Your property questions answered.
Does long-term tenant have a right to buy?
Q I have been living in France for the past six years. I have a house in Dublin and I have let it out to the same tenant for this period and intend to do so into the future. Is there any situation in the future, after a set period of time, whereby he would have “rights” if and when I wanted to sell the property? Incidentally, I am tax-compliant in Ireland.
AYou don't say what type of lease your tenant has and, according to Kevin Baneham, legal officer at Threshold, that's the crucial bit. If the tenant has a fixed term lease agreement, you must sell the property subject to the tenancy. It is sold as a going concern and the rental income forms part of the sale. If there is no fixed term lease (which is probably the case) you will be able to terminate the tenant's "Part 4" tenancy by giving him 112 days notice on the grounds that you are selling the property. Part 4 is the minimal level of security of tenants who have been in a property for over six months and lasts for a further 3.5 years. It is cyclical and the tenant loses the Part 4 protection for the first six months of every four-year cycle. This tenant is now in their second Part 4, as the clock started running on the first Part 4 in September 2004. As the tenant has less than 20 years tenure, he will not be able to avail of the long occupation equity lease under the Landlord and Tenant (Amendment) Act 1980. Tenants who have not reached the 20 years tenure by the end of this year will no longer be able to apply for this long occupation equity lease.
Can agent ask about buyer’s finances?
Q I viewed a house earlier this month (twice) and on the second visit told the agent I would be making an offer. He asked me what I consider to be intrusive questions regarding my finances, such as my mortgage situation, my current living arrangements and, while he asked casually, he clearly wanted to know what I worked at but didn’t want to ask straight out. Needless to say I haven’t returned his calls. Is this usual?
AWith mortgages so difficult to come by, agents can be very reluctant to entertain any offer unless they know that the buyer, if the bid is accepted, is in a position to go through with the deal. It's part of the reason that it's rare to see a "sale agreed" notice on a sign, just a "sold" one when the deal is done. The agent has a duty to the seller (his client) not to waste their time with someone who is not realistically in a position to buy. As a buyer, your best tactic is to give yourself as much leverage as possible in the negotiations. For example: "I am a first-time buyer with mortgage approval and can close the deal immediately", or "I have already sold and am a cash buyer" or whatever. A bid from someone in that position, even if lower than hoped for, will most likely be well-received by any seller. If you need to sell before you buy, don't bother even making an offer, instead tell the agent of your situation and your interest and see what happens. If you really like the house, don't let the agent put you off.
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. This column is a readers’ service and is not intended to replace professional advice.
