Your property questions answered
Can I get a refund?
QI viewed a house which I liked which the agent said was "very sound with no problems". I asked during the viewings whether there were any structural problems and was told no. I paid a deposit on the basis that the house was perfect. I had a survey done just to be sure and it turns out that the house has a serious damp problem, an expensive roof issue and other problems. Obviously I pulled out of the sale and got the deposit back but the survey cost nearly €450 and I wouldn't have gone this far if I had not been told the house was in good condition. I believe the agent should refund this on the basis of having given false information.
ABuying a house is all about caveat emptor – buyer beware. According to the IAVI, the professional body to which most estate agents are affiliated, "an Irish agent who voluntarily discloses detrimental information about a property he is entrusted to sell would breach his contract of agency. His legal duty is to secure the best price he can and voluntarily disclosing negative facts about the property flies in the face of that duty".
It is different in some other countries, where agents must disclose all known faults.
As a househunter you should not expect the agent to give informed opinion on structural matters. A professional survey by an engineer or surveyor is a must when buying any property, particularly an old house. Buyers should never take an agent’s word for it but should always get professional advice before buying.
How long to pay shortfall?
QMyself and my ex need to sell our jointly bought apartment. We suspect there will be negative equity of around €80,000, though it could be more. If we sell and there is that shortfall, how long do we have to pay the lender the difference between the price we get and the amount we owe on the mortgage?
ATypically the lender will not let the sale go through unless the full amount of the mortgage is paid. So you would need to lodge the €80,000 (or whatever) with the solicitor as soon as a buyer emerges and contracts are exchanged. You should also tell the solicitor at the outset that the negative equity situation is likely to arise so he or she can be prepared. In other words, before you even attempt to sell you need to have the mechanisms in place for getting your hands on that shortfall (a loan or savings perhaps?).
It is also worth talking to your lender before you put the property on the market, telling them of the situation and seeing if you can negotiate a deal on the size of the shortfall.
Your questions
Send your queries to Property questions, The Irish Times, The Irish Times Building, 24-28 Tara Street, Dublin 2 or e-mail propertyquestions@irishtimes.com. This column is a readers’ service and is not intended to replace professional advice.
