Residential Tenancies (Right to Purchase) Bill

J

Jumpingjacks

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Is the Residential Tenancies (Right to Purchase) Bill signed into law ? Can they back date it ? Thinking of issuing notice to sell, 8 month notice period.
thanks.
 
Its a bit of a nonsense to be honest; tenant always had the option to buy at market value, just like anyone else in the country.

I don't think you'll find it hard to meet the requirements; but you might find it easier to sell an empty property than one which has a tenant.
 
Is the problem with this Bill as follows:

1. Tenant exercises their right and makes a bid

2. Landlord doesn't accept the bid and offers the property for sale in the open market

3. Any third party bidder will know that if they are successful the tenant can gazump their bid by offering €1 more

4. Third parties therefore steer clear of properties where the tenant has a bid in.

This again discourages landlords from entering the market and encourages more to leave - it just encourages landlords to sell after the tenant has left of their own accord as it is a 'clean' sale then.
 
Most ridiculous piece of superfluous legislation ever.

Any sane landlord would take a bid from a sitting tenant even below market rate: no void period, no clearing house out, no estate agent fee, no risk of a sale falling through.
 
Agree that it seems nonsense. When we bought a couple of years ago the apartment ended up being empty for the guts of year. Loss of over 2k per month plus EA fees… IF there had been a tenant willing to buy there’s €30k+ up for grabs already.

There wasn’t in this case I suspect as there were 3 lads and a girl sharing it but that’s not always the case. Sis has a house, same tenants for 20 years. She’d happily sell to them but they aren’t interested but it’s ticking over and everyone is happy. If the tenant moves they can increase the rent but only a little so they aren’t bothered.
 
The new bill for this right to purchase is out. Here is an extract from the Explanatory Memorandum setting out how the bidding process will now work. Can anyone understand it? It seems to go as follows:

1. The tenant on receiving the notice of termination can make a bid
2. If the landlord doesn't accept the bid, the property goes on the open market
3. If a third party bidder doesn't bid higher than the tenant, then (and this is the part I don't follow):

The new section 39E provides that after the initial 90 day period, the landlord can enter an enforceable contract for sale with any bidder on the open market, if the landlord has not already entered an enforceable contract for sale with the tenant or ‘relevant body’ during that period. However, if a higher bid cannot be obtained from a ‘third party bidder’ on the open market than might have been bid by the tenant / ‘relevant body’ and the landlord still wishes to sell, the landlord must revert to the ‘relevant bidder’ (i.e. the tenant / ‘relevant body’) and give a further notice of invitation to bid, which must specify the lower bid from the ‘third party bidder’ that the landlord is now willing to accept from the‘relevant bidder’. The ‘relevant bidder’ has 10 days to make a further bid on the dwelling and the landlord has 7 days to accept any further bid made. The landlord cannot enter an enforceable contract for sale with a ‘third party bidder’ during the period of 6 months from the date of receipt of a further bid from a ‘relevant bidder’ unless the ‘relevant bidder’ withdraws their further bid during that time.

Another point is that there are penalties if the landlord doesn't follow this to the letter ie. complete and serve all the forms correctly and within the time frames.

Also, what if you have, say, 4 tenants in a house is it one right to bid each or do they all have to make a joint bid? Very unlikely I know, but can they bid against each other under this right to buy?
 
Like a lot of landlords, we offered our property to the sitting tenants but they declined to purchase, they wanted to continue to rent at well below market rent while we continued to lose money.

This new bill is worrying because, (1) the house is not vacant, (2) the house cannot realistically be prepped for best sale price, (3) it looks like not just the tenants can bid i.e. relevant body could mean anything, (4) the tenants could sabotage viewings.

It looks like the government don't want landlords to have the right to sell at market value.
 
I recall looking for our first house as newly married and you could always tell the properties where the tenants were in situ and didn't want to leave.

Kitchen a mess, Royal Dutch cans everywhere including floor.Dishes in sink.

Bedrooms Beds unmade- general mess

Toilets and this was the nasty part, lid open and either liquid or stool in bowl stinking thr Place out

You just couldn't wait to get out of property quick enough.

I'd never sell a property with tenants in place.

Once they move out, then I'd consider it but I'm a what you have you hold merchant.
 
If a landlord is currently thinking of selling, it also seems to be an encouragement to get the notice of termination in place before this becomes law. Who'd want to embroil themselves with this right to purchase?
 
Hi @Greenbook @Equality and all other posters. Do you know if an owner is required to share the details of the third party bids with the tenant or can they just indicate to the tenant that they have gone sale agreed without providing an opportunity for a tenant to counter offer. Also can the owner set the terms such as 'final blind bids' etc. Relatedly, do you know if there are any provisions relating to the notice periods. Trying to sell a rented apt to buy a house.
 
Last edited:
Trying to Buy said:
Hi @Greenbook @Equality and all other posters. Do you know if an owner is required to share the details of the third party bids with the tenant or can they just indicate to the tenant that they have gone sale agreed without providing an opportunity for a tenant to counter offer. Also can the owner set the terms such as 'final blind bids' etc. Relatedly, do you know if there are any provisions relating to the notice periods. Trying to sell a rented apt to buy a house.
Click to expand...
This Bill has stalled. It was going through the Oireachtas when the election was called, so it is not a law yet only a draft one. Fianna Fail's election manifesto promises a right to buy, no one else's manifesto does. At this stage, I wouldn't be concerned with it. It may be killed off, it may resurface in a different form or it may be revived in its current form. It depends on who is in government with who, we'll have to wait and see.

That said, it will unnecessarily complicate the sales process for landlords, so if you are planning on selling and are concerned about this right, now is a good time to start the eviction process. It may well be back in some form in a year's time especially if Darragh O'Brien remains as Minister for Housing - it seems to be a pet project of his.
 
As Greenbook said now is the time to start the process. It is a year since we decided to sell a rental property.

The first step was to get our solicitor to sign the declaration and the NOT was issued to the tenants and the rtb. To accommodate the tenants we extended the notice period, refer to rtb for minimum notice period but allow about 6 to 9 months unless tenants vacate earlier.

In the meantime we contacted a local auctioneer who put the property up for sale once vacated, arranged viewings and accepted a booking deposit. You need a BER and may want to decorate to improve kerb appeal, allow about a month.

The auctioneer contacted our solicitor with the sales advice note and the contract process began. We gave the deeds to our solicitor plus there are questionnaires that may require specialist advice before contracts can be signed, allow minimum 3 to 4 months.

Finally, once funds received, less costs etc CGT Tax submission has to be made within the relevant deadline. Hope this helps.
 
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