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Purchasing

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Steps involved in purchasing a property

There are a number of steps involved in purchasing a property and they are as follows:

  1. The purchaser agrees to purchase the house and pay a booking deposit to the auctioneer
  2. The vendor's solicitor issues contracts for sale to the purchaser's solicitor
  3. The purchaser's solicitor arranges for the purchaser to sign contracts
  4. The purchaser's solicitor returns contracts together with balance of deposit
  5. The vendor signs contracts and returns one part to the purchaser's solicitor
  6. The purchaser's solicitor requests a loan cheque from purchaser's lending institution
  7. The purchaser's solicitor and the vendor's solicitor complete the sale
  8. The purchaser's attends to stamping and registration of the transfer deed
  9. The purchaser's solicitor completes the registration and sends title documents to the purchaser's lending institution

Thinking of buying a house / just bought a house

What should you do if you are thinking of buying a house or if you have just bought a house? You should instruct a solicitor at the earliest possible time.

You should always budget your costs, and be aware of stamp duty rates, both for residential property and non-residential property. There are also implications for persons who acquire sites from a family member or those who build houses by self build.

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.

For further information

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.

Steps in a House Purchase

1. The purchaser agrees to purchase the house

The purchaser agrees the price with the auctioneer, and pays a booking deposit. The purchaser gives his/her solicitor's details to the auctioneer. The auctioneer sends a copy of the sales advice note to the solicitors for both sides, setting out the terms that have been agreed. At this stage, all documents are marked "subject to contract/contract denied". This makes it clear that there are no binding contracts yet.

2. The vendor's solicitor issues contracts for sale to the purchaser's solicitor

The purchaser's solicitor reads the contract and title documents. Pre-contract enquiries may be raised.

3. The purchaser's solicitor arranges for the purchaser to sign contracts

If the title is in order, contracts for sale are drawn up by the purchaser's solicitor. The purchaser must provide a bank draft in favour of the vendor's solicitor for the balance deposit monies due. Often at this stage, the purchaser will sign mortgage papers.

4. The purchaser's solicitor returns contracts

The purchaser's solicitor returns contracts, along with a cheque or bank draft for the balance deposit monies due. At this stage, most purchasers' solicitors also send a standard set of questions about the title of the property (called requisitions on title to the vendor's solicitor.
They also send a draft purchase deed for approval by the vendor's solicitor.

5. The vendor signs the contract

The vendor signs the contract, usually at his/her solicitor's office. The solicitor returns the contract to the purchaser's solicitor. Now it is a binding contract.

6. The purchaser's solicitor requests their client's loan cheque

If the purchaser is borrowing money to buy the house, his/her solicitor will normally request the loan cheque about two weeks before the closing date for the sale. It takes about one week for a cheque to issue provided all formalities are in order, and a further week to clear the solicitor's client account.

7. Closing the sale

Closing the sale is essentially a swapping exercise; money is swapped for documents and keys. While traditionally sales were closed in the offices of the vendor's solicitors, nowadays most closings take place by post. Once the vendor's solicitor has received the balance purchase monies, and the purchaser's solicitor is happy that the documents are in order, the sale is completed.

8. The purchaser's solicitor attends to stamping and registration

For stamp duty purposes, the purchaser's solicitor must lodge the transfer deed for stamping with the Revenue Commissioners within 30 days of closing. Even if there is no stamp duty payable, the deed must be submitted to the Revenue Commissioners for noting.

Once it's returned, the deed is submitted for registration in either the Land Registry or the Registry of Deeds. Once the purchase is completed, the purchaser is the registered owner. Even if there are delays in completing registration, the purchaser can now mortgage or sell the property if he/she so wishes

9. The purchaser's solicitor completes the registration and sends title documents to the purchaser's bank

Once the registration is completed, the purchaser's solicitor sends the title deeds to the bank which provided the mortgage for the house sale. If there is no mortgage against the property, the deeds are available for collection at the solicitor's office. The transaction is now completed.

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.