Auctioneer plays hard to get
Two weeks ago, we put in an offer on a house after it was withdrawn at auction, knowing that post-auction negotiations with the highest bidder had come to nothing. The auctioneer claimed that the owners wanted to think about it over the weekend. However, not only did he fail to come back to us when he said he would, he appears to be avoiding us, claiming to be "on the other line" if we do manage to reach him, and failing to return our calls. Is he breaching a code of practice? Is our only option to wait until he responds?
The auctioneer is behaving in an unprofessional manner. It is likely that he is a member of a professional organisation, such as the IAVI, and under that self-policing organisation's code he is obliged to conduct business in a professional manner. But that's little use to you in your situation. When a house is withdrawn at auction it usually goes back on the market immediately for sale by private treaty. Your offer should have been considered, and accepted or rejected quickly. Could you speak to the negotiator's boss? It could be that your negotiator is simply rubbish at his job and his boss might inform you of what is happening. Given the agent, you should do some leg work yourself. Is the house still for sale? Has the sign changed from "auction" to "for sale" or "sale agreed" or "sold"? If it is still for sale, drop a note in the door and explain the situation. The owner may not realise that the auctioneer is useless. There are few buyers or sellers who don't have a war story about auctioneers but, when it is over, most people put it behind them, which is a pity as complaints about professional services should be logged. When this is over, write to the Office of Consumer Affairs, 4 Harcourt Rd, D2 to log your complaints.
Buying in provincial France
I'm looking to buy a small studio in a provincial French town for less than 50,000. I understand that I need to add an extra 10-15 per cent to cover local legal fees, etc. I plan to let out the studio to a student from October to May and have it for personal use for the remaining months. I am a PAYE worker in Dublin earning less than 35,000 and have equity of approximately 150,000 in my home. I would like to finance the studio in France from this equity. Can you please advise me if this is possible and what the tax implications would be on this purchase.
Given the equity in your house and your PAYE job, your existing lender, or indeed any lender in this highly competitive market, will probably be interested in increasing your mortgage to fund your purchase. What they will be interested in, is the equity in your home but also your ability to pay a bigger mortgage. You should be thinking in terms of 15 per cent in costs. As for letting out the studio - I take it that you have researched the rental market in the area and are happy with the rental returns and are confident that, even if it doesn't work out as planned, you will still be able to service your increased mortgage. As for tax issues, you will be liable for tax on your rental income (less costs) and for any capital gains tax that might accrue when you sell you studio.
Send your queries to Property Questions, The Irish Times, 10-16 D'Olier Street, Dublin 2 or e-mail propertyquestions@irish-times.ie.
Unfortunately, it is not possible to respond to all questions. The above is a representative sample of queries received. This column is a readers' service and is not intended to replace professional advice. No individual correspondence will be entered into.
