Are stage payments on new-builds the norm?We have put a deposit on a house currently under construction in a small estate. The builder phoned us to say that the way it works is we will pay for the house in stages, starting with a 30 per cent bill for the price of the site on signing contracts (instead of the 10 per cent deposit we had budgeted for) and then pay in three more stages during the estimated nine months of construction. Is this the norm?
I know stage payments are usual when someone is building a one-off house but this is in an ordinary semi in an estate. How do we fund this in terms of a mortgage?
The charging of stage payments used to be common in the construction of some new developments outside Dublin and it put considerable pressure and additional cost on buyers. People forced to buy in stages found themselves paying extra loan and interest fees and, in effect, it meant that the small-time buyer was funding the business of the builder. However, under a new set of codes agreed this year between the Irish Home Builders Association (IHBA) and the Department of the Environment, the practice of stage payments - as you have been offered - has now ended. It no longer applies to houses where contracts have been signed after June 30th, 2007. (Stage payments are still the norm and permitted for one-off houses). You have paid a deposit - presumably just a non-binding booking deposit - and the next thing would be signing binding contracts. Therefore you are well past the June 30th deadline and so stage payments are not applicable. It's worth noting that this is a voluntary code operated by the IHBA, under the auspices of the Construction Industry Federation. Have you checked out the track record of this builder, other estates he has built, the quality of the build and the sales levels? It might be good point (now that you're actually at contract stage) to get your solicitor on board and for him or her to deal directly with the builder instead of having these informal requests.
Can I get names of people who viewed my house?
My house is currently up for sale. Am I entitled to know the names and addresses (not phone numbers) of people who have viewed it? My estate agent tells me that this is private information.
Your agent is right. The information - right down to basics such as name, address etc - given to the agent by a viewer or potential buyer comes under the Data Protection Act and if, the agent was to give you the list, he or she would be in breach of the Act and furthermore those people whose details were handed over would be entitled to make an official complaint to the Data Commissioner. Of course we all know of cases where the agent told a house seller informally who came through the door at a viewing but it is not actually permitted.
Clarification on CGT
Last week a reader who sold her Dublin house while working abroad was surprised to be landed with a Capital Gains Tax bill and we explained that it was because, although one is allowed a "period of absence" and still be exempt from CGT, that tax-break only kicks in if one returns to live in the house before selling. She hadn't. The Revenue would like to point out that, while this is true and she will have to pay CGT, partial exemption applies to this reader as the property was her main residence for part of her period of ownership. The exempt gain is in proportion to the actual period of occupancy (including the final 12 months of ownership). Also the four-year limit for a "period of absence" relates to a period of absence within the State. There is no time limit in respect of periods where the person is employed (all the duties of which were performed) outside of the State.
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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.
