The Department of Environment and Local Government has moved to clarify the situation regarding grants for first-time property buyers.
First-time buyers who have already paid booking deposits of up to €5,000 for apartments, such as those at Spencer Dock in Dublin's city centre, are concerned about their eligibility for the grant. Agents for the development could not be contacted last night.
According to the Department there are three categories under which first-time buyers are eligible:
• Where applications for grants have been approved by the Department prior to midnight on November 14th, 2002.
• Where applications for grants have been received before November 14th, 2002 and are not yet approved.
• Where the applicant has signed a contract dated on or before November 14th to either buy or build a new house. Such applicants have until December 4th, 2002 to apply for the grant.
For those building their own homes, the foundations of the house must have been poured by November 14th for them to qualify.
According to the Department there are three types of deposit usually paid but eligibility depends on whether or not buyers have signed a contract, not on the amount paid as a deposit.
The first type of deposit is what is termed a "goodwill" or a booking deposit, where the buyer will pay anything from a couple of hundred to a few thousand euro. This is usually refundable and no commitment has been made to buy the house. This type of deposit will not qualify as a contract and does not qualify for the grant.
The second type of deposit is where a buyer pays approximately 10 per cent of the full cost, usually €10,000-€20,000. This is non-refundable and a contract is usually signed. If this contract was signed on or before November 14th, 2002, the buyer will qualify for the grant.
The third type is the full building agreement between a buyer and a builder or developer, which if signed on or before November 14th, will qualify the buyer for the grant.
Applications for first-time buyers' grants must be received by the Department of Environment and Local Government in Ballina before 5.30 p.m. on Wednesday, December 4th, 2002. For further inquiries: Lo-call 1890 305030.