You need to carefully budget before considering any property. This involves calculating the funds at your disposal either on deposit or cash, estimating the value of your equity in your existing house, if applicable, getting a quote from a Solicitor of the costs involved in purchasing and obtaining approval in principal from a lender -this gives confidence that a lender will lend a certain amount of money.
Contact your Solicitor to open a file and commence the transaction
Once you have decided to proceed with the purchase of your R McDonald & Sons home and have been approved, at least in principle, for the loan, you should pay a booking deposit to our auctioneer, Lawrence McDonald, of €3,000. This deposit is refundable up to the point where contracts are signed. When Lawrence McDonald receives the booking deposit they issue sale details to all parties.
This is prepared by Lawrence McDonald and issued to you, your Solicitor and our Solicitor, Newell, Gillen & Cunningham. It contains the price, conditions of sale, estimated closing date, names and addresses of all parties.
Newell, Gillen & Cunningham on receipt of the Sale details will issue the Contracts. The Contracts are sent in duplicate together with a copy of the Title Deeds to your Solicitor.
Once your lender has formally approved your loan in writing on the basis of the price of the house and information furnished by you, a formal loan pack is issued. Normally a Letter of Offer setting out the main details of the loan is issued to you and the Loan Pack comprising Mortgage Documentation, Acceptance of Letter of Offer and Assignment etc., is issued to your Solicitor. When your Solicitor has checked the Loan Pack and discussed key terms with you, various documents are signed and completed to enable the lender to proceed. This offer will include all the particulars of the mortgage such as rates and repayment term.
When your Solicitor has checked the Contracts you will be required to visit your solicitor to sign the Contracts. Your solicitor returns the Contracts and Building Agreements in duplicate signed by you together with the Contract Deposit/Stage Payment to Newell, Gillen & Cunningham.
Newell, Gillen & Cunningham returns one copy of the Contract and Building Agreement to your solicitor. This creates a binding agreement between all parties, subject to the terms and conditions contained in the Contract.
All lenders require you and your partner to have Life Insurance, or more commonly known as Mortgage Protection. If either you or your partner dies before the mortgage has been repaid, insurance is designed to cover the mortgage amount outstanding, at the very minimum, depending on the type of life cover selected. Home Insurance is also highly advisable and is required by all lending institutions to insure your home and property against e.g. fire, theft. This step often takes longer than many buyers expect so allocate time to making it happen.
On exchange of Contracts, your Solicitor returns the loan acceptance and ancillary documents to your lender.
Your Solicitor raises Requisitions (lengthy Questionnaire) on Title and these are sent to Newell, Gillen & Cunningham together with a draft Purchase Deed. Newell, Gillen & Cunningham then replies in writing, to the Requisitions received from your Solicitor and approves the Deed.
When the house is finished the we will send you and your Solicitor a “Completion Notice”. This is an important document and sets the meter running within which time period you must finalise completion. Immediately on receipt of the Completion Notice you must “snag” the house. This is a formal inspection by you or your agent to establish that the house has been finalised. You draw up a list of any unfinished works. This list, known as a “snag list”, is prepared in duplicate and one copy retained by you and the other handed to Richard McDonald the Site Foreman. Richard will advise you when all the items of the “snag list” have been completed. You or your agent will then re-inspect the house and when you are satisfied it has been completed to your satisfaction you should inform your Solicitor.
Once all queries raised and the Requisitions have been satisfied and all matters are dealt with a closing date is finalised to suit all parties. You should check with your lender that everything is in order to allow the loan cheque to be issued. A common cause of delay is that the Life Insurance or Fire Insurance has not been taken out in time. Your Solicitor will prepare a Statement setting out the balance required to complete the purchase and costs. This is sent to you in advance of the completion in order that you can deliver the balance of funds to your Solicitor (see 15 below). This takes into account any extras or allowances agreed.
The Loan Cheque is received in advance of the completion date.
These are delivered by you, by Bank Draft made payable to your Solicitor in advance on the completion date. Normally the loan cheque and balance of funds are received the day before the completion date.
The completion is the formal completion of the purchase. Your Solicitor checks the Vendor’s Title and when he/she receives good Title with fully signed documents hands over the balance of the purchase price. Richard is contacted by telephone following completion of the transaction and informed to release the keys to you.
When the sale is completed you must sign the Purchase Deed. This document is only handed over to your Solicitor at the closing and is not available for signature by you prior thereto. You must sign immediately following the closing as there are strict time limits for stamp duty.
Following signing by you of the Purchase Deed your Solicitor will proceed to stamp the Purchase Deed and Mortgages and then register same in the Land Registry/Registry of Deeds. Registration can take months, if not years, depending on the County and type of property involved.
At this stage you are registered as owner of the house in either the Land Registry or Registry of Deeds. Legal ownership to the property passes to you on completion of the purchase but registration may take a minimum of 6 months. This delay does not in any way undermine the fact that you are the legal and beneficial owner of the property. Indeed you can sell a property even though registration has not been finalised in the Land Registry or Registry of Deeds.
Your Solicitor, on completion of registration, returns your Title Deeds, to your lender together with a Certificate confirming that you have acquired a good marketable Title. Usually, you will be notified that registration has completed and the Title Deeds have been returned. At this stage your Solicitor closes off your file.