Selling investment property to tenant - how long and what is involved

Vonnee

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Hi

Tenant and I have agreed price. They are mortgage approved, their broker is saying 6 weeks for funds. I continue to charge rent to encourage them to keep process moving.

Outstanding mortgage with UB < 50% of price. I instructed solicitor this morning who advised me to sign authority to get deeds from UB, proof of NPPR and LPT which are underway and BER cert.

Any advice on any of the above and fees for a BER cert?

Any experience of timelines involved here - have good relationship with tenant but don't want it dragging on either....but every month's rent reduces mortgage further.

Von
 
Any advice on any of the above and fees for a BER cert?
My reading of the law is that you only have to produce a BER cert if advertising on the open market, not for an off-market sale like this.

If the solicitor insists, you might as well arrange the cert yourself rather than let the solicitor bill you for doing so.

It costs about €250 and you can find providers on seai.ie.
 
I instructed solicitor this morning who advised me to sign authority to get deeds from UB, proof of NPPR and LPT which are underway and BER cert.
You've literally just started the process. It could take weeks just to get deeds from the bank. I've no idea what timeline is like with UB at the moment. Then your solicitor reviews deeds and prepares contracts, sends to purchasers solicitor who will review, and ask lots of questions.
If you get deeds quickly, and there is nothing unexpected you'd be lucky to get it done in 6 weeks from when your solicitor gets deeds. If there are any questions over planning, boundaries, etc it'll take longer.
 
Thanks - I was a bit surprised that a BER cert was needed in this case for sure - if I can avoid it I will as the tenants are well aware of the energy status of the house from living there.

Solicitor was hoping for 2 weeks for deeds back from UB - he felt the tenant getting funds drawn down will be the thing that will determine the closing. I am not in a particular rush - will need the funds in late 2022 but am happy to no longer be a landlord even though my tenants are very nice, not demanding and no issues with rent etc.

Just looking for some guidelines of timelines I guess.

Thanks
 
Thanks - I was a bit surprised that a BER cert was needed in this case for sure - if I can avoid it I will as the tenants are well aware of the energy status of the house from living there.
The legislation offers no exemption for off-market sales.
 
Your Tenant should also organise a survey, a Solicitor doing their job, would recommend this to them.

On selling a property recently to a relation, I organised this and paid for same, so as there would not be any issues down the road. Surveyor rightly said, that the report would be sent to the purchaser.

Even with a smooth transaction like I had, it was over 3 months from start to finnish.
 
The legislation offers no exemption for off-market sales.
It's ambiguous.

The obligation is on someone offering a property for sale to provide a BER cert to a potential purchaser.

The vendor here has arguably not offered the property for sale at all.

But if solicitors think it's wise then I wouldn't argue.
 
It's ambiguous.

The obligation is on someone offering a property for sale to provide a BER cert to a potential purchaser.

The vendor here has arguably not offered the property for sale at all.

But if solicitors think it's wise then I wouldn't argue.
Offer has legal meaning in the formation of a contract for sale. If it's not offered, no one can buy it.
 
I recently did an off market sale and the BER was necessary. Any decent solicitor will request it so you might as well have it ready. Depends what part of the country you are in and size of property but 250 sounds right. Took me two weeks to get deeds from Ulster Bank. Despite that, the process still looks like it will take me about 12 weeks and that is straight forward sale. Month of August was a write off in terms of solicitors and the purchaser being on holidays so couldn't get anything closed. But don't under estimate how slow things can be dealing with various parties.
 
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