Buying

When buying a property you should note the following:

Survey

You are always advised to engage an Architect or Engineer to carry out a check in the Planning Office of the Local Authority. This check will determine whether there are any developments planned by either the Local Authority or private developers in the vicinity or the property, which may affect your decision to purchase the property.

Loan Approval

You should confirm the identity of your Solicitor to your Mortgage Company and arrange for the Company to forward a copy of your Loan Approval. If the Letter of Loan Approval is not yet available, simply advise your Solicitor of the name of the Mortgage Company and the amount of the proposed loan.

In every case the Letter of Loan Approval will be made subject to a number of conditions. These can include such things as a property survey, Letters of Guarantee, for example. The most common requirements are for you to take out a Mortgage Protection Policy and Building/Fire insurance on the premises. You should proceed to arrange these items as soon as possible to ensure there are no delays in the issue of a loan cheque. Mortgage Protection Policies and Building/Fire Insurance can be arranged with your Mortgage Company, through a Broker or independently.

Binding Contract

In Ireland, the Contract does not become binding until such time as it has been signed by both the Seller and the Purchaser, the signed Contracts exchanged between their Solicitors and a full deposit paid. In most cases, the full deposit is 10% of the total purchase price, and this money may be required of you before your mortgage can be drawn down. Until such time as this has occurred, either party is entitled to withdraw from the transaction. In these circumstances, the full deposit is refundable to the Purchaser. Your Solicitor will advise you when your Contract for sale has become binding.

It is vital that all funds for your purchase are in place for the closing date, particularly if you are funding any part of the purchase from your own funds. Failure to complete the purchase on the closing date can have important consequences, as you may become liable for interest from the closing date to the date of eventual completion, you may have to forfeit your deposit and/or be subject to court proceedings which seek to oblige you to complete the transaction.

New Houses

If you are buying a new house in the course of construction the Contract may be made up of two separate documents, namely the Conditions of Sale and the Building Agreement. Again, a sum of approximately 10% of the total price payable is required on completion of these documents, and in many cases this can be as much as 15% of the total purchase price. You should ensure that these monies are available when signing your Contracts, as your mortgage will not normally be available to you to meet this requirement.

When the House is completed a snag list should be prepared by a qualified professional (often your Architect / Engineer) and final monies are drawn down from your Mortgage Company.

Contents

If there are any contents to be included in the contract price or additional to the contract price, you should advise your Solicitor immediately and prepare a list of the items and the agreed value of same.

Please note that since Budget 2008, the contents of residential property are no longer taken into account when calculating stamp duty. It is therefore extremely important that an accurate and bona fide valuation of the contents be performed.

Stamp Duty

The Purchase Deed may be liable for stamp duty. Since Budget 2010, all purchases of property are stampable at a flat rate of 1%.

Martial Status

There are various laws which require that your Solicitor must enquire as to your Marital Status in the course of a property transaction. If you are married, your Solicitor will require a copy of your long form State Marriage Certificate. In addition, if you are divorced, separated, or widowed and remarried, your Solicitor will need a copy of the appropriate certificates and/or court orders where applicable.

Identity

Please refer to Solicitor's Obligations under the Criminal Justice Act