Buying or selling your home can be one of the most exciting and stressful things you can do, in equal measure. If you are buying your first home, congratulations! The initial steps are obviously to negotiate the best possible price for the property with the auctioneer. Once you have the sale agreed the auctioneer will ask for a booking deposit. This is a sum of money which they will hold on trust to hold your interest in the property. If at any time in the transaction, up to the point you sign the contract, you change your mind, this booking deposit is fully refundable. Once you have gone sale agreed, the auctioneer will inform the vendor/selling solicitor to then send the draft contracts for sale with supporting documentation including title, planning and building regulations info to the purchasing solicitor for investigation. If you are using a mortgage to purchase the property you must now inform your bank of your own solicitor details so the mortgage company will send a copy of your loan offer to your own solicitor for review also.
With respect to the legal and associated costs with purchasing a property please note that you must pay stamp duty to the revenue commissioners. The stamp duty is 1% of the purchase price. These sums should be paid to your solicitor on or before the closing date as the solicitor pays this tax on your behalf on line through the revenue on line system. There are also items of outlay that you must pay – you must pay the property registration authority a fee, usually between €600 and €800 to register your interest as new owner of the property. If there is a mortgage there is a further charge of €175 due to the P.R.A. on the day of closing the solicitor will also requisition searches as against the seller, you and the property itself. This is to ensure there are no last minute loans registered against the property and also to ensure no one in the transaction has been declared a bankrupt. A third party agency usually carries out these searches for a fe of between €100 and 120 . with regard the legal fee itself the solicitor must present this to you in detailed form before you start the transaction there will also be a vat element on this fee along with a payment for postage and petties.
If you are selling your home, one of the first things to organise is to get redemption figure from your mortgage company to ensure the sale agreed price will cover payment of the entire remaining mortgage. Also, you must retrieve the original title deeds of the property and get them sent to your solicitor so they can begin to draft the contracts for sale.
If you would like to discuss these matters further please don’t hesitate to get in touch.