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Property

FAQ

Welcome to our FAQ page where you will find some frequently asked questions about property. We hope you find the questions and answers provided of assistance to you. If you require further information or you have a particular query, please do not hesitate to contact us.

Why do I need a solicitor when purchasing/selling a property?

Your solicitor is plays an important part in the transaction of buying and selling property.  You need a solicitor to deal with the legal aspects of buying and selling property.

There are certain procedures that are followed when you buy or sell property. Your solicitor will ensure that this is followed and will at all times  ensure your interests are protected in particular when dealing with any complex issues that may arise throughout the transaction.

Once you have decided to buy or sell property,   you should immediately talk to your solicitor about all the arrangements. You will be advised on things like: paying the deposit, arranging the mortgage and getting a surveyor. Throughout the process, your solicitor will keep you informed of all the developments and the relevant deadlines. Your solicitor is also responsible for putting together all the necessary paperwork and documentation on your behalf.

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What are the steps involved in buying a proPERTy?

Buying a property: when you buy a property, you should contact your solicitor who will;

• Review the contracts and check the title to the property and ensure that there are no problems with the title.

• They will raise enquires on matters contained within the documentation provided to them by the seller’s solicitors where appropriate

• They will request searches

If you buy a property and will be requiring a mortgage, you solicitor will act for you  and will arrange for a draw down of your mortgage funds.  The undertakings provided by solicitors when buying or selling a house are a fundamental part of the conveyancing procedure. An unqualified person cannot provide an undertaking.

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WHAT ARE THE STEPS INVOLVED IN SELLING A PROPERTY?

Selling your property:  when you sell a property, you should contact your solicitor who will::

• Check the title to your property

• Draw up the contract for sale

• Deal with any issues raised by the buyer’s solicitors

• Complete the sale

If you have a mortgage on the property will be removed at completion, your solicitor will be required to provide undertakings to the buyers solicitors to redeem the mortgage from the sale proceeds  .  The undertakings provided by solicitors when buying or selling a house are a fundamental part of the conveyancing procedure. An unqualified person cannot provide an undertaking.

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What are title documents?

Title documents set out who the registered owner of the land/property is, it also will give details of any burdens registered on the property ie right of ways ,life interests or mortgages. Your title documents to a property will include a deed showing you as registered owner, planning documents and any other documents relating to your interest in the property.

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What is a contract for sale?

A contract for sale is a legal document that is drafted by the sellors solicitors, setting out the contract between the seller and the buyer. It sets out the details of both parties, the purchase prise, the closing date, the title to the property and special conditions realign to the contract to purchase or sell property.

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WHAT IS INCLUDED IN THE CONTRACT FOR SALE?

A contract for sale contains the following details:

  1. The details of the parties to the contract.
  2. The purchase price and the deposit.
  3. The closing date.
  4. The contract will also list the title documents and planning documents
  5. The contract then continues with a number of standard conditions, which we will go through in detail when you attend the office to discuss matters.

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What is stamp duty?

Stamp duty is charged on the document that is used in the transfer of property. It is paid by the purchaser or person who receives the property. For information on how stamp duty is calculated clink here stamp duty.

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What is Home bond Insurance?

If you are buying a second hand house then it’s important that you find out if it is still covered by Home Bond Insurance. Most houses less than 10 years are covered by Home bond Insurance, which means you are covered for any major structural defects for the first 10 years.

What is the cost involved in purchasing a property?

(a) Engineers/Surveyors Fee

It is essential that you instruct an Engineer/Surveyor to complete a report on the condition of the property, a structural survey of the property. Your engineer will spot things that will not be obvious to me or me. Your engineer should also check the map that you receive with the property to ensure that the property and area included in the transaction corresponds with what is on the map. This survey is very different to the survey carried out by your bank and is significantly more detailed.

(b)Stamp Duty
Stamp duty is a tax charged on the documents that transfer the ownership of property from one person to another. The level of stamp duty that you pay depends on the value of the property that you are purchasing and your status eg first time buyer, owner occupier, investor. For further detail see {stamp Duty}

(c) Solicitors Fees.

(d) Search Fees
Search fees will depend on the type of property and the extent of the enquiries that need to be made in relation to the title of the property.

(e) Registration Fee
This is the cost involved in registering your ownership of the property and the mortgage where you have obtained a mortgage.

(f) Insurance
It is essential that insurance over the property when the purchase is completed. Once the sale is completed it is the sole responsible of the purchaser to have the property insured.  Your home is probably the most valuable asset that you have and it goes without saying that this asset should be properly protected. Household insurance is made up of two parts, namely building insurance and contents

insurance.

(g) Life Cover:

A lending institution will also insist that mortgage protection insurance be taken out. This is life cover in the event that either you (or your partner) die before the mortgage has been repaid, insurance is designed to cover the mortgage amount outstanding, at the very minimum, depending on the type of life cover selected.

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What is a BER Certificate?

Since the 1st of January 2009, a building energy rating BER certificate has become compulsory for all homes and commercial properties being sold or rented regardless of the age of the building.  A building energy rating (BER) Certificate is a rating of the overall energy efficiency of a building. The rating is on scale of A to G, with A1 being the most energy efficient and G being the least energy efficient. It contains the following information on each certificate: the name and address of the building, the BER number, the date of issue of the BER certificate, the date until when the BER is valid and the BER assessor number and the BER assessor company number. A BER enables a purchaser to understand the overall energy efficiency of a building that they are purchasing.

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What is Adverse Possession?

Adverse possession is where an individual takes possession of a property for 12 years with the intention of excluding the owner and all others from the property then he/she may obtain title to the property. This is also known as squatter’s rights.

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What is Local Property Tax (LPT)?

Local Property Tax (LPT)is an annual self-assessed tax charged on the current market value of all residential properties in the State. It will come into effect from 1 July 2013. A half-year charge will apply in 2013 and a full year charge will apply in 2014. If you own a residential property in the State,including a rental property,  you are liable to pay the Local Property Tax (LPT).  For further information on Local Property Tax follow the quick link to the right of the screen.

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What are Requisitions on Title?

While the name says requisitions on title, it is a series of standard queries where extend beyond solely title issues such as telephone lines, capital gains tax.  There are prepared by the purchasers solicitors and sent to the vendors solicitor. There are 44 requisitions in total. The purpose of the requisitions is to give the purchaser further information relation to the property in accordance with the contract for sale.

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What is the Land registry?

The Land Registry is a registry that provides a secure system of land registration. When ownership of a property is registered in the Land Registry,  the deeds are filed in the registry and all relevant particulars in relation to the property about its ownership are entered on to a folio. The original documents are retained by the registry. The Land Registry also maintains Land Registry maps.

Title shown on the folio is guaranteed by the State which is bound to indemnify any person who suffers loss through a mistake made by the Land Registry. A purchaser therefore can accept that the information set out in an up to date folio as evidence of title without having to review previous title deeds.

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What is the Registry of Deeds?

The Registry of Deeds is a  system of voluntary registration for deeds and conveyances affecting property.  There is no statutory requirement to register a document but failure to do so may result in a loss of priority. The primary function of the Registry of Deeds is to provide a system of recording the existence of deeds and conveyances affecting unregistered property.   It should be noted that the Registry of Deeds does not retain the original deed , it records the existence of a deed. It  does not guarantee the effectiveness of a Deed. It is not guaranteed by the State.

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What is ground rent?

There are many ways you can hold an interest in property. The two main types of ownership of property are leasehold and freehold.

Leasehold interest in a property means that you own just the building subject to a lease and you do not own the land on which the building is built. If you own a leasehold property, you must pay a ground rent to your landlord because he or she owns the ground on which the building is built. The amount of ground rent paid varies and is set out in the original lease.

Freehold interest in a property means that you own the land and the buildings (if any) on the land. There is no ground rent.

Buying out the ground rent. You can buy out ground rent both privately with the Landlord or/and through the Ground Rents Purchase Scheme.

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HAVE A QUESTION OR NEED MORE INFORMATION?

tel: 061 599 033 email: info@bmsolicitors.ie visit us: 64 O'Connell Street, Limerick Opening Hours: Monday - Friday 9.00am to 5.30pm. Saturdays by Appointment

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