Property FAQs
Below is a list of Frequently Asked Questions that the Conveyancing and Property Team at Malcomson Law are often asked during the process of purchasing or selling a property
If you are confused by any of the legal, financial or conveyancing terms in this section, consult our Jargon Buster, which explains the terms associated with buying and selling property.
FAQ
Q. Is the booking deposit which I pay to an auctioneer refundable?
Yes, booking deposits are fully refundable until such time as a binding contract for sale comes into existence. If you change your mind about buying a property before signing contracts for sale you are automatically entitled to a refund of your booking deposit.
Q. When does a contract for sale become binding?
A contract for sale becomes binding when it has been executed by both parties, exchanged and some form of deposit paid.
Q. When buying a second hand house, do I still need to carry out a survey even though my Bank's valuer has already looked at the property?
Yes, we highly recommend that you carry out a survey by a structural engineer or surveyor. When you buy a second-hand house the principle of "Buyer Beware" applies. This means that you are buying the property warts and all. A valuer for the Bank will carry out a very superficial inspection of the property merely to ascertain the market value of the property. They are not in any way certifying the property to be structurally sound. It is therefore very important to arrange for a comprehensive survey of the property so that you are fully aware of the state of repair of the property.
Q. When do I have to pay stamp duty?
Stamp duty is payable within 30 days of completing your purchase. If the stamp duty payable is not paid within the 30 day period, substantial penalties may be imposed by the Revenue Commissioners.
Q. How long will the conveyancing transaction take?
Unfortunately this is one question that cannot be answered with any degree of accuracy, as each transaction is unique. This depends upon how organised both the Vendors and Purchasers are and how quickly each want to complete. The most common reason for a transaction not completing on time is a delay in the issue of a loan cheque.
Q. How long does it take for a loan cheque to issue?
Most lending institutions issue loan cheques or funds by Electronic Fund Transfer within five working days of receiving a cheque request provided all formalities such as insurance have been complied with. If all formalities have not been complied with, then there will be a delay in the issue of your loan cheque.
It is always recommended that when asking your solicitor to request your loan cheque that you contact your mortgage adviser/broker to ensure that all the conditions of your loan approval have been complied with.
Q. What if I decide to change my mind and not buy a property after I have signed contracts?
Never a good idea! You are essentially throwing yourself on the mercy of the Vendor. If the Vendor is not prepared to let you walk away from the transaction, at the very least you run the risk of losing your deposit, but also may be forced by the courts to go ahead and buy the property by way of an order for specific performance.
Furthermore, if the vendor on the re-sale of a property gets a lower price than contract price to you, you may be liable to pay the difference between both contracts. The deposit which was forfeited acts as a credit.
If you have any reservations about purchasing a property, don't sign the contract.
Q. What is the difference between a joint tenancy and a tenancy in common?
Ownership of a property is often described as either being a joint tenancy or a tenancy in common.
A joint tenancy is where a property is owned collectively, and is not split up into separate shares. If one of the joint tenants dies, the other surviving Joint Tenant(s) take the ownership of the property automatically by way of survivorship. This type of ownership is most commonly held between husband and wife.
Tenancy in common on the other hand involves a division of the ownership of the property into separate and distinct shares. If one of the tenants in common dies, his share remains intact and passes under the terms of his will and not by way of survivorship. This type of ownership is most commonly found in a business context.
Q. Who should I get to do a snag list inspection?
There is no hard and fast rule about this. An architect/Engineer is the obvious choice. However, another builder is often a good alternative as they know where to look for any corners that have been cut. A snag list does not follow any set format. All that is required is that the information be set out clearly so that the Builders can follow what needs to be done.
Seeking Property Law Advice
For further information, please contact Malcomson Law by calling 01 8744422 or by filling out an Online Enquiry Form. A solicitor who specialises in conveyancing will contact you to assist you with all of your conveyancing needs.