The nightmare of Going Sale Agreed in IRELAND
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- Опубликовано: 31 мар 2024
- It can take more than 6 months to close a sale from sale agreed to completion in Ireland, that is just nuts.
So you have gone sale agreed, or you are housing hunting and want to know what happens after going sale agreed in Ireland, if you are wondering why it takes so long to complete a sale and what to avoid some of the pitfalls, this video is for you.
I, have 20 years of experience in property, working on the sales side and buy side, commercial residential, for banks, agencies and large companies, I have seen all the nightmares when buying a property.
So you are all happy your bid has been accepted but what next, what should you expect and what mistakes should you avoid? In this video I am going to highlight 4 major areas that can slow down a sale completion,
But there are a few bases to get out of the way first.
When you go sale agreed, and your bid is accepted, the agent will ask for a booking depost, your solicitor's details and surveyors' details, so best to have then already arranged if you want to keep the ball rolling,
I always think it is a good idea to include the names of your solicitors and surveyors with your bid. It shows that you are ready to close.
The booking deposit will range depending on the property's value from 5k to 50k; it is generally 1 to 2% of the property's value, rounded up.
This booking deposit is fully refundable, meaning you can pull out any time up until contracts are signed. This leads to one of the first nightmares of going sale agreed; either party, the buyer or seller, can pull out at any time, going sale agreed in Ireland is not binding, If a buyer pulls out, the seller has to remarket or go back to under bidders, this leads to lost time and money. If a seller pulls out, the buyer will be out of pocket for the cost of their solicitor and surveyor as well as time, and potentially, they could have missed bidding on another property.
My name is Shane Fleming a chartered property expert with over 18 years of experience in real estate, a degree in property economics. The views in these videos are my own and are just entertainment.
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Digital viewing google maps style. Realtors don’t answer emails or calls about wanting to view a property a lot of times. This would be a nice way to se if the property is interesting
Working on this, we have some good ideas to solve this
Hello Shane! Great video- as an Australian who was ( note the past tense) looking at buying in Ireland I could not agree more. The situation where the buyer places a miniscule non-binding deposit which is fully refundable to reach this 'sales agreed' stage and only then you engage lawyers and a building inspection is the complete opposite of the situation in Australia, where the contract is signed and is unconditional within 2-4 weeks usually subject to a satisfactory building inspection and finance approval clauses (if applicable). Also usually within 2 days of signing the contract, the buyer must pay a 10% deposit-that's right, 10%, so on a EUR 600,000 property, this equates to EUR 60,000 upfront. Or the contract falls through. The building and finance clauses are practically the only 2 reasons a buyer can back away from the contract in Oz.
Get to Ireland andwe found its a bit of a free for all- we reached 'sale agreed' on no less than four properties ( 2 in the Maynooth area, one in the greater Dublin area, one in the Killcock area) and withdrew from every one on the grounds of legal ( =undefined or poorly defined building corporation legal situations) or structurally (ie: foundations needed remediation due to the infamous mica situation-foundations subsiding ). In all cases we incurred leglas and building inspection costs. It certainly was a 'crash course' in Irish real estate! There is just no 'skin in the game' for the Irish buyer but ,of course, the buyer is also at risk from a vendor who simply changes their mind!
My suggestion is to change your process and replace it with the Australian one- no need to re-invent the wheel. Irish realtors I spoke to about what we did in Australia were impressed-signing the contract on the day the 'sale is agreed' and the payment of a 10% deposit within 24 -48 hours would certainly sort out both buyers and vendors. The other factor is that appears every sale in Ireland is a potential 'Dutch auction': in Australia you can put one bid in and this must be put in the form of a contract signed by the buyer with a bidding price on it. Its not just 'putting a bid' on a realtor website and potentially bidding agianst yourself!
Please I am NOT preaching to my Irish friends, just felt inspired to write a comment
(=which I almost never do on YT)
Lot of great suggestions there. Thanks a mil. We have loads of idea, it’s hard to change the ships direction but we are hoping to introduce some innovative solutions over the next year
The Dutch auction process is crazy
"irish system is Archaic"...big understatement. in some countries properties are bought the same day. like buying something at a shop.
Buying property as you would buy grocery is scary. But I agree the Irish property market can be a nightmare.
On the booking deposit theme being refundable I found that very odd. In Portugal there's CPCV which is your idea of smart contract and the standard is that your booking deposit is 10% (Your house deposit). If the buyer pulls out they loose their deposit (10%). If the seller pulls out they have to give back double the deposit (20% of the house). Obviously dependent on bank mortgage approval and usually you need pre-approval to make an offer on a house.
During my house search I ended up thinking at some point "Well I could just make a deposit on this house and continue looking and if I find something better until contracts I'll just ask for my money back and make a deposit on the new find"
I do feel 1-2% of the value of house is too low and not serious people can just bid on whatever bringing prices up
6 months for me Shane!
Sadly average now. But something has to change
I work on business process improvement intern in a business every day. So I look at the residential house buying process with that lens Its bad , but because it tends to be once or twice in a life time people don't really push to get it fixed & if you work with it well often its like a Stockholm syndrome - its what you know. To fix it, there are up dates to laws required & to public read keeping & accessibility plus some of the responsibility of buyers & sellers need to be redefined. Public property records need to be better & easier accessible & an element of binding & penalty needs to be involved for delays or for parties not being adequately prepared to move forward with the sale / purchases. To me there is no excuse to put a property up for sale with out having ensured title, boundaries easements, rights of way are clean & clear if its probate then that needs to be declared up front & the land registry process needs to reflect that. Seller declarations on certain building conditions / standards as well as planning permissions. On line accessibility to public records showing grant of planning permission associated with property . None of this will remove buyers need of due diligence but it will make it simpler. Buyers need to be penalized for making bids they can't support some of that will go back to what the banks accept to support mortgages - but thats circular ( chicken & egg) with some of the other process improvements.
I like your point about buyers only having to do it every few years and will deal with the issues
Hi Shane, do you have a video on what legal checks can a buyer do that don't require a solicitor? Is there a register I could access even at a fee to have a look at more details of a property even before viewing it? Thanks for your great work!
There is not much. You will have planning applications on line, land reg etc. but all the important info will be with the solicitor
Hi Shane, would you know how long does it take for a new built property to have the title in your name? I bought a property 12 months ago, still waiting on the title.
It normally takes a year to 2 years but can be done faster if developers have everything organised but if they are slow themselves and there is other phases they can be slow submitting all the info
Keep believe it Mr Fleming.Next year you and many irish people will start live in different reality.Once elections in Ireland will be ended we will see full speed down !
A political shift will change things for sure
What are the most worrying and potentially costly issues? Pyrite? Roof problems?
Pyrite should be known before hand. You can look at roof on google maps to get an idea. If looking older than 30/40 years report will flag it as a risk. Roof can be fixed.
Foundation issues would be the biggest issue
@@shaneflemingreThanks Shane!
Shane, sound advice. However, "Mind Fields" ?
What would you suggest,
It should read MINE fields@@shaneflemingre