The following sets out in brief the various stages of a purchase/sale file.
The following sets out in brief the various stages of a purchase/sale file. Some of these steps may vary depending on the individual transaction and this is deemed to be a general guide only.
1. Purchaser locates a property and agrees the terms of the purchase with the Auctioneer selling the house. It is at this point that a purchaser will make contact with and instruct a solicitor to act in the purchase. The Auctioneer will ask for a booking deposit to secure the house and this is now generally paid by Bank transfer .This booking deposit is fully refundable. The Auctioneer notifies the seller’s Solicitors to draft contracts based on the title of the property.
2. If the property is subject to a mortgage the title deeds will be held by the relevant Bank .It may take some time to take up the title documents from the seller’s bank and so to avoid delays, it is best if the deeds are ordered from the bank as early in the process as possible preferably before the auctioneer markets the property for sale. Once the deeds are obtained the seller’s Solicitor will prepare and issue Contracts for Sale to purchaser’s Solicitors. The proposed closing date when keys will be exchanged will be included in the Contract.
3. The Purchaser’s Solicitors examine the title and all associated matters e.g. planning, boundaries, taxation etc and satisfy themselves that the title is in order. At the same time, the purchaser’s Solicitors ensure that finance is in place to purchase the property, either from the purchaser’s own resources or with the benefit of a mortgage.
4. It is strongly recommended that a full structural survey is carried out by an appropriately qualified and insured Engineer at this juncture before signed contracts are returned. They should also be asked to examine the planning and boundary situations. It is also quite common now that a drain survey be carried out to locate the route and the quality of the drains servicing the property.
5. Once the purchaser obtains loan approval, once the structural report is to hand and once all title issues have been addressed to the satisfaction of the Purchasers Solicitors contracts are signed by the purchasers and returned to the Vendors Solicitors. The balance of the deposit usually representing 10% of the purchase price with deduction allowed for the booking deposit paid to Auctioneer is also paid at this time. Once returned the purchaser is legally bound to buy the property at the stated price.
6. The Vendors will then be asked to countersign and return contracts through their Solicitors which in turn legally commit them to the sale.
7. In conjunction with the contravts, a very detailed list of Requisitions on Title is exchanged between Solicitors. If the Purchasers Solicitors are satisfied that all detailed queries have been addressed and all appropriate consents are in place the Vendors Solicitors will prepare the closing documentation to be signed by the Vendors. On the closing date as set out in the initial contract, keys and the title documents are handed over in exchange for the balance of the purchase monies payable obtained either from the client or their lending institution.
8. The purchaser now takes possession of the property and if applicable commences mortgage repayments. Before the formal closing the seller must have vacated the property which means that both they and their belongings must be out of the house.
9. The purchaser’s Solicitors must now proceed to pay the appropriate stamp duty to the Revenue Commissioners and to register the purchaser’s title and mortgage if applicable. Once registration is completed satisfactorily and all queries answered, the title deeds showing the purchaser’s ownership of the property and also showing the mortgage in place if relevant are returned to the mortgaging bank where they are held for the term of the mortgage. If there is no mortgage the title deeds are usually held in the purchaser’s Solicitors’ office to the order of the purchaser.