What deposit to I have to pay when buying a house?

STEP BY STEP GUIDE TO BUYING A HOME

BLOG 1 : DEPOSITS:

1. When purchasing a property through an auctioneer, you will be required to pay a booking deposit. Often times this will be in the region of €5,000-€10,000 and will be requested by the auctioneer at the very beginning to show your seriousness and intention to purchase the property. It is a figure that is held by the auctioneers once the property has formally sold. The auctioneer fees are taken from this figure and the balance remaining will then be released to the Vendors.

2. A deposit is then required the day you sign the contracts to purchase the property. Generally speaking, a deposit will be between 8- 12% of the purchase price of the property in question. For example, if a property is on the market for €300,000.00 and the deposit is 10%, the deposit required the day of signing will be €30,000 and this will need to be transferred on the day.

3. There is often confusion that the booking deposit is additional to the deposit required on signing but in fact it can be subtracted from the deposit you will pay on the day you sign the contracts. For example, if you have given €5,000 booking deposit to the auctioneer and €30,000 is required as a deposit to the seller on the signing of contracts, you will only need to give €25,000 the day of signing.

If you are buying a house or thinking of buying a house, contact one of our experienced property solicitors in either our Cahir or Cashel offices and we will be delighted to assist you.