This section outlines
general guidelines for buying your second-hand home in Ireland.
Before considering any property you need to carefully budget.
This entails calculating the funds at your disposal either
on deposit or cash, estimating the value of your equity in
your existing house, if applicable, getting a quote from a
Solicitor of the costs involved in purchasing and finally
establishing the level of loan for which you will qualify
for with your Bank/Building Society.
Usually you contact your Solicitor and complete the Information
Sheet to instruct them to act and they will open a file and
commence the transaction.
Once you have decided to proceed with the purchase of the
house and have been approved, at least in principle, for the
loan, you should pay a booking deposit to the Estate Agent.
This deposit is refundable and is usually up to 3% of the
purchase price. When the Estate Agent received the booking
deposit they issue a Sale Details to all parties.
This is prepared by the Estate Agent and issued to both the Seller and Buyer and their respective Solicitors. It contains the price, conditions of sale, estimated closing date, names and addresses of all parties.
The Vendor's Solicitor on receipt of the Sale Details, provided they have received Title Deeds, will issue Contracts. The Contracts are sent in duplicate together with a copy of the Title Deeds to your Solicitor.
Once your Bank/Building Society has formally approved your loan in writing on the basis of the price of the house and information furnished by you, a formal loan pack is issued. Normally a Letter of Offer setting out the main details of the loan is issued to you and the Loan Pack comprising Mortgage Documentation, Acceptance of Letter of Offer and Assignment etc., is issued to your Solicitor.
When your Solicitor has checked the Contracts (see 5 above) you will be required to sign the Contracts in duplicate and pay the Contract Deposit (10% of the purchase price less booking deposit already paid). This is done at your Solicitor's Office.
When your Solicitor has checked the Loan Pack and discussed key terms with you, various documents are signed and completed to enable your Bank/Building Society proceed.
Your Solicitor returns the Contracts in duplicate signed by you together with the Contract Deposit to the Vendor's Solicitor.
The Vendor's Solicitor returns one copy of the Contract signed the Vendors once they have formally agreed to proceed with the sale to you. This creates a binding agreement between all parties, subject to the terms and conditions contained in the Contract.
On exchange of Contracts at 10 above, your Solicitor returns the loan acceptance and ancillary documents to your Bank/Building Society.
Your Solicitor raises Requisitions (lengthy Questionnaire) on Title and these are sent to the Vendor's Solicitors together with a draft Purchase Deed.
The Vendor's Solicitor replies in writing to the Requisitions received from your Solicitor and approves the Deed.
Once all queries raised and the Requisitions have been satisfied and all matters are dealt with a closing date and time is finalised to suit all parties. You should check with your Bank/Building Society that everything is in order to allow the loan cheque issue. A common cause of delay is that the Life Policy or Fire Insurance has not been taken out in time.
Your Solicitor will prepare a Statements setting out the balance required to complete the purchase and costs. This is sent to you in advance of the completion in order that you can deliver the balance of the funds to your Solicitor (see stage 17).
This is received in advance of the closing date.
These are delivered by you to your Solicitor by Bank Draft payable to your Solicitor, in advance of the completion date. Normally the loan cheque and balance of funds are received the day before the completion date.
The closing is the formal completion of the purchase This takes place at the Vendor's Solicitors offices. You do not need to attend as your Solicitor will represent you. Your Solicitor checks the Vendor's Title and when he/she receives good Title with fully signed documents hands over the balance of the purchase price. At that stage the keys may be released to you by the Estate Agent following a phone call from the Vendor's Solicitors or directly to your Solicitor. Clarify arrangements for keys with your Solicitors well in advance of the closing date and also check if there is an alarm code for the house.
After the sale is closed you must sign the Purchase Deed. This document is only handed over to your Solicitor at the closing and is not available for signature by you prior thereto. You must sign immediately following the closing as there are strict time limits for stamp duty.
Following signing by you of the Purchase Deed your Solicitor will proceed to stamp the Purchase Deed and Mortgages and then register in the Land Registry/Registry of Deeds. Registration can take months, if not years, depending on the County and type of property involved.
At this stage you are registered as owner of the house in either the Land Registry or Registry of Deeds. Legal ownership to the property passes to you at the closing stage but registration may take a minimum of months or longer. This delay does not in any way undermine the fact that you are the legal and beneficial owner of the property. Indeed you can sell a property even though registration has not been finalised in the Land Registry or Registry of Deeds.
Your Solicitor, on completion of registration, returns your Title Deeds, to your Bank/Building Society together with a Certificate confirming that you have acquired a good marketable Title. Usually, you will be notified that registration has completed and the Title Deeds have been returned. At this stage your Solicitor closes off your file.
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