I came across an ideally located premises that had been lying idle for quite some time. Thought it a bit strange that it had not been rented before now as it is in a relatively thriving spot so I contacted the auctioneer last week. Everything seemed fine apart from extensive work to the ceiling that the LL will get sorted. I made an offer and it was accepted. This morning I got a telephone call from my solicitor who said he had received a call from the estate agent who said they would not instruct their clients solicitor to send on contracts without me sending them a deposit first. In this day and age would it not be appropriate to see what you are signing up to before you start bandying deposits about the place?
Estate agent Seeking Deposit With Extensive Work Still Required To Building
- Thread starter Alwyn
- Start date
Brendan Burgess
Founder
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- 55,492
Hi
Generally when your offer is accepted you pay a small deposit, e.g. €5,000, to the vendors' solicitors. Don't pay it to the estate agent.
The estate agent knows that you are serious if you pay a deposit.
This does not commit you in any way. If you don't like what you see in the contracts, you can pull out and get your deposit back.
When the contracts are signed, it is usually a condition that you bring the total deposit up to 10% of the purchase price.
This sounds like a recipe for disaster to me. You sign contracts subject to the vendor fixing this damage. He does a cheap job on it and you refuse to complete the contract.
Either you should not exchange contracts until the ceiling is fixed to your surveyor's satisfaction or else, you should agree a reduction in the price and buy it as is. Fixing it yourself seems to me to be the best option.
Brendan
Generally when your offer is accepted you pay a small deposit, e.g. €5,000, to the vendors' solicitors. Don't pay it to the estate agent.
The estate agent knows that you are serious if you pay a deposit.
This does not commit you in any way. If you don't like what you see in the contracts, you can pull out and get your deposit back.
When the contracts are signed, it is usually a condition that you bring the total deposit up to 10% of the purchase price.
This sounds like a recipe for disaster to me. You sign contracts subject to the vendor fixing this damage. He does a cheap job on it and you refuse to complete the contract.
Either you should not exchange contracts until the ceiling is fixed to your surveyor's satisfaction or else, you should agree a reduction in the price and buy it as is. Fixing it yourself seems to me to be the best option.
Brendan
Thank you Brendan. That is exactly what I thought. My plan was to pay this deposit via my solicitor who would subsequently pass it to the vendors solicitors but the estate agent has cut across this and said the deposit should be paid to her and put into their customer account??
Brendan Burgess
Founder
- Messages
- 55,492
I personally would pay it directly to the vendor's solicitors.
I wouldn't pay it to your solicitor in case they are slow to pass it on.
I wouldn't pay it to the auctioneers either, as I just don't trust them as a group of people. However, ask you solicitor to whom you should pay it.
I wouldn't pay it to your solicitor in case they are slow to pass it on.
I wouldn't pay it to the auctioneers either, as I just don't trust them as a group of people. However, ask you solicitor to whom you should pay it.
If the auctioneer is a member of IAVI (SCSI) or IPAV then they should be OK as they have a policy to cover deposits should they go bust.
Probably the main reason the auctioneer wants the deposit though is that they normally retain their fee from the deposit when the sale eventually closes, it's much easier than subsequently trying to get paid by the vendor afterwards.
Probably the main reason the auctioneer wants the deposit though is that they normally retain their fee from the deposit when the sale eventually closes, it's much easier than subsequently trying to get paid by the vendor afterwards.
As far as I understand, the vast majority of deposits are paid to the estate agent. That's their business model. Therefore if you don't pay it to them, you could end up getting in to a heated exchange which may not be in your best interests, should you wish to negotiate further. My view is to keep the estate agent on side as much as possible.
1. Talk to your solicitor and make sure it is clearly understood by the other party that this is a refundable deposit.
2. Do not close the deal unless you know for certain that there are no outstanding Rates to be paid in respect of this property. Owners have a habit of allowing new tenants to become liable for older tenants rates. This has been discussed on AAM previously.
3. I wouldn't even have seriously looked at this property without getting it surveyed.
The "extensive work to the ceiling that the LL will get sorted" could turn into an expensive job that never gets completed and could affect trading.
If the cause of this is damp or a partial collapse then the joists overhead may need to be replaced and this could cause extended delays in you taking up your tenancy.
Whatever the reason, you should have the premises inspected by a chartered surveyor or architect to ensure its compliant with the building regulations as applicable and in all cases with the fire safety regulations.
ONQ.
All advice on AAM is remote from the situation and cannot be relied upon as a defence or support - in and of itself - should legal action be taken.
Competent legal and building professionals should be asked to advise in Real Life with rights to inspect and issue reports on the matters at hand.
2. Do not close the deal unless you know for certain that there are no outstanding Rates to be paid in respect of this property. Owners have a habit of allowing new tenants to become liable for older tenants rates. This has been discussed on AAM previously.
3. I wouldn't even have seriously looked at this property without getting it surveyed.
The "extensive work to the ceiling that the LL will get sorted" could turn into an expensive job that never gets completed and could affect trading.
If the cause of this is damp or a partial collapse then the joists overhead may need to be replaced and this could cause extended delays in you taking up your tenancy.
Whatever the reason, you should have the premises inspected by a chartered surveyor or architect to ensure its compliant with the building regulations as applicable and in all cases with the fire safety regulations.
ONQ.
All advice on AAM is remote from the situation and cannot be relied upon as a defence or support - in and of itself - should legal action be taken.
Competent legal and building professionals should be asked to advise in Real Life with rights to inspect and issue reports on the matters at hand.
@ Spear -
LA chasing me for rates arrears (commercial lease) not paid by a previous tenant is the most thread that springs to mind - there may be others.
I was outraged by the sharp practice apparently still being followed by some members of the "landed gentry" - i.e. the owner of the premises who never followed up on the rates unpaid by the previous lessee.
I was also quite surprised that Brendan stated in the thread that he wouldn't have known about this practice - since he is one of the founts of knowledge on AAM
When someone posted that you couldn't even trust a solicitor to ask about this I made a mental note about it.
I only knew about this thread subject because I read it and contributed to it.
It should be mandatory to disclose this under requisitions on title.
Personally I think it is a form of odious debt.
Hope this helps.
ONQ.
All advice on AAM is remote from the situation and cannot be relied upon as a defence or support - in and of itself - should legal action be taken.
Competent legal and building professionals should be asked to advise in Real Life with rights to inspect and issue reports on the matters at hand.
LA chasing me for rates arrears (commercial lease) not paid by a previous tenant is the most thread that springs to mind - there may be others.
I was outraged by the sharp practice apparently still being followed by some members of the "landed gentry" - i.e. the owner of the premises who never followed up on the rates unpaid by the previous lessee.
I was also quite surprised that Brendan stated in the thread that he wouldn't have known about this practice - since he is one of the founts of knowledge on AAM
When someone posted that you couldn't even trust a solicitor to ask about this I made a mental note about it.
I only knew about this thread subject because I read it and contributed to it.
It should be mandatory to disclose this under requisitions on title.
Personally I think it is a form of odious debt.
Hope this helps.
ONQ.
All advice on AAM is remote from the situation and cannot be relied upon as a defence or support - in and of itself - should legal action be taken.
Competent legal and building professionals should be asked to advise in Real Life with rights to inspect and issue reports on the matters at hand.
You're very welcome.
Spread word of this practise at every opportunity.
I'd like to see it stamped out and the people owing the rates pursued.
ONQ.
All advice on AAM is remote from the situation and cannot be relied upon as a defence or support - in and of itself - should legal action be taken.
Competent legal and building professionals should be asked to advise in Real Life with rights to inspect and issue reports on the matters at hand.
Spread word of this practise at every opportunity.
I'd like to see it stamped out and the people owing the rates pursued.
ONQ.
All advice on AAM is remote from the situation and cannot be relied upon as a defence or support - in and of itself - should legal action be taken.
Competent legal and building professionals should be asked to advise in Real Life with rights to inspect and issue reports on the matters at hand.
Thanks Onq.
The lease fell through as I refused to hand he deposit to the auctioneer. When I explained I would give it directly to the LL's solicitor; the setate agent said - (her words not mine!) "pay me directly as I don't want to be duped out of my fees"!) As you can imagine I gathered my deposit up real quickly and withdrew my interest.
The lease fell through as I refused to hand he deposit to the auctioneer. When I explained I would give it directly to the LL's solicitor; the setate agent said - (her words not mine!) "pay me directly as I don't want to be duped out of my fees"!) As you can imagine I gathered my deposit up real quickly and withdrew my interest.