Buying a house is one of the most important purchases you will make during your lifetime. Therefore, it is important that you are properly advised and kept fully informed at each stage of the process.
Going “Sale Agreed”
Once you have found the home of your dreams and negotiated the right price, the next stage is to pay the booking deposit to secure the property from being sold to someone else while the legal work is underway. This is paid directly to the auctioneer or estate agent and is anything up to 5% of the purchase price. This deposit is fully refundable up to the point that you sign the contracts. On paying the booking deposit the estate agent will send out a letter called an “Advice Note” to both the seller’s and buyer’s solicitors. The Advice Note sets out the main details of the sale and includes the seller’s and buyer’s full name, the address of the property, which is the subject of the sale, the agreed sale price, and the seller’s and buyer’s solicitors contact details. If contents are included in the sale, the Advice Note should set out the list of contents to be included in the sale and their value. The value of the contents may be of assistance in reducing the stamp duty payable on the transaction. The property at this point is considered to be “Sale Agreed”.
Structural Survey for Second-hand Property
A structural survey is not normally necessary for newly built properties as they usually come with a Home Bond warranty or Premier Guarantee. If, however, you are purchasing a second-hand property, even a recently constructed property, it is strongly advised that you arrange for a qualified engineer or architect to conduct a survey of the property to ensure that the property is structurally sound.
This survey will confirm the boundaries of the property match the map of the property. The person carrying out the survey should also check whether there have been any extensions or alterations carried out to the property. This is a matter which can often cause serious difficulty in a sale. If any structural change has been carried out to the property, no matter how minor, it will at the very least require an architect’s certificate stating that it is exempt from planning permission and is in compliance with building regulations. This certificate should be retained with the title deeds for all future sales.
Obtaining Finance
If you are taking out a mortgage, it is important to secure finance for the transaction as soon as you have paid a booking deposit. You can do this by contacting a mortgage broker or your bank. There are a number of brokers working in the area who are in a position to negotiate with a number of banks on your behalf. Alternatively, if you have a good relationship with your bank, they may be able to offer you loan approval. This stage of the process can be very time consuming and should be started as soon as possible.
Once your loan approval is secured, you must give the mortgage broker or bank your solicitor’s contact details. The bank will arrange to issue the loan pack to them. This loan pack will include all the documents you need to sign to obtain a mortgage on the property you are buying. The bank will also forward a copy of the loan offer to you for your records. You should check through the details on the loan offer to ensure that the details contained within it are correct. In particular, make sure you confirm the amount of finance offered, the address of the property you are buying and the interest rate stated.
Joyce A. Good Hammond is partner in Hammond Good LLP and works in a General Practice specialising in Conveyancing. She is a member of the Law Society of Ireland’s Conveyancing Committee since 2010 and has given a number of presentations at various CPD events. She acts as an Expert Witness for various firms in Conveyancing and Litigation matters. Joyce also tutors for the Law Society on a number of their Professional Practice Courses which include Conveyancing and Landlord and Tenant.
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.
