Obtain mortgage approval.
Contact your bank and look around at the various financial institutions and obtain mortgage approval prior to actually looking for the property. If you obtain mortgage approval the mortgage bank will advise you that you have been approved for mortgage up to a certain amount and you then know the value of the property which you can purchase.
Find your ideal property.
When you find your ideal property, you agree the purchase price with the auctioneer and at that stage the auctioneer will ask you for a booking deposit of either 5% of the value of the property or €5,000. That booking deposit is fully refundable to you if you don’t proceed with the purchase of the property. The booking deposit takes the property off the market and is an acknowledgment that you are purchasing the property. At this stage you should agree any contents such as electrical goods, furniture etc that are being sold with the property with the auctioneer.
Talk to your Solicitor.
You need to advise your solicitor of the property you are purchasing and advise him of the auctioneer’s details. The auctioneer will then send your solicitor a letter confirming the actual purchase price of the property and confirming the name of the solicitor who are selling the property.
What does your Solicitor do next?
Your solicitor then writes to the solicitor who is selling the property and obtains the contracts and all the documents which are relevant to your property. This includes the map of the property, the planning documents and the Management Company documents if that’s applicable.
You need to advise your mortgage company of the name of your solicitor and the mortgage company will then send a mortgage pack which has details of your mortgage and the documents which you need to sign to your solicitor.
Obtaining a Surveyor/Engineer/Architect.
Your solicitor will go through all the documents that they have received and then ask you to get a Surveyor/Architect/Engineer to look at the property and also to examine the map for your property to ensure that what is on the map is actually the position on the ground. It is advisable not to get a Surveyor/Architect/Engineer until your solicitor gets contracts and looks at all of those documents.
Arrange for the bank valuer to value the property.
Your mortgage company will insist that their valuer puts a value on the property. The bank has a list of different valuers who will attend at the property and estimate what the value of the property is worth. This is not the same as obtaining a Surveyor/Architect/Engineer who examines the structure and map of the property. The bank valuer simply goes out to the property and looks at the property and from looking at it puts a value on the property. Before your solicitors can get your mortgage, the bank valuer must attend at the property and give the bank a valuation for that property. That valuation is only valid for a four-month period so you shouldn’t do it until your solicitor advises you to do it.
Once your solicitor is satisfied that everything is in order, they will then arrange for you to sign the contracts and at that stage you pay 10% of the value of the property to the solicitor who is selling (less any booking deposit that you have already paid to the Estate Agent). So, for example if you are purchasing a property for a €100,000 then when you sign contracts you need to send back a 10% deposit which amounts to €10,000 less any monies that you have paid to the auctioneer so if you have paid a booking deposit of €5,000 to the auctioneer then when you sign contracts the balance deposit is only €5,000.
Contact your mortgage advisor
Check with your mortgage advisor to ensure that you have signed all of the documents that the bank needs. These include:
- Direct Debit mandate.
- Life policy.
- Home Insurance.
Your mortgage advisor will advise you of everything that you need to do so that your solicitor can get the mortgage monies into their client account.
Closing the sale.
To close the sale your solicitor needs to obtain the mortgage money from the bank. When the solicitor knows that the sale is going to close, they will write to your bank and obtain those mortgage monies but the solicitor can’t do that unless you have complied with everything which the bank has asked you to do. At that stage you also need to pay the Stamp Duty, Land Registry fees and the solicitor’s own fee to your solicitor.
Obtain the keys to your house.
Once your solicitor has obtained the mortgage money, they will then send that money to the solicitor who is selling the property who will then give all of the closing documents to your solicitor and at that stage the sale will close. On the day the sale closes you get the keys from the auctioneer.
We specialise in Buying and Selling Property, Wills and probate and Personal Injury Cases*
Talk to us today
McCormack Solicitors, Carrick on Shannon, County Leitrim
Tel: (071) 9621846/ Fax (071) 9671418
The contents of these pages are provided as an information guide only. While every effort is made in preparing material for publication no responsibility is accepted by or on behalf of McCormack Solicitors for any errors, omissions or misleading statements on these pages or any site to which these pages connect.
*In contentious business a solicitor may not calculate fees or other charges as a percentage or proportion of any award or settlement.