| by Kenneth Chase | 6 comments

Buying a Property in Ireland Start to Finish-What Are the Steps in a Conveyance?


okay in this video I’m going to take a
look at buying a house or apartment residential property from start to
finish I’ve been buying property or bought my
first property in 1986 in Dublin so I have bought a fair few and sold a fair few
since then I’ve bought all sorts of properties residential commercial sites buildings
I bought pubs stripped them out but the bottom line is I’ve learned a few
things along the way and from the perspective of somebody looking to buy
their own home for the first time a residential property but it’d be it either an
apartment or b it a house I think I can give you some pointers first thing you
need to consider obviously is the location of your property now the
circumstances that are going to determine the best location for you and
every location won’t be best for you clearly Dublin 4 south side of Dublin
Dublin 2 are the best locations you can get but if you’re working in Longford or working on the south side or working on the north side of Dublin or working in
Mullingar someplace then clearly the very best location in the country is of
no benefit to you so the first thing you need to do is consider your particular
circumstances your particular circumstances are going to be where you
want to live where your work is where your partner’s work is and where you
want to bring up a family and so on and after that then when you decide on the
best location for you I would suggest trying to buy the worst property in the
best location for you in other words you don’t want to get hung up on getting the
very best property or getting a really good property which may be in a location
that doesn’t actually suit you but what you want to do is get the best location for
you and if that involves getting the worst property but the one that you can
afford then that’s probably the one you one you should go with so when you’ve got
the right property for yourself so when you’ve chosen the correct
location for you then you need to negotiate having looked around looked at
the properties you’ve visited a number of properties you have met a number of
auctioneers and so on you need to negotiate to get the property for the
best price you can I would advise you to take what a negotiator or what an
auctioneer says you with a large pinch of salt
because their job is to sell the property on behalf of their client their
client is the vendor their client is not you you’re the punter you’re the
purchaser so just be careful of that in other
words you can trust what they say but verify as Ronald Reagan used to say
trust but verify so take it with a large grain of salt when the sales advice note
comes out after you’ve successfully bought the property what you’re gonna
get is a big ass disclaimer on the sales advice note basically saying that all
representations that were made to you prior to this are subject to contract
contract denied and basically what you’re going to be relying on is what’s
in the contract not what was said before by anybody including the auctioneer so
keep that in mind you need to pay a booking deposit then it’s big difference
between a booking deposit and a contract deposit a booking deposit is just the
deoposit that you paid the auctioneer to secure the property it will be five or
six grand and it’s fully refundable if you change your mind or if the thing
falls through the contract deposit on the other hand is 10% of the purchase
price and that’s payable when you sign the contract but before the contract is
signed thesales advice note will go from the auctioneer to the solicitors for both
the vendor and the purchaser so your solicitor and the vendor solicitor we
get a sales advice note from the auctioneer it will set out some basic
terms including who’s buying the property the location and the price but
also specify any particular special conditions or may specify you set out
some special conditions and it may set out an aspiration or closing date bear
in mind that the closing date is entirely aspirational and the auctioneer
might as well pluck a figure or a date out of his ass quite frankly because you
know it’s all going to depend on a lot of stuff but ultimately closing the
end of contract will have some relevance but the closing date on the sales
advice note won’t really once the sales advice note
goes out to the auctioneers or goes out to the solicitors particularly a solicitor
for the vendor he then must draft up the contract for
sale of property that will be sent to your solicitor along with copy title
documents at that point then your solicitor is going to raise some pre
contract inquiries and make make inquiries about the property those
inquiries are likely to focus on things like services is there public water is there sewerage is there a septic tank what way is the property serviced in terms of
road access is the road in charge of the local authority and so on your solicitor
should also be raising inquiries depending on the contract and depending
on the title documents that are are furnished about planning about building
regulations about any development that might have been carried out on the
property so these are standard bog standard pre-contract enquiries that
your solicitor is going to carry out before he or she lets you or invites you
in his office to sign the contract he’s going to be doing that meanwhile you
need to get your finance in place in relation to finance you need to get a firm
written offer from a lender so approval in principle is one thing a loan pack
a letter of offer with specific special conditions in it is another thing that’s
what you need okay because your solicitor is not going to let you sign
the contract without finance being in place that’s just a prudent measure when
you were fancy or figuring out though your finances you need to consider
outlays that you may not have thought of at first you need to consider property
registrations fees stamp duty legal searches commissioners for oaths
fees and there’s another one or two that may arise but you need to ensure that
you factor in all the outlays all the costs obviously the professional fee for
the solicitor is going to be a cost you you need a factor in as well so all of these
you need to have your hands on and be able to give to your solicitor
before closing so assuming you’ve got your finance in place so assuming the loan pack has come out to your solicitor then your solicitor I’m assuming that your
solicitors satisfied with the replies that he’s received the pre
contracting enqueries assuming that that’s the case then your solicitor is going to
invite you into the office his office or her office to sign the contract and on signing the contract you’re going to be paying 10% deposit 10% of the purchase
price that essentially means that if the house for example costs let’s say 250
grand 10% is 25 grand let’s say you’ve paid 5 grand
booking deposit then your deposit when you’re signing the contract it’s going
to be 20 grand 25 grand that’s 5 grand that’s what you’re gonna have to pony up
on the day that you sign the contract the contract then is or contracts are sent
back to your to the other solicitor by your solicitor and once that happens the
vendor’s solicitor will get the vendor in the vendor signs the contract and sends
one copy back to your solicitor at that stage when the vendor
sends back the contracts signed then and only then it is a binding contract in
place so between them and completion you’re looking at ensuring your finances
in place with a view to the closing date so the closing date then will have been
specified in the contract and that’s what you and your solicitor is going to
have to work towards in terms of completing the transaction excuse me you
need to make sure that the finance is available and sorted out and
whatever special conditions the bank may have imposed you need to be ensured
that they have been complied with because if they haven’t been complied
with the bank won’t release the loan cheque if the bank doesn’t release the loan cheque
then the sale won’t close so the typical issues that might arise in relation to
a loan cheque not being issued or released on time will be
things like life assurance your life assurance not being in place house
insurance not being in place completed Direct Debit mandate not being in place
all of these things need to be in place for the bank to release the loan once they release the loan then your solicitor can complete the sale on the closing date on the closing date what’s going to happen is your solicitor is going to
transfer the closing phones all of the closing funds all of the closing funds to the vendors solicitor and he’s going to get some legal searches carried out to see that
there’s no judgment on the property that you’re buying no judgment registered
since you first signed the contract and now you’re coming up to completion the
legal searches will throw any judgments or anything like that
untitled hopefully none of that will occur but your solicitor will need to take
that prudent step on closing day then the house is to be handed over to you as
the purchaser on closing day and you essentially pick up the keys from either
your solicitor or from the estate agent now you’re entitled to vacant possession
on closing vacant possession sometimes can give rise to disputes
arise because sometimes vendors will leave a whole pile of crap in the house
old furniture especially if the property was let and the vendor may or may not
be too fussy about tidy up or cleaning up and there may be the cost of a skip
involved in getting stuff taken away and so on bottom line is from a legal
perspective you are entitled to vacant possession on closing day and if vacant possession is not being handed over then you’re not obliged to closed so you
know keep that in mind and it’s probably prudent to carry out a pre closing
inspection that is the day before you close just to ensure that there isn’t a
skip or two of rubbish in your back garden or in the front or a whole pile
of rubbish in the in the house a lot of wasted
rotten furniture perhaps beds useless tables and sofas and stuff like that all
of that is going to spoil your enjoyment of taking over the property on
closing day and it’s also gonna necessitate you getting some sort of a
skip in and a waste removal firm involved and it’s going to be a pain in the ass
so that can be avoided by carrying out a pre closing inspection once the sale closes
then your solicitor will authorize the other solicitor to release the funds and
the other solicitor the vendor’s solicitor will authorize the estate agent to
release the keys and you will pick the keys up after that then you move into
the house to do what you like with it and your solicitor then is going to pay
stamp duty and it’s going to register your property or your ownership of the
property that the transfer with the property registration authority and
register you as the new owner he’s also going to register the lenders charge on
the property the lenders mortgage as a charge or a burden on the folio and that
way the lender is secured after that then the solicitor I think for you is
going to send off all the title documents to the lender along with a
certificate of title and that’s job done the bank has lent the money they have
the title deeds you’re living in the house the solicitors done the job and
hopefully everybody will be happy enough for a while anyway
and that’s essentially it from start to finish there may be one or two things
that I have left out there that gives you a broad idea of what’s involved between
looking at a property some of the factors that you need to take into
account when you are choosing one the procedure in point of the contract being
drafted by the vendor or solicitor the pre contract inquiries that your
solicitor has to carry out the various steps you have to take to ensure the
finance in place and ultimately done then completion on closing day that’s the
bottom line that’s start-to-finish hope you find
this video useful if you do give it a thumbs up down below and you may be
interested in subscribing to my youtube channel
a YouTube channel has a lot of videos on it I put one up or two up every week
about some aspect of Irish law whether it’s employment whether it’s property whether
it’s business and people find them pretty useful and as I say if you find
that this one useful I would appreciate it give it a thumbs up down below thanks
for watching

6 Comments

Mr. AdoCall

Aug 8, 2019, 10:49 am Reply

How much will my solicitor cost roughly.

gammypage

Aug 8, 2019, 12:06 pm Reply

Great and funny thanks!

Cathal

Aug 8, 2019, 9:22 pm Reply

You're ahead of the game Terrry 💯👌

Gerard Byrne

Nov 11, 2019, 12:37 pm Reply

Thanks Terry for the video! Is this process broadly the same in a buy to let scenario?

con aran

Jan 1, 2020, 10:51 pm Reply

You make very good videos very educational

clock watch

Jan 1, 2020, 8:55 am Reply

Didn't know vacant possession included ensuring clearance of vendor's crap before signing for ownership of house.

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