Your property questions answered
Agent is pushing for funds but I don't have mortgage yet
Q I am a first-time buyer so am very new to all this and am nervous about doing the wrong thing.
I put a booking deposit on a townhouse three months ago which should be ready to move into in July/August.
The agent has been phoning me to sign contracts and pay the 10 per cent deposit which I understand is non-refundable.
I could do that now from my savings but my problem is that my mortgage approval has been delayed because I have been self-employed for two out of the last four years and I am getting audited accounts. Although there should be no problem there.
How should I handle the (very persistent) estate agent?
A The absolute rule is that you don't sign contracts unless you have the funds to complete the sale. That is more true now than ever before because money is harder to get hold of.
While you may not have a problem getting funds, there may yet be a snag so wait until you have the letter of offer for the amount you need.
The contract will commit you to going through with the sale and if you sign and find that for whatever reason you can't go through with it, unless there is some get-out clause (ie, subject to mortgage approval), you will lose your deposit and in the worst case scenario (though not entirely likely at the lower end of the market) be brought to court by the developer to force you to go through with the purchase.
It's the agent's job to be persistent but it's yours to protect your own interests.
Explain your position to him. Ideally, even if your mortgage comes through next week, you should hold off until the house is complete and make it clear to the agent that you would prefer to do this.
He is going to want to keep you onside in this market but it's up to you to flex your buyer's muscles and only do what you want when you want to.
Several agents should make house sell faster
Q I watched the Late Late Show last week and Liz O'Kane (who presents a property programme and runs a property finding business) suggested that it would be a good idea if Ireland was like other countries where several agents are allowed sell the same property and the agent who makes the sale gets the commission.
It's a brilliant idea because obviously everyone works harder and the seller wins.
Why don't multiple agents handle sales here?
A Well the short answer is that they do - but only usually in specific circumstances. In parts of the country it's not unusual for more than one agent to have the same property on their books.
Also, at the top end of the country house market it is not uncommon to have more than one agent - for instance, a Dublin-based one with international connections plus a local who can show the property at a moment's notice and which has specific local knowledge.
The problem for sellers with more than one agent is that they all have to get a cut of the fee and agents rarely reduce their fees significantly in these circumstances.
In short, it could be very expensive as sellers would be paying double fees. Also agents don't like it and it's safe to say that the bigger agents would not be interested in trying to sell the same semi-d, along with another agent. The market is simply too small.
Your questions
Send your queries to Property questions, The Irish Times, The Irish Times Building, 24-28 Tara Street, Dublin 2 or email propertyquestions@irish-times.ie. Unfortunately it is not possible to respond to all questions.
The above is a representative sample of queries received. This column is a readers' service and is not intended to replace professional advice. No individual correspondence will be entered into.
