Property related questions answered

Does agent get fee if we sell to walk-in buyer?

Our house has been on the market for the past eight months with poor viewings (only three repeats), no sale and very poor communication from the estate agent. Too weeks ago a couple knocked on our door, we showed them around a couple of times, discussed price, they've done a survey, and now we have a sale. I telephoned the agent to tell him to take our house off his books and that we had made our own arrangements but he is adamant that we will have to pay advertising costs plus his commission (1.5 per cent) even though he did not, categorically, sell our house for us. He has threatened legal action unless we pay up. Where do we stand?

The agents' "For Sign" sign was on your wall which means that he was involved in the sale. How else would that couple, your buyers, know that your house was on the market? You certainly did the donkey work, i.e. showing the people round, "selling" your house by showing off its good points, etc, and then negotiating the price. But it could be legally interpreted that the agent, via his sign, "introduced" the buyer to you. Did you get a contract from your agent? It's usual when a buyer chooses an estate agent that a written contract is drawn up which states details, including the level of commission, etc. In the small print, there is usually a set of terms and conditions which state details, such as the right of the agent to demand fees if you sell within a certain period of time, or that a seller must pass on the details of any prospective buyer who contacts them directly to the agent. Look at your contract and, now that the agent has mentioned legal matters and a contract is involved, take advice from a solicitor.

Can get 100% mortgage on two-bed, but not one-bed?

I am attempting to buy a one-bedroom apartment but my building society now says that it will not give me a 100 per cent mortgage on a one-bed - but will consider giving me 100 per cent on a two-bedroom unit. Is this the norm?

We ran your query by a mortgage broker (REA) to get an overview and they say, yes, it is the norm. There are now few lenders willing to go the full 100 per cent - in contrast to three years ago when nearly all were fighting hard for the business.

But even then, in boom times, they usually would only offer such a mortgage on a two-bedroom unit - one of the reasons being is that it gives the homeowner some wriggle room if they get into financial difficulty, such as losing a job or getting ill, etc. There is always the potential of earning extra (tax-free) income from renting out the spare room. Stand back a minute and think hard before going for a 100 per cent mortgage on any property - in a slow market it is very difficult to build up any equity in an apartment - and you could even find yourself in a negative equity situation.

These days 95 per cent mortgages are standard for first-time buyers and, if you can save your 5 per cent deposit, you will be able to shop around for your mortgage. The bigger the deposit, the more power you have. Take your time, save, there is no shortage of apartments to buy.

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. 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.