Buying Property

There are a number of things you need to consider before you do so. Below, we’ve outlined the steps involved in buying property here in Ireland.

Find out what you can afford

It is important to evaluate all costs involved in buying a home, for example, mortgage costs, legal fees, registration of deeds and stamp duty. The amount of money that you can get as a mortgage loan is governed by Central Bank lending limits – click here to see  these rules. If you have calculated that you can afford to buy a property, taking all of these factors into account, then you are ready to buy.

Get a solicitor

Conveyancing is the legal work involved in buying or selling property. Conveyancing charges can vary between solicitors, so it is worth contacting several solicitors to compare prices.

Find a property you like and can afford

Property websites, auctioneers and estate agents are the main ways of finding property for sale. There is a public register of auctioneers and estate agents on the website of the Property Services Regulatory Authority.

Sometimes individual sellers advertise their property themselves. Newspapers may also have property supplements or publish advertisements for properties for sale.

Get a survey

A seller is under no obligation to disclose defects in a property. You should get a survey of the property to find out if there are any defects before finalising the purchase. The Society of Chartered Surveyors Ireland (SCSI) is the professional body for chartered surveyors.

Get mortgage approval

Very few people can buy a home without getting a mortgage. A mortgage is a long-term loan secured against the property you buy. This means if you don’t repay your mortgage you may lose your home.

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. More information on mortgages and choosing the best one for you is available from the Competition and Consumer Protection Commission.

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. However, when you find a property you like, you must get formal mortgage approval before you sign the contract for sale. If you sign a contract for sale and subsequently don’t get mortgage approval, you will lose your deposit and there may be other penalties.

How to buy the property you want

The two most popular methods by which properties 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 seller or 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 seller or the 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.

Before the auction takes place, your solicitor should check the contract for sale for the property (issued by the seller's solicitor) and all title documents that are referred to in that contract. When your solicitor has satisfied his or her enquiries, you can organise a survey of the property to ensure it is sound. It is also advisable to get formal mortgage approval for the property you wish to bid for.

The successful bidder immediately pays a deposit and signs the contract for sale (see below). It is important to get home insurance as soon as possible.

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.

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.

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.

Once the Deed of Conveyance is approved by the seller's solicitor, your solicitor will contact your mortgage provider to request the issue of the approved loan cheque. 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.

Stamp duty

Your solicitor will calculate how much stamp duty is due and request this from you before the closing of the sale. The stamp duty 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 (PRA) LINK TO https://www.prai.ie is responsible for both systems of registration.

Your solicitor will continue to assist you with finalising the deeds to your house with the PRA. This can take from months to years to complete. Even if it does take a long time, you are still the owner of the property and, if you wish, you can sell the property before registration is complete.