title or structural survey. It is also common to sign a contract subject to finance whereby if you fail to get finance you can back out without penalty.

 

[panathon]

You can pull out on a full deposit and get it back - booking deposits to full deposits are both absolutely worthless in securing a property, they are simply a graduated system of intent to purchase. If you pay a full deposit to somone and withdraw, they have no immediate legal recourse to claim your monies.