Verbal agreement on House - steps to follow.

Hi all,

I am in a state of ecstacy here. We have just heard that our bid has been accepted on a house which we love (after months of viewing and viewing!)

Now that reality has hit, we realise how little we know about buying a house so just a few general questions. (if this is on another thread, I apologise but I couldn't find a simple answer..)

1. The EA is looking for a booking deposit of €5500 which obvisouly they have asked for as soon as possible. Before we hand it over, what should we be asking or need to know? Is this deposit refundable in the event we pulled out?

2. After we pay the deposit and they send the papers to the solicitor, what happens?

3. At what point does the surveyor appear and the valuation occur?

4. Any other obvious points we should be asking?

All help appreciated!

1. Yes, the deposit is a goodwill gesture and will be returned if either party withdraws prior to signing contracts. You should get a receipt that confirms it's subject to mortgage, title and survey.

2. Your solicitor will check the contract, the title and raise any queries with the vendors solicitor in respect of any additions to the house, etc. At the same time you should (if you haven't already) formally apply for the mortgage.

3. You can arrange for a surveyor at any time - the mortgage valuation is carried out once the mortgage is approved. Depending on your lender the surveyor may be able to do the valuation as well, this should save you some money.

4. You should also get your mortgage protection (life assurance) application underway and, once the valuer has established the reinstatement (rebuilding) cost of the house you should shop round for household insurance. Other things to consider are applying for the services to be transferred into your name, quotes for removals or van hire to move it and never going out again

Sarah

www.rea.ie

P.S. Forgot to say - congratulations!!

1. The EA is looking for a booking deposit of €5500 which obvisouly they have asked for as soon as possible. Before we hand it over, what should we be asking or need to know? Is this deposit refundable in the event we pulled out?

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This is normal and is refundable up to the signing of the contract. It seems a little on the high side. Signing normally takes place within 3 weeks but can be longer. Keep after your solicitor.

2. After we pay the deposit and they send the papers to the solicitor, what happens

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You sign the contract and pay the remainder of the 10% of the agreed price of the property. Keep a eye out for anything that the selller may be taking with them. (certain light fittings etc. Ask your soicitors to point this out to you in the contract if unsure). The papers are then sent back to the sellers solicitor to get the sellers signature. Until both parties sign the contract, both sides can pull out. You may have to keep after your solicitor to make sure the other side have signed the contract.

At what point does the surveyor appear and the valuation occur?

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I would get a surveyor out a soon as possible. This should have been done prior to buying. Don't sign the contract until survey completed.

4. Any other obvious points we should be asking

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I take it you have your mortgage in place.
You will be asked to get mortgage protection cover. You do not have to go with the mortgage provider. Check around for a quote. You could try labrokers here.
Ask your solicitor for a quote for his fee and expected expenses in writing.
Does this include VAT. VAT will be payable on the solocitors fees @ 21%

Good luck with the new house. If you are having any problems post on AAM again either on this tread or open a new tread. I'm sure someone will help.

Post crossed with Sarah's

Thanks for the constuctive advice guys.

I am finalising my mortgage details at the minute and arranging to get a family member to look at the house so i am sure I will have further questions to add to this post.

Past posts on solicitors etc. are proving very helpful!

I have been reading past threads on recommended solicitors and surveyors, some of which are a year or two old. Does anyone have any more recommendations or indeed has anyone used any of the following of late:

homebuyhomsell.ie
Mary Keane or Dermot Deane Solicitors
PAt MCGovern & Assoc. Surveyors
Noel LArkin & Assoc. Surveyors

Obviously "cheap" and "effective" are the words of the day.

If you are getting a mortgage of €250,000 or more and arrange your mortgage via REA the legal fees are €499 + VAT and outlays.

Sarah

www.rea.ie

Newbie! said:

I have been reading past threads on recommended solicitors and surveyors, some of which are a year or two old. Does anyone have any more recommendations or indeed has anyone used any of the following of late:

homebuyhomsell.ie
Mary Keane or Dermot Deane Solicitors
PAt MCGovern & Assoc. Surveyors
Noel LArkin & Assoc. Surveyors

Obviously "cheap" and "effective" are the words of the day.

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Newbie,

I've used Pat McGovern recently. I wouldn't say they're cheap.
400 (survey) + 50 (valuation) + VAT = 544 (1300 sq ft house).
I'm probably changing lenders, and they've agreed to do the additional valuation at no extra cost.

They gave me an excellent, comprehensive written report, and I had 2 lengthy conversations with the surveyor who did the survey.

I found them to be professional, and I'd recommend them - I have no affiliation with them, other than as a satisfied customer.

It's good to hear objective opinions.

If we use our current broker, we dont have to pay the valuation - small thing but one less payment all the same.

Will probably use PAt McGovern on the basis of your satisfaction...

asdfg said:

I would get a surveyor out a soon as possible. This should have been done prior to buying. Don't sign the contract until survey completed.

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One quick point on this. While the OP should sort out a surveyor quickly, the comment about how it should have been done prior to buying is a little odd. What do you mean by 'buying'? Sale agreed or signing the contract? If the former, then that's simply not feasible. I've found myself bidding on something like ten houses over the last couple of months. A proper survey on those would have been in the order of 300 quid each, which is a few grand down the plughole when the price goes over your limit.

Maybe I'm misunderstanding what you're saying, though.