Very Pushy Estate Agent!

B

Bonafide

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I have friends who are going through the following with their estate agent.
1. They wish to move house to a new estate that has just began construction.
2. They are interested in a house in the second phase of the development, which will not begin construction until early next year.
3. They are interested in a one particular house and its position in the estate.
4. The estate agent that advised if they put €5k on as a refundable deposit it would give them the option to hold the house until they decided if they were definitely going to buy the house, but there was no guarantee on the price (that was two weeks ago).
5. The estate agent has now requested that they pay 10% of the estimated cost (€37.5k less their original 5k as 10% of €375k – with no guarantee on the final price) They also have requested them to sign a contract to purchase the house and they will not supply the final price, beginning or completion dates.

An acquaintance of theirs is also buying a house, in the same estate but in the first phase. When they wanted the final price with some minor alterations to the plans, they were advised they had to sign the contract now. Go to the developers QS and pay him €400 for new plans and they would get a new price (€400 non-refundable).

Is this normal behaviour now for developers?
Does anyone know if my friends can continue to hold the option on the house for the original €5k they put down?
I would appreciate feedback of any sorts. They are being put under a lot of pressure by the agent, who tells them if they do not sign over the weekend, they will lose their option on the house.
 
Sounds very dodgy to me.

Is it in the contract that the full 37.5k is refundable if they pull out at a later stage (say if the developer decides that he wants 400k for the house)? Does the contract include a date or time limit for finalisation of the house specifications, beginning date, completion date and price? What about late penalties if the developer overruns on the agreed date? The contract signing time is the time to consider these things, as they may be very important later on. They will probably be told that the contract is a standard thing, and can't be changed (I hate being told this, it is just their laziness/unwillingness to change it that is the problem).

Personally I would be very wary of giving someone money without knowing what I'll get, when I'll get it, and without being able to get out of the deal.
 
No, the signed contract apparently is for the purchase of the house so it is not refundable. The contract apparently does not give finalisation of the house specifications, beginning date, completion date, price or late penalties (per the Estate Agent - they haven't seen it yet).

Is it even a valid contract without the price (consideration)?

Has anyone else had similar experiences?
 
Do you think it may not be a contract? Perhaps it is a signed non-refundable booking deposit.
 
Anything is possible. Poor show, in my opinion. I wonder if this is what the market in Dublin has come to. I wouldn't advise anyone to enter into this kind of transaction, but I suppose I am underestimating the naivety or indeed the desperation of some buyers out there.
 
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