At Adrian Hassett Auctioneers we believe that understanding the buying process is just as important as finding the right home. One of the first financial steps after an offer is accepted is paying a booking deposit, yet it is also one of the most misunderstood. Is it binding? Can you get it back? Does it stop the seller accepting a higher offer? Whether you are buying or selling in 2026, here is what you need to know.
What is a booking deposit?
When a seller accepts your offer and the property goes sale agreed, the auctioneer will usually ask for a booking deposit. It is a goodwill payment that shows you are serious about proceeding, and in return the property is generally taken off the market while the legal work begins. There is no fixed amount set in law. The figure is agreed with the auctioneer and can vary depending on the property, the price and the agency's own practice, so always ask what is expected before you make an offer.
Is a booking deposit refundable?
Yes. In Ireland, a booking deposit paid to an auctioneer is fully refundable. A buyer can change their mind for good reason, bad reason or no reason at all and is entitled to have the booking deposit returned. That is because the sale is still subject to contract, meaning neither party is legally bound until contracts have been signed by both buyer and seller.
This works both ways. Just as a buyer can withdraw, a seller can also decide not to proceed, or accept a higher offer from another party, before contracts are signed. Gazumping, as it is known, is frustrating but not illegal in Ireland. A booking deposit is a sign of commitment, not a guarantee.
Booking deposit versus contract deposit
The booking deposit is only the first payment. The more significant one is the contract deposit, which is payable when you sign and return the contracts to the seller's solicitor. It is normally 10 per cent of the purchase price, less whatever booking deposit you have already paid. The seller's solicitor then holds that money as stakeholder until the sale closes.
Here is the crucial difference. Booking deposits are refundable, but once you sign the contract, your contract deposit is at risk if you pull out. There can be exceptions, for instance where your solicitor has included a subject to finance clause and your mortgage falls through, but this is why your survey, legal checks and mortgage approval must all be completed before you sign, not after.
Protecting your money
Always pay your booking deposit to the auctioneer, never directly to the seller, and make sure you receive a receipt confirming it is a booking deposit. Ideally, that receipt should also state that the sale is subject to contract and that the deposit is refundable. Before handing over any money, check that the agency is licensed. The PSRA advises the public to do this by searching the Register of Licensed Property Services Providers on its website, psr.ie. Licensed agents must hold booking deposits in a dedicated client account, and strict rules govern how that money is handled.
It is also wise to be alert to fraud. Pay by bank transfer rather than cash, and if you ever receive an email asking you to send money to new or changed bank details, phone the auctioneer on a number you already know to confirm before paying anything.
Auctions work differently
If you buy at public auction, there is no booking deposit stage. When the hammer falls and you are the highest bidder, you sign the contract and pay the contract deposit on the day. Make sure your finance and legal checks are complete well before the auction.
Tips for buyers
Have your booking deposit ready in an accessible account before you start bidding, along with mortgage approval in principle and a solicitor lined up. Agents are required to carry out anti-money laundering checks, so expect to provide photo identification, proof of address and evidence of where your funds are coming from. Being organised from the outset shows sellers you are a reliable buyer, which can make a real difference in a competitive market.
Tips for sellers
A booking deposit is a positive signal, but it does not mean the sale is secure. Ask your auctioneer about the buyer's position, including their mortgage approval and whether they have a property to sell first. Instruct your solicitor early so that contracts can be issued promptly, as the shorter the gap between sale agreed and signed contracts, the lower the risk of the sale falling through.
The bottom line
A booking deposit is a modest but meaningful step in any Irish property transaction. It shows commitment, but until contracts are signed it does not bind either party. Understanding how it works, and how it differs from the contract deposit, helps buyers protect their money and helps sellers manage expectations from sale agreed right through to closing.
If you would like to discuss buying or selling a property, contact us on 0871303206 or email sales@adrianhassett.com or visit adrianhassett.com.
Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.
