BUYING A PROPERTY – THE PROCESS & WHAT TO EXPECT
Buying a property can be a stressful and time consuming process. I have set out below a short overview of the steps involved. If you are thinking about buying a property, please call me to arrange a consultation and I can help guide you through this process. Early morning or late evening appointments are available.
Step 1: BUDGET
It is important to set your budget early. This will narrow your search but will ultimately save you time and heartache. You should alos obtain loan approval in principal from your lending institution. Do not forget to shop around, it is worth spending some time looking at the total cost of finance – it could save you thousands!
You will also need to familiarise yourself with the Central Bank of Ireland’s new regulations on residential mortgage lending. This will impact on your budget. If you are not familiar with the regulations, you can find the necessary information here.
When setting your budget you should also consider the deposit required, your financing needs, Government Stamp Duty, Land Registry registration fees and your solicitor’s fees.
Step 2: CONTACT YOUR SOLICITOR
I would recommend contacting your solicitor at this point. Your solicitor can deal directly with your lending institution, auctioneer and the vendor’s solicitor.
Step 3: SALE AGREED
Once your offer for a property has been accepted you will need to pay a booking deposit to the Auctioneer. This booking deposit is fully refundable up to the point where Contracts for Sale are signed. Once your offer has been accepted you should get in contact with your lending institution and arrange for them to issue a formal loan offer and loan pack to your solicitor.
Step 4: CONTRACTS FOR SALE
After you have paid your booking deposit, your solicitor should receive Contracts for Sale and title documents in respect of the property from the vendor’s solicitor. Your solicitor should then examine the Contracts for Sale and title to the property in order to raise the necessary pre-contract enquiries.
Step 5: SIGN CONTRACTS
Once your solicitor is satisfied with the title to the property they will arrange for you to sign the Contract for Sale. You will need to pay a further deposit upon signing the Contract for Sale, which will be non- refundable. This deposit will be 10% of the purchase price less the amount of the booking deposit already paid to the Auctioneer. The vendor’s solicitor will then arrange for the vendor to sign the Contract for Sale. A closing date for the sale of the property will then be agreed between the solicitors.
Step 6: INVESTIGATION OF TITLE
After you sign the Contract for Sale your solicitor will continue to investigate title and work towards closing the sale of the property. Your solicitor will make sure that all planning permissions are in order, Local Property Tax, NPPR (if relevant) and water charges are paid. Requisitions on title will then be raised by your solicitor, which must be satisfied by the vendor’s solicitor.
Step 7: CLOSING MONIES
Shortly before the sale of the property is due to close, your solicitor will provide you with a statement of account showing what monies are required to close the sale. A statement of account typically includes details of Stamp Duty, professional fees and registration costs. These costs must be paid to your solicitor before closing the sale. Your solicitor will also arrange to draw down the funding from your lending institution.
Step 8: CLOSING THE SALE
On the day of closing, your solicitor will carry out searches on the property and the vendor to ensure that, you, the purchaser, are receiving good marketable title to the property. If your solicitor is satisfied with the search results she will arrange to send purchase monies to the vendor’s solicitor and the vendor’s solicitor will then send the original title documents, together with the keys to the property, to your solicitor. Sometimes, the Auctioneer will hold the keys and the purchaser can pick the keys to the property up directly from the Auctioneer.
Step 9: STAMPING AND REGISTRATION
Following the closing of the sale you will need to attend your solicitor’s office and sign the transfer deed in respect of the property. Once the transfer deed is signed your solicitor can proceed to pay the Stamp Duty and register the same in the Land Registry.
Step 10: TITLE DEEDS
Once registration is complete, your solicitor will arrange to forward the title deeds to your lending institution who will keep the title deeds until the mortgage is paid off. The transaction is then complete and the solicitor will arrange to close your file.