GUIDE TO BUYING A SECOND HAND PROPERTY

Step 1: Booking Deposit  
The purchaser pays a booking deposit to the estate agent to secure the property. This is usually 1% - 2% of the purchase price and is refundable. The estate agent then forwards sales details to both the purchaser and vendor and their respective solicitors. This document outlines the agreed purchase price, any conditions of sale, the estimated closing date and details of all parties. When the deposit is paid, the vendor’s solicitor forwards copies of the contract and the title document to the purchaser’s solicitor.  

Step 2: Mortgage
A Letter of Loan Offer should be obtained from the lending institute before the contracts are signed. A direct debit mandate must also be completed before the loan is released.  

Step 3: Life/Building Insurance
It is necessary for the purchaser to obtain both life and building insurance before the mortgage can be drawn down. When purchasing an apartment the building insurance premium is included in the annual service charge. In this case, the purchaser’s solicitor will arrange for a Letter of Indemnity to be sent from the builder’s solicitor to the lending institution.  

Step 4: Survey
The purchaser should have a survey carried out on the property before signing any contracts. This is particularly important for second hand properties.  

Step 5: Solicitor
The purchaser’s solicitor examines the contract and title document to make sure that everything is in order before the purchaser signs the contract. The signed contract is then returned to the vendor’s solicitor together with the deposit, 10% less the booking deposit. The vendor’s solicitor returns the contract, signed by the vendor, to the purchaser’s solicitor creating a binding contract.  

Step 6: Completion
Before the completion date is finalised, the purchaser’s solicitor raises a number of Requisitions on the Title with the vendor’s solicitor. Once these are satisfied the closing date is confirmed. The completion usually takes place at the office of the vendor’s solicitor, at which time the purchaser pays the remainder of the purchase price. The property is then transferred into the purchaser’s name and arrangements are made to hand over the keys.  

Step 7: Post Completion
The purchaser’s solicitor stamps and registers the title documentation. If the purchaser has obtained a mortgage, the title documentation is then sent to the lending institution for safekeeping.