Tuesday, February 17, 2009

First Time Buyer Trap or the ‘Contract Valuation Trap’

The 'Contract Valuation Trap'

Briefing on an issue in the Irish property market where buyers are unable to complete upon a purchase because lenders are revaluing properties before closing. Unlike the UK system, Irish property is bought by private treaty (generally) and people enter into unconditional contracts meaning they have to rapidly come up with the difference in cash or lose their deposit and potentially be sued to close on the deal as well.

Posted by karl deeter @ 04:06 PM (716 views)
Please complete the required fields.

2 thoughts on “First Time Buyer Trap or the ‘Contract Valuation Trap’

  • this has been a constant thorn in the side of buyer and broker alike in Ireland over the last couple of months. If the contracts are signed the bank will pull a loan offer if the market value has dropped thus meaning clients have to go and negotiate again with the builder who wont budge on the price. This has resulted in a lot of unhapy consumers who find themselves either having to borrow from family to cover the shortfall on the property or risk being sued.

    Please complete the required fields.

  • Eternal Sceptic says:

    A classic case of buyer beware. But then the Irish property market is still in cloud cuckoo land and seems incapable of even a glimmering of understanding of Newton’s first law. By the look of what used to be open countryside in the SW, everyone and their dog seems to have become builders and speculators. I think many many of them are fixing to be severely burnt when reality finally kicks in.

    Please complete the required fields.

Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>