Buying a new property

This document has the details of the agreement, the price, buyer and seller’s details, the property address, the completion date, special conditions about this transaction and general conditions that apply to all property transactions. The general conditions are a mix of rights and obligations of both the developer and buyer

There is not a completion date in the Contract. Watch Shona’s video below about how completion is dealt with in the Contract.

The following documents are reviewed and discussed with the purchaser: Contract, map, Folio, Planning documents Homebond, plans and specifications and management company documents.

The balance of the 10% deposit is given to the buyer’s solicitor. It will be transferred to the seller’s solicitor and two signed Contracts will be posted also. The seller will sign both Contracts, keep one and return one signed Contract to the buyer’s solicitor. At this point there is a binding Contract in place.

The mortgage funds will be drawn down from the bank a few working days before the completion date. In order for mortgage funds to be released, the life policy/ Mortgage property policy, update to date valuation, direct debit mandate and home insurance must be submitted to the bank.

The buyer’s solicitor transfer 90% of the purchase price to the seller’s solicitor by EFT. The buyer’s solicitor order judgment and property searches. The seller’s solicitor sends the original title documents and closing documents to the buyer’s solicitor. These are reviewed by the buyer’s solicitor.

When the seller’s solicitor receives the funds and the documents and searches are checked by the buyer’s solicitor, both parties confirm they are happy complete the transaction. The seller’s solicitor will call the estate agent and confirm the sale has closed. The estate agent will then be authorised to release the keys to the buyers. The buyer’s solicitor will content them to tell them the keys are available to be collected from the office of the estate agent.

The stamp duty will be paid by the solicitor. The current rate for residential property is 1% of the Vat exclusive purchase price. Watch the video below about calculating the stamp duty. Purchasers have to give their PPS numbers to their solicitor, in order for the stamp duty return to be done through ROS.

The change of ownership and mortgage documents are then sent to the Property Registration Authority. This usually takes a few months to complete. Then a new folio (deed) will be available showing the new registered owners of the property. If the buyers got a mortgage, then the bank’s charge will be registered on the deed also. All original title documents are then given to the bank as security for the mortgage.

The change of ownership and mortgage documents are then sent to the Property Registration Authority. This usually takes a few months to complete. This is because the property is being registered and mapped for the first time. Then a new folio (deed) will be available showing the new registered owners of the property. If the buyers got a mortgage, then the bank’s charge will be registered on the deed also. All original title documents are then given to the bank as security for the mortgage.

When the stamp duty return is done through Revenue, this notifies Revenue that the buyers have bought a new property. A Local Property Tax ID number will then be generated by Revenue. There is no Local Property Tax liability due until the 1st November in the calendar year that the ownership was registered in.