Buying a Property
Establish your budget
1 How much can or should you borrow?
2 Are there other hidden costs, such as valuer’s fees or architects survey fees?
3 Remember, 10% of the purchase price is payable on signing contracts.
4 Request a written estimate from your solicitor
5 Allow for a service charge for an apartment or mixed development.
6 If you are selling a property, put it on the market as soon as possible as you must secure a buyer before contracts can be signed.
Find the property
1 New builds require a booking deposit, usually about 2%, payable to an auctioneer.
2 Buying a second hand house involves putting forward a bid to an auctioneer.
3 If the property is being sold at auction, your solicitor should check out the title beforehand and you must have 10% of the price available at the auction (as deposit) if you’re successful.
In all cases, give the auctioneer your solicitor’s details.
You normally have between 14 – 21 days to return signed contracts to the seller’s solicitor. Before signing contracts, you should:
1 Formalise your mortgage by receiving a suitable loan offer with conditions you can meet.
2 Arrange the 10% contract deposit.
3 If it’s a second hand property, arrange for an architect or engineer to do a structural survey and check that the boundary of the property matches the map or description with the title.
Meet with your solicitor to sign contracts
1 Now you’re required to furnish the balance of 10% contract deposit.
3 The contract is not binding until signed by the seller and returned to your solicitor.
Your solicitor will complete a full investigation into the title to the property, including planning and services.
For a new property, the builder’s solicitors will issue a completion notice. This normally allows 14 days to complete the purchase so it’s important to be aware of the progress of construction during this time.
1 You should provide the builder with a snag list i.e a list of unfinished works within 7 days of receiving the completion notice.
2 Your solicitor will requisition the loan cheque from your bank. Check that all items are with your bank so that the cheque can issue without delay, making sure your insurance is in place and that the final valuation has been carried out by the Bank’s valuer.
3 Your solicitor will issue you with a statement of monies due on closing.
4 The purchase can close once your loan cheque issues and you’ve paid the balance. Closing will take place at the seller’s solicitor’s office or by post and finally you get your keys or in most cases a letter authorising you to collect your keys.
Attend with your solicitor to sign your deed