Deposits on a site

A

aocon

Registered User
Messages
23
Hi All,
I am currently negotiating to buy a site from a farmer and I am wondering if I agree a price with an auctioneer involved then how much should I give the farmer to hold the site until I go and get an architect and get full planning granted on it, if I ever get it?
When I have the agrement I will get my solicitor to draw up a contract for the farmer to sign with the agreed price.
10% could be as much as 20,000, surely 2,000 would be enough to hold the site? Any comments from people who have been in a similar position.
 
hi Aocon,
I am in the same position as you--- buying a site from a farmer through a auctioneer, cost of site is €70k so I have paid a deposit to the auctioneer of €2k am awaiting contracts etc and am buying subject to planning being granted.
The auctioneer said €2k deposit was enough as site is subject to planning,
I always pay deposit to auctioneer when buying property never to seller.
Are you dealing direct with auctioneer or farmer?
 
Thanks for that cappamj, the price of the site will be close to 200k with stamp duty included, unfortunately that seems to be the going rate for the location. I am now dealing with the auctioneer but know and have spoke with the farmer.
 
Hi Aocon

I have also just bought a site for 200K, I have not applied for Planning Permissions yet. I am hoping to have my Pre-Planning meeting organised next week. I have not paid a deposit or a holdng fee for the site, this may be because I know the auctioneer. I didn't suggest a deposit and neither did the auctioneer. The site is mine 'subject to planning permission' and the auctioneer has drawn up a letter stating the farmer is selling the land to me. No money has changed hands.
I would understand giving a holding fee of 1K to 2K, but 10% is a bit excessive - this is only my opinion.
 
Emily that is what I was thinking and hopeing. I dont think I will be offering any money up front unless it is asked for only a letter stating that the farmer has agreed to sell to me for an agreed fee.
 
Hi

I was just thinking, what if an offer was agreed by the seller 'subject to planning permission' but he/she was then made another offer by another party which he/she couldn't refuse? There is no legal document / contract drawn up, money paid until planning permission is granted. Is there anything stopping the seller from pulling out of the verbal agreement and accepting the better offer?
The letter stating the seller is allowing you apply for planning permission has no legal standing.
Does anyone know waht the story is here?
 
Hi Aocon,
I would not be too happy going to the expense and hassel of planning without some legal paper work in place, in my case auctioneer has been in touch with solicitor and contracts are being drawn up subject to planning otherwise there is nothing stopping the seller selling for a higher price when planning comes through.
I am open to correction but I think the planning goes with the site not the person
 
Hi

I think planning goes with both the person and the site. As far as I know planning laws have changed and have gone very strict on only granting planning permission to people who were born, raised and have live most of their lives in the area.
I will talk to my solicitor and getting some sort of contract drawn up to prevent farmer from selling on land to a higher bidder.

Thanks for that.
 
You must log in or register to reply here.
Back
Top