Council Transfer Order

C

confusedchic

Guest
Just wondering if anyone else has been in this situation. I'm in the process of buying an ex-council 2 bedroom terraced house in Inchicore which is 20 years old. Last week I paid the 10% and signed the contracts which are with the vendor's solicitor now. The vendor bought the house from the council in 2000 having lived in it since it was built. However, to sell the house the vendor must get Dublin city council to sign/stamp a "letter of transfer or a transfer order". Apparently this is fairly straight-forward and something that I will have to do if I decide to sell the house also. My solicitor gave me a copy of the signed transfer order that the vendor received from the council in 2000 to take away and read after I'd signed my 10% away, assuring me it was fine. However, on reading the document I discovered that according to one of the conditions I will be unable to rent out the house for 20 years. Has anyone come across this? I hope it’s a condition that isn't really enforced. I won't be able to make mortgage repayments without renting it out and now if I pull out I lose 10%. In any case there is no guarantee that I won’t change jobs etc. in the next numbers of years and want to rent the entire house for a short/long term. There are so many ex-council houses being sold at the moment….Can anyone help or give me advice.
 
Hi ,
Have come across it and checked it with an accountant friend. The clause is designed to prevent ex council houses going back into the private rental market. This would happen if you rented out the whole house. The rent a room scheme is not included. You cannot get an investment type mortgage on a property like this. I do not know how well it is enforced. It also does not seem to make these type of houses any cheaper!
 
Thanks for your help Emerald,
I really hope its not that well enforced because its hard to say if I'll be living there for the next 20 years. Work committments may mean i will have to rent the whole house at some stage. If the clause is designed to prevent ex council houses going back into the private rental market it should be reflected in the price. I really think its something that people should be made aware of before buying an ex-council house. Places like Inchicore, Crumlin, Drimnage are a sea of council houses being bought out by ftb's. Anyway, enough of my ranting. Thanks again.
 
hi just putting this out there again incase anyone else has anymore thoughts or advice. Thanks
 
I thought it was a no sell clause that lasts 5 years (2000-2005) and is now lifted but the vendor needs written proof to show they may sell .

Should the vendor not provide this , surely the transfer was from the corpo to them !
 
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