Buying a Home
Buying a home can be one of the most important financial decisions for any consumer. The legal and consumer issues involved may vary considerably, depending on the type of property that you intend to buy, from a new home to an older property, or from an apartment in a multi-unit development to a council house.
Private treaty sales and auctions
The two most popular ways to buy and sell homes in Ireland are private treaty sales and public auctions.
Private treaty sales In a public auction, the seller sets a reserve price (which is rarely disclosed). Once this is reached, it is usually sold to the highest bidder. If you are the successful bidder, you must immediately pay a deposit (generally 10% of the asking price) and sign the contract for sale.
Whether you buy a home by private treaty or auction, your rights and obligations are contained within the contract for sale. If you withdraw from the sale after the contract is signed, you may lose the deposit you have put down.
The contract will set out a completion date, when the balance of the agreed purchase price is due.
In the period between signing the contract and the completion date, the buyer's solicitor will raise various queries about the property with the vendor's solicitor, such as whether planning permission is in place for any changes that have been made to the property.
Solicitors
The legal transfer of property is a complex and specialised process. In general, each party appoints a solicitor to represent them and provide legal advice before entering into a contract to buy the home.
There is no fixed rate for solicitors’ fees, so shop around before picking a particular firm.
If buying by auction, remember that you will also need a solicitor before the auction to check the contract and the home’s title documents.
Conveyancing
"Conveyancing" is the legal work done by the buyer's solicitor and the seller's solicitor in the property sale. The legal documents set out the terms and conditions by which ownership of the unit is transferred from the seller (usually referred to as "the vendor") to the buyer ("the purchaser").
They also spell out the terms and conditions of your ownership of your unit, your part ownership of the common areas, and the conditions of your membership of the management company.
It is essential that you understand what these terms and conditions mean and what your rights and responsibilities are.
Standard contract for sale
There are no hard and fast rules governing what terms should be in a contract to buy a property.
The most widely used contract is a standard conditions of sale contract published by the Law Society. This is designed to ensure a fair balance of rights and obligations between buyer and seller.
The standard contract specifies items such as the agreed price and completion date. While it uses a set format and standard clauses, it may also contain terms and conditions specific to your property. These are known as “special conditions”.
Ask your solicitor to explain the meaning of any relevant special conditions.
Requisitions on Title
Your solicitor should raise what is known as "Requisitions on Title". This is a checklist or standard set of questions drafted by the Law Society about the sale of a property. Some of the questions may be specific to your property.
The seller’s solicitor should answer all these questions before final closing arrangements are made.
Download a checklist of Requisitions on Title.
Snagging
If you are buying a new home, the process of "snagging" involves examining and identifying any potential defects or outstanding work in a house or apartment under construction.
Generally it is the last phase of the construction process, and a snag list is compiled prior to final closing of sale.
Read a sample snag list at HuntforProperty.ie