Names and details amended to protect client confidentiality.

We have just successfully guided AW and BF through the purchase of their first home. A young married couple who have never owned property before they were renting an expensive apartment when they took the decision to purchase a home for themselves and their future family.

Loan approval in principle

The couple first contacted a mortgage broker who assisted them in figuring out how much a bank was likely to loan them for the purchase of a house. Armed with this notional figure they then began the arduous process of viewing houses and making bids. Eventually, after many failed attempts, they went sale agreed on their dream home.

Booking deposit paid

They contacted our office to give us the details of the proposed purchase – the address of the property, the sale price, the amount of booking deposit paid to the auctioneer, the age of the property, the identity of auctioneers, the likely closing date, the fact that there was an extension on the property and whether this extension had planning permission.

Estimated fees and Outlay

We discussed the process of property purchase from booking deposit stage to completion and registration with our clients. We also gave a detailed estimate of fees and outlay to our clients which included the estimated cost of the Land Registry (Property Registration) fees, searches fees and the stamp duty payable on the property. (NB Stamp Duty is calculated at 1{ff7198f4411e99f999023b30b60f2a7e3cbd51460a64f844af75d40da4d6e647} of the purchase price and must be paid within 30 days of the closing date to avoid penalties and interest accruing.)

Surveyor’s Report

We also advised our clients that when purchasing a second hand property that it is essential that one obtain an independent structural survey on a second hand property. It is a standard general condition in a Contract for Sale that the principle “buyer beware” applies. It is, therefore, imperative that the purchaser seek the services of a surveyor who will carry out a detailed survey of the property. In the event that defects arise following the purchase of the property, the purchaser will not have a right of recourse against the vendor given that you are being provided with an opportunity to carry out an inspection of the Property.

Contracts

Once the booking deposit is paid the vendor’s solicitors send us the contracts for sale and related documents. We very carefully reviewed the contracts and the copy title and all the relevant planning documents. We also carried out a planning search. It came to light that there was no planning permission for the extension to the side of the property. We wrote to the vendor’s solicitors to raise this and several other issues. We requested that an architect’s opinion be provided by them in relation to the extension. An architect’s opinion was provided. The architect gave his professional opinion that, having considered the dimensions of the extension it was within the exemption size permitted under the planning acts (much to our clients’ relief!)

Solicitor’s loan pack

Once our clients had gone sale agreed we advised them to straight away contact their mortgage broker to provide all the relevant details of the property which they were purchasing. They duly did so. The bank requested that a valuation be carried out and once the valuation report came back to them they were satisfied that they could provide the loan to our clients. A solicitor’s loan pack duly issued to our office for signing by our clients. They then had to make sure all other matters were taken care of including the life policy for each client and of course the building’s insurance.

Completion

Completion is always the tricky part of any transaction. It is always difficult to ensure that the loan cheque issues from the bank in time, the vendors are ready to move out and the purchasers are ready to move in (with the help of their furniture movers van). Fortunately the bank forwarded the loan cheque to us in time for a completion on a Friday and we completed the transaction on behalf of our clients in time for them to move in on a sunny Friday afternoon allowing them the whole weekend to get acquainted with their new home.

Registration

The job is not finished for our office once our happy clients get their keys. We have completed the purchase with the vendors’ solicitor and we have since sent the documents to the Property Registration Authority for registering the property in the names of our clients. Once the registration process is complete with the Property Registration Authority we will send all the title and planning documents to the bank as they hold the title deeds as security for the mortgage until such time as the mortgage is paid off – or they sell it to upgrade.

We wish them the very best!