Are agents legally bound from making fictitious bids?
Q Are estate agents legally bound to prevent them ratcheting up offers on a house by claiming “another party” is topping every offer one makes. I have a recent ongoing experience of our agent coming back every time I increase my offer with a higher one. In one instance it was €3,000 within five minutes. In today’s market it is difficult to believe that offers can come in so quickly, especially for a modest house in this case.
AYours is not a new complaint and many a buyer has felt that an agent was inventing fictitious bids to up the price. But it is extremely difficult to prove. According to the code of conduct established by its own professional body, the IAVI, member estate agents "shall ensure that the identity and contact details of all those making offers, the amount of all offers and all responses to offers are noted either manually in the property file or electronically in a retrievable fashion" and that "such records shall be retained on file for not less than six years after the marketing campaign ceases". It would appear from this that, if you made a complaint to the IAVI (assuming the agent you were dealing with is a member), then it could look into the matter for you. But, as this is a self-policing profession, it is difficult to see what is really in it for you in the long run. It could be that your offer is considerably below what the seller wants and instead of giving you a flat "no" and telling you the level that would be more acceptable, the agent is hoping to edge you up to the acceptable price. Or indeed there could be another bidder – but that extra €3,000 in five minutes would make anyone suspicious! Money is cheap now but it won't always be and you could come to regret that extra €10,000 or whatever. Ask yourself what the house is worth to you, put it to the agent as your full and final offer and tell him not to come back to you unless it's to accept. Don't be bullied into paying more than you want.
Accountant won’t let us claim for travel to holiday rental?
Q Last week there was a question from a man who owns property in Spain and goes down between lets to refurbish it himself. He claims his travel expenses when he goes to renovate the property for letting. We have twice tried to do this but each time our accountant says no?
AWithout second guessing your accountant, it is most likely that your trips to Spain have a recreational element. Revenue is strict on this and the rules are that "the cost of travelling to your let property is only allowable if the journey is undertaken wholly and exclusively for the purposes of earning rental income from the property. There can be no element of private purpose whatsoever." If you are mixing business (sorting out leases with a lawyer, dealing with a contractor, etc) with a couple of days in the sun with your partner or family then you won't be able to claim for your trip.
Your questions
Send your queries to Property questions, The Irish Times, The Irish Times Building, 24-28 Tara Street, Dublin 2 or email propertyquestions@irish-times.ie. This column is a readers’ service and is not intended to replace professional advice.
