What was the actual procedure in taking out a "Shared Ownership" loan?

[Brendan Burgess]

I am trying to get my head around the process to understand what documentation the buyers were given at the time.

1) You apply for a "Shared Ownership" loan
2) They send you So4 which tells you that they will recommend you for approval. (I have a copy of this)

• You sign this and return it
• It gives some information and some examples of how the SO works.
• It says that you should get independent legal, financial and architectural advice.

3) You get "provisional approval"

• Is this for a specific property?
• Does it give you more information?
• Could anyone send me a copy of this?

4) You agree with the seller to buy their house.
5) The Council sends out an inspector to look at the house
6) The seller's solicitor sends the usual title deeds to the Council's solicitor who buys the house
7) You pay your deposit of €1,300

What forms the contract between the "purchaser/tenant" and the Council?
When is it signed?
Could anyone send me a copy of it?

 

[Brendan Burgess]

From [broken link removed]- but undated

WHAT HAPPENS WHEN AN APPROVED APPLICANT SELECTS A HOUSE? The applicant must go back to the authority that issued the provisional approval and pay them a deposit of at least €1270, which will go towards paying for the applicant’s share of the house. A deposit should not be paid directly to the builder or person selling the dwelling as it is the local authority that will initially acquire and pay for the house. The authority will inspect the house or, if it is a new house, examine the plans and specifications.

WILL THERE BE TRANSACTION COSTS? No stamp duty will be payable. It is a matter for the applicant to choose whether to have an independent survey of the house carried out. Applicants must engage a Solicitor to deal with the execution of the Lease and Mortgage Documentation and the applicant’s own Solicitor’s fees are payable by the applicant. However, Laois County Council’s own Solicitors deal with the purchase of the property and legal fees incurred in connection with the purchase of the property are included in the purchase price of the house. Fees in relation to registration of title of Lease and Mortgage are borne by the Council.

 

[Skier]

Brendan,

3) You get "provisional approval"

as far as I remember, this approval is valid for a few months (I think it is 6 months) and you need to find the house within this period (if you do not have one yet). In my case I had my first house ready for inspection by them at the time of “provisional approval”, but their engineer did not like the house due to fire regulations and it was rejected, within the next 2 months I found the second house and this one was approved. I had also my own structural engineer inspecting the houses but it was not required by council, if I remember well as this was a new house. They send their own anyway.

Regarding the contract between the purchaser and council; council have their own standard agreement which they sent to independent solicitor for review (cost around 100 euro because he acts as an advisor only), this is a standard agreement so I do not think there is possibility to negotiate anything. The agreement after review and your signature in the solicitor office was sent back to the council, I don't have a copy at home, but i think our solicitor has one. I will try to get a copy from council (or solicitor) and forward to you, but it may take a while.

Skier

 

[Brendan Burgess]

I will try to get a copy from council (or solicitor) and forward to you, but it may take a while.

Skier

Hi Skier

That makes a lot of sense. A standard contract which is non-negotiable. I wonder what the purpose of legal advice would be in that case? But €100 is fine. I wonder if the solicitors understood the contracts.

I look forward to seeing a copy of it.

Brendan

 

[Skier]

Brendan,

...I wonder what the purpose of legal advice would be in that case? But €100 is fine. I wonder if the solicitors understood the contracts.


This was just to sign the agreement in front of the independent person (solicitor), also he suppose to make sure that the purchaser understand the agreement and explain in case there are any questions. I think that council wants to have that person in case of any future legal issues from the purchaser’s side (... so they could say that the independent person/advisor was between both sides).

Skier