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Steps Involved In Buying A Home |
INTRODUCTION
At some point in your life, you may wish to buy a home. This is a big decision. It can be a difficult and stressful time. Here we look at the different stages involved in buying a home.
Get mortgage approval
Very few people have the funds to buy a home without getting a mortgage. There are different types of mortgages and different mortgage providers. Contact a number of different mortgage providers to find out who can offer you the best deal. You can get mortgage approval in principle before you start to look for a property; this will let you know how much you have to spend.
Find Out What You Can Afford
After receiving mortgage approval in principal it is important at this stage to carefully evaluate all costs involved buying a home, for example, mortgage costs, legal fees, registration of deeds, stamp duty, etc. If you have calculated that you can afford to buy a property taking into account all of these costs, then you are ready to buy.
Get A Solicitor
It is not possible to fully go through the purchase or sale of a house without advice from the legal profession. This is a specialised area of law called conveyance. Conveyance charges can vary between solicitors so you should contact a number of different solicitors to compare prices.
Find A Property You Like And Can Afford
There are many ways to find the property you want to buy but the usual way is via a local auctioneer. Call into us today and we will be glad to assist you. Other ways to find properties for sale include websites, newspapers and signage in front of individual properties.
How To Buy The Property You Want
The two most popular methods by which properties in Ireland are purchased and sold are:
- Private treaty sales
- Public auction
Private Treaty Sale
A private treaty sale is where the property is not put into an auction. You can contact the the seller’s agent, usually an estate agent, to agree a purchase price.
Public Auction
Notice of the date and time of the auction is usually advertised in a local newspaper, estate agent or by a sign on the property. A reserve figure is set for the property, usually by the owner or auctioneer. The reserve figure is the value the property must achieve; anything below this and the property will be withdrawn from the market.
At all times during the auction, however, the vendor (seller) can withdraw the property from the market, even if it has achieved the reserve figure. The vendor can also reserve the right to sell the property before the auction.
Get A Survey
A seller is under no obligation to disclose defects in a property. Get a survey to find out if there are any defects before finalizing the purchase of the property.
Sign The Contract For Sale
The contract for sale binds the parties to the completion of the sale. If you withdraw from the sale after this contract has been signed, you may lose your deposit. If you buy at auction you must immediately sign the contract for sale, if you buy through private treaty your solicitor will check that the contract is in order before you sign it.
CLOSING THE SALE
Requisitions on Title and Deed of Conveyance
After signing the contract and before the completion date of the sale, your solicitor raises some general queries about the property with the seller’s solicitor. Requisitions on Title are a standard set of questions relating to the sale of a property that deal with such things as whether fixtures and fittings are included in the sale, it’s a little like a checklist.
When your solicitor gets a satisfactory reply to Requisitions on Title, a Deed of Conveyance is drafted by him or her and approved by the seller’s solicitor.
Once the Deed of Conveyance is approved by the vendor’s solicitor, your mortgage provider will be contacted by your solicitor to issue the approved loan cheque from your mortgage provider. This is the remaining balance of the purchase price. It is paid to the seller’s solicitor and all documentation, and keys to the premises are handed over to your solicitor.
Your solicitor makes arrangements for searches to be made against the seller to ensure that there are no judgements lying against the seller (for example, bankruptcy or sheriffs’ searches). Your solicitor should also conduct a search where the title to the property is held (either in the Land Registry or the Registry of Deeds) to ensure that there is nothing adverse attaching to the property, for example, an outstanding mortgage.
Stamp Duty
Your solicitor will calculate how much stamp duty is due and request this from you before the closing of the sale. The amount is paid to the Revenue Commissioners who place a stamp on the deeds. Without this stamp, the deeds cannot be registered. The deeds name the owner of the property.
AFTER THE SALE IS COMPLETED
Deeds
Once a sale is completed, your deeds, showing the new ownership details and mortgage details, if relevant, must be registered with either the Registry of Deeds or the Land Registry. The Property Registration Authority is responsible for both systems of registration.
Your solicitor will continue to assist you with finalising the deeds to your house with the Property Registration Authority.
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