Whether you are selling or buying a property, getting to the ‘Sale Agreed’ stage in a property transaction is an important step. It follows the marketing and price-negotiation stages and means that both parties have agreed on a price, and that the property is effectively ‘off the market’. It is important to appreciate, however, that this does not mean that the sale is legally binding – there are some additional steps to be taken before the sale completes.
Here is what you can expect after going ‘Sale Agreed’.

Property taken off the market

Once a sale is agreed, the estate agent will:

• Ask the buyer to pay a booking deposit to them. Effectively, this is a payment that will go towards the full 10% deposit. It is fully refundable up until the point that contracts are exchanged,
• Ask the solicitors acting for the seller to send out contracts,
• Change the ‘For Sale’ sign to ‘Sale Agreed’ – and do the same on their website,
• Stop marketing the property.

An agent is, however, obliged to let a client know of any offer made for a property. It is possible that, following the ‘sale-agreed’ stage, an increased offer could be made and accepted by the seller. This, however, is rare.

Survey

For second-hand properties, the system is one of ‘buyer beware’ in terms of the condition of the property. The seller is not obliged to disclose any defects, and the buyer cannot come back to the seller after the sale closes if defects are found. Therefore, one of the first things a buyer should do is to arrange for a property survey to be carried out. This is an inspection performed by a qualified surveyor to assess the condition of the property.

Engaging solicitors

Both the seller and the buyer will need to appoint a solicitor to handle the legal aspects of the sale. The seller’s solicitor will prepare a contract pack, which includes:

• The contract,
• Copy of title deeds,
• Replies to requisitions on title, which are a set of questions on title issues, including easements (also known as ‘rights of way’), charges, property taxes, services (water sewage, etc), and access,
• Planning documents.

The buyer’s solicitor will review these documents, raise any necessary queries, and conduct searches to ensure there are no legal or planning issues affecting the property.

Mortgage

Prior to a sale being agreed, a buyer may have mortgage approval in principle from a bank/lender. Once the sale is agreed, they will need to apply to the lender for a ‘Letter of loan offer’, which relates to the specific property and the price being paid. The lender will typically require a mortgage valuation before issuing the letter of offer. This is separate from the survey referred to above, as it is a valuation – and not a structural survey.

Signing contracts

Once any legal queries have been answered, the searches are clear (that is, no issues have been identified), all required finances are in place, and the buyer is satisfied with the survey, the contracts are signed by the buyer and sent to the seller’s solicitor with the balance of the 10% deposit. At this stage, the closing date is finalised. The date is often discussed at an earlier stage but, until contracts are signed, it is difficult to make firm plans.
On receiving the contracts (signed by the buyer) and the deposit, the seller countersigns the contracts and one copy is sent back to the buyer’s solicitor. This is called ‘exchange’ and is the point at which the sale becomes legally binding. There are legal and financial consequences for either party if they withdraw after this point.

Closing date

This is the day on which the balance due is paid to the seller through the solicitors, and the keys of the property are given to the buyer.
Going ’Sale Agreed' is an exciting step, but it is just one part of the property journey. Buying or selling property can be stressful and, at times, complex. For all involved, planning early, staying organised and maintaining good communication moves things along more smoothly.

Suzanne Bainton is a partner at Liston & Company in Dublin. Suzanne qualified as a solicitor in 1998. She practises mainly in the areas of property and probate and specialises in the area of multi-unit developments. Suzanne is a member of the Law Society of Ireland’s Conveyancing Committee.

Disclaimer: Please note that this article is for general information purposes only and does not purport to be legal advice. While every care has been taken in its production, no legal responsibility or liability is accepted, warranted or implied by the author, publishers, or the Law Society of Ireland in respect of any errors, omissions, or misstatement. Readers are advised to seek independent professional legal advice before buying/selling a property.