Guide to Buying and Selling Your House

We have outlined below some of the most important documents and information you will need to provide your solicitor with when selling your property.  We have also outlined the steps that need to be taken by a purchaser to ensure a smooth and efficient transaction.

Selling your House

Step 1:  Instruct your Solicitor

• There are two methods to sell your house – either by auction or by private treaty. The method you use will depend on a range of factors but once you have chosen a method it is important to instruct your solicitor so that they may begin preparing the Contract for Sale and necessary documents.

Step 2:  Locate the Title Deeds

• Next you will need to locate the title deeds to your property. If you have a mortgage the title deeds will likely be with your bank. In order to obtain the title deeds, your solicitor must provide an authorisation signed by you to your bank. Locating the title documents can be a time consuming process and so it is important that this is done as early as possible.
• If there is no mortgage on the property the title deeds should be in your possession or with your solicitor for safe keeping.
• Once your solicitor has the title deeds they can begin to draft the Contract for Sale.

Step 3:  Charges on the Property

• If there is a mortgage on your property your solicitor will need to obtain redemption figures from the bank. The redemption figure will be paid over to your bank on closing. If the mortgage is in negative equity you will need the bank’s permission to sell the property and an agreement must be reached to deal with the negative equity after the sale closes.

Step 4:  BER Certificate and Advisory Report

• With very limited exception, sellers are legally required to provide a BER Certificate and Advisory Report for their property to any prospective purchaser. The BER Certificate and Advisory Report may be with the title deeds or, if not, it may be necessary to have one prepared by a certified BER assessor.
• A list of qualified assessors can be found on www.seai.ie.

Step 5:  Planning Permission

• You will need to provide your solicitor with all planning documents in relation to the property so that they may ensure that they are in order. Depending on the age of the property, you may have to provide the prospective purchaser with an Architect’s Certificate of Compliance / Exemption with planning permission and building regulations in relation to the construction of your property and any subsequent development on the property unless same is precluded by the Contract for Sale. Some or all of this documentation may already be with your title deeds.
• Any planning issues identified should be resolved as soon as possible as a prospective purchaser may be reluctant to proceed to purchase a property with a planning defect or their funder may not approve drawdown.

Step 6:  Declaration of Identity

• In certain cases, for example a one off rural property, the purchaser will look for a Declaration of Identity to be provided. This is a statutory declaration prepared by an Architect or Engineer which confirms that the boundaries on the ground and services required for the property are comprised within the title to the property.

Step 7:  Family Law Acts

• Your solicitor must prepare a Family Law Declaration to comply with the terms of the Family Law Acts. In this regard, your solicitor may need copies of civil marriage certificates, civil partnership registrations, death certificate of spouses, divorce or separation papers.

Step 8:  Local Property Tax (LPT) and Household Charge

• You must discharge the Household Charge for 2012 and Local Property Tax from 2013 to date before the sale of your house completes.  LPT for the current year is then apportioned between the seller and the purchaser on closing.
• The seller must provide the purchaser with a property history printout showing discharge of all LPT from 2013 to date together with Household Charge for 2012.  A property history printout can be obtained from the Revenue website.

Step 9:  NPPR Certificate of Discharge or Exemption

• The Local Government (Charges) Act 2009 as amended by the Local Government (Household Charge) Act 2011 introduced a €200 annual charge on residential property that was not the owners’ main or only residence for the years 2009-2013.
• The NPPR charge and late payment fee in relation to 2009, 2010 and 2011 have now expired and become statute barred. The NPPR charge and late payment fee relating to 2012 and the associated charge on a property unit is due to expire on the 1^st April 2024.  The NPPR charges will expire completely on the 1^st April 2025.
• Up until the 1^st April 2024, you will need to provide any prospective purchaser with either a Certificate of Discharge or Exemption from NPPR for the years 2012 & 2013. From the 1^st April 2024 to the 1^st April 2025, you will need to provide any prospective purchaser with either a Certificate of Discharge or Exemption from NPPR for the year 2013.  A Certificate of Discharge or Exemption can be obtained by applying to your Local Authority.

Step 10:  Managed Developments

• In the event that your property is within a managed development (e.g. an apartment complex or managed estate) depending on the circumstances, your solicitor may need to correspond with the management company or managing agent to obtain replies to Requisitions on title numbered 36 or 37 which are a standard questionnaire for management companies.
• Management companies usually charge a fee for providing replies to Requisition 36 and/or 37 and can take a couple of days to furnish same. As such the required replies should be requested as soon as possible.

Step 11:  Land Registry Compliant Map

• On the sale of unregistered property (i.e. property registered in the Registry of Deeds where title to the property consists of a series of deeds), the seller is obliged to provide any prospective purchaser with a Land Registry Compliant Map to enable the purchaser to register their title in the Land Registry. An Architect, Engineer or Surveyor will prepare this map.

Buying a House

Step 1:  Instruct your Solicitor

• Having chosen the house you wish to purchase, you must instruct your solicitor to act for you in the purchase. Your solicitor will then review the draft Contract for Sale and title documents furnished by the seller’s solicitor, investigate title, carry out searches and advise you in relation to same i.e. whether the property has good marketable title.

Step 2:  Survey

• Prior to signing the Contract to purchase a second-hand property, you should engage a suitably qualified Surveyor, Engineer or Architect to carry out a structural survey of the property, its boundaries and services to identify any potential issues, especially those which may impact your willingness to purchase the property.
• If there are structural faults which only come to light after you have contracted to purchase the property then you will have no recourse as against the vendor. It is therefore essential that the survey is completed prior to execution of the Contract to purchase a second-hand property.

Step 3:  Funding

• Unless you are a cash buyer, you will need to obtain mortgage approval. Once you have obtained mortgage approval the bank will issue you with a formal loan offer pack. This pack must be completed by you and your solicitor.
• Once you have unconditional loan approval and your solicitor is satisfied that you are receiving good marketable title to the property, you may then sign the Contract for Sale.

Step 4:  Costs

There are a number of costs associated with purchasing a house, including the following:

1. Deposit and Purchase Price – when returning the signed Contract for Sale to the seller you must pay a contract deposit. This is usually 10% of the purchase price less the booking deposit already paid by you to the estate agent. The remainder of the purchase price is then discharged on closing.
2. Stamp Duty – stamp duty is payable at a rate of 1% on the first €1 million of the purchase price and 2% on the excess over €1 million.
3. Local Property Tax – the seller will pay LPT for the entire year. The LPT is then apportioned between the seller and the purchaser as at the closing date, with the purchaser reimbursing the seller with the LPT paid from the closing date up to the 31^st of December of the year of sale.
4. Search Fees – the cost of search fees which are required on closing will depend on title to the property and the extent of the searches required. A Pre-Contract planning search is also required. Search fees are payable to third party law searchers.
5. Solicitors’ Fees – your solicitor will issue you with a Notice of Costs at the beginning of the transaction outlining their fees.
6. Surveyor’s Fees – this will be a matter for you to agree directly with your surveyor.
7. Registration Fees – the costs of registering your title to the property will vary depending on whether it is with the Registry of Deeds and / or the Land Registry, and whether it involves a mortgage or not.
8. Other Outlays – you may also incur other outlays in the course of the transaction and your solicitor will advise you of same.

Next Steps

If you have any queries or concerns, or would like to discuss the above in further detail, please feel free to contact Trea McGuinness in the Private Client Department of BHSM LLP on 01 440 8300 / tmcguinness@bhsm.ie.

This article is for general information purposes.  Legal advice must be obtained for individual circumstances.  Whilst every effort has been made to ensure the accuracy of this article, no liability is accepted by the author for any inaccuracies.