Here's one I did earlier......................
Step by Step guide to house purchase
Notes: Stamp Duty is 1% of the price up to €1m and 2% for any amount over- payable at closing.
Where do you want to live?
We’d all love to live near the sea in Sandymount or Clontarf. But we can't all afford to so.........
Work out what you can afford to borrow/repay and then look in the areas you can afford that most tick the “wish list”
WISH LIST
Location
Are there shops and a park within walking distance?
What type of property? House? Apartment?
Size- do you need a four bedroom house or a tiny studio style space?
Public transport- is there a good bus route?
Aspect? A dark house/apartment is not a good place to live
Garden?
Parking –space for you and for visitors
Near schools?
How much can I borrow?
Guideline is 4 or 5 times single salary or combined income subject to repayments accounting for no more than 35% of net income
You will need 10% of the purchase price yourself – be that in your own savings (best) or gift from parents. You’ll also need money for solicitor’s fees and registration fees together with the costs of a surveyor and your stamp duty at 1%. None of these are factored in to your mortgage, you have to discharge them, at or before closing, from your own resources
1. BUDGET / QUOTE
You need to carefully budget before considering any property. This involves calculating the funds at your disposal either on deposit or cash, estimating the value of your equity in your existing house, if applicable, getting a quote from a Solicitor of the costs involved in purchasing and obtaining approval in principal from a lender-this gives confidence that a lender will lend a certain amount of money when a property is found.
There’s no point looking at mansions on Merrion Road if your budget runs to €350,000.00.
2 APPOINT A SOLICITOR
Contact your Solicitor to open a file and commence the transaction. You will need to provide the solicitor with Anti Money Laundering ID (Passport and utility bills) and also your PPS Number – this is needed for stamping your Deed. If you are, or ever were, married, you’ll also need to provide a copy of your Civil Marriage Certificate – marital status impacts on property transactions and you will be signing what is called a Family Law Declaration which will exhibit your Civil Marriage Certificate.
3. PAY
Once you have decided to proceed with the purchase of the house and have been approved, at least in principle, for the loan, you should pay a booking deposit to the Estate Agent. Booking deposits can be as low as €3,000 but can be up to 3%. This deposit is refundable up to the point where contracts are signed. When the Estate Agent receives the booking deposit they issue a sale details to all parties.
Note on the booking deposit: this is how the Estate Agent makes sure he gets paid! He holds this money until the sale goes through and then deducts his fees and pays the balance back to the Vendors. If the sale collapses before completion he refunds the money back to the Purchaser.
4 SALE DETAILS
This is prepared by the Estate Agent and issued to you, your Solicitor and the Vendor’s/Builder's Solicitor. It contains the price, conditions of sale, estimated closing date, names and addresses of all parties.
5 CONTRACTS RECEIVED . APPOINT ARCHITECT/ENGINEER
The seller's Solicitor on receipt of the Sale Details, will issue the Contracts. The Contracts are sent in duplicate together with a copy of the Title Deeds to your Solicitor. The Contracts will give details of any issues affecting the property e.g. unauthorised extensions or unreasonable closing date demands. You would expect a mid-late August closing date for a house going Sale Agreed now. Any closing date conditional on the Vendors finding alternative accommodation should be resisted – it can stretch out for months.
Once we see what is in the Contracts about any planning issues, you need to get an Architect/ Engineer to inspect the house and give you a report on the condition and likely costs of any remedial work. You buy the house as it stands and if you later discover dry rot or rising damp, you have no come back against the vendors. Caveat Emptor.
6 LOAN OFFER
Once your Bank/Building Society has formally approved your loan in writing on the basis of the price of the house and information furnished by you, a formal loan pack is issued. Normally a Letter of Offer setting out the main details of the loan is issued to you and the Loan Pack comprising Mortgage Documentation, Acceptance of Letter of Offer and Assignment etc., is issued to your Solicitor. When your Solicitor has checked the Loan Pack and discussed key terms with you, various documents are signed and completed to enable the Bank/Building Society to proceed. This offer will include all the particulars of the mortgage such as rates and repayment term.
7 SIGN CONTRACTS, PAY DEPOSIT
When your Solicitor has checked the Contracts you will be required to visit your solicitor to sign the Contracts and pay the Contract Deposit (usually 10% of the purchase price less booking deposit already paid). Your solicitor returns the Contracts in duplicate signed by you together with the Contract Deposit to the Seller’s Solicitor.
In todays uncertain climate we will try to insert a “Loan Cheque must issue” clause in the contract – so that the sale is conditional on the Loan Cheque issuing. This is not always possible.
8 CONTRACTS EXCHANGE
The Seller's Solicitor returns one copy of the Contract signed by the seller. This creates a binding agreement between all parties, subject to the terms and conditions contained in the Contract.
9 LIFE INSURANCE/HOME INSURANCE
All lenders require you and your partner to have Life Insurance, or more commonly known as Mortgage Protection and also House Insurance. If either you or your partner dies before the mortgage has been repaid, insurance is designed to cover the mortgage amount outstanding, at the very minimum, depending on the type of life cover selected. Home Insurance is also necessary and is required by all lending institutions to insure your home and property against e.g fire, theft. This step often takes longer than many buyers expect so allocate time to making it happen.
10 LOAN ACCEPTED
On exchange of Contracts, your Solicitor returns the loan acceptance and ancillary documents to your Bank/Building Society.
11 TITLE WORK
Your Solicitor raises Requisitions (lengthy Questionnaire) on Title and these are sent to the Sellers Solicitor together with a draft Purchase Deed. The Sellers Solicitor replies in writing to the Requisitions received from your Solicitor and approves the Deed.
12. CLOSING
Once all queries raises and the Requisitions have been satisfied and all matters are dealt with a closing date and time is finalised to suit all parties. You should check with your Bank/Building Society that everything is in order to allow the loan cheque issue. A common cause of delay is that the Life Insurance or Fire Insurance has not been taken out in time. Your Solicitor will prepare a Statement setting out the balance required to complete the purchase and costs. This is sent to you in advance of the completion in order that you can deliver the balance of funds to your Solicitor (see 15 below). This takes into account any extras or allowances agreed by you and the Seller.
13. LOAN CHEQUE
This is received in advance of the completion date.
14 BALANCE OF FUNDS
These are delivered by you to your own solicitor, by Bank Draft made payable to your Vendors’ Solicitor in advance of the completion date. Normally the loan cheque, balance of funds and fees are received the day before the completion date. You will also need to pay your Stamp Duty to your solicitor before you close.
15 CLOSE SALE AND MOVE IN
The completion is the formal completion of the purchase. This takes place at the Vendor’s Solicitors offices. You do not need to attend as your Solicitor will represent you. Your Solicitor checks the Vendor's Title and when he/she receives good Title with fully signed documents hands over the balance of the purchase price. At that stage keys are handed over to your Solicitor.
16 SIGN DEED
After the sale is completed you must sign the Purchase Deed. This document is only handed over to your Solicitor at the closing and is not available for signature by you prior thereto. You must sign immediately following the closing as there are strict time limits for stamp duty.
17 STAMPING/ REGISTRATION
Following signing by you of the Purchase Deed your Solicitor will proceed to stamp the Purchase Deed and Mortgages and then register same in the Land Registry/Registry of Deeds. Registration can take months, if not years, depending on the County and type of property involved.
18 REGISTRATION COMPLETE
At this stage you are registered as owner of the house in the Land Registry. Legal ownership to the property passes to you on completion of the purchase but registration may take a minimum of 6 months. This delay does not in any way undermine the fact that you are the legal and beneficial owner of the property. Indeed you can sell a property even though registration has not been finalised in the Land Registry.
19 FILE CLOSED
Your Solicitor, on completion of registration, returns your Title Deeds, to your Bank/Building Society together with a Certificate confirming that you have acquired a good marketable Title. Usually, you will be notified that registration has completed and the Title Deeds have been returned. At this stage your Solicitor closes off your file.