GUIDE TO BUYING A NEW PROPERTY

Step 1: Booking Deposit
The first step in purchasing a new property is to pay the booking deposit. The booking deposit is usually €5000 and is refundable. When the deposit is paid, the builder’s (or developer’s) solicitor forwards copies of the contract and the Title document to the purchaser’s solicitor.

Step 2: Stage Payments
Stage payments are sometimes (though not often outside Dublin) required, and usually payable (with the exception of apartments) thereafter at receipt of Contract, 1st Floor, Roof, Plastering and Balance Stage.

Step 3: Mortgage
A Letter of Loan Offer should be obtained from the lending institution before the contracts are signed. A direct debit mandate must also be completed before the loan is released.

Step 4: 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, “block 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/developer’s solicitor to the lending institution.

Step 5: Solicitor
The purchaser’s solicitor investigates the Title to the property and raises any queries with the builder’s/developer’s solicitor before the contract is signed. The contracts are then signed and returned to the vendor’s solicitor along with the balance of 10% required at signing of contracts.

Step 6: Binding Contract
The contract is binding once the purchaser’s solicitor receives one part of the signed contract and the building agreement from the builder’s/developer’s solicitor.

Step 7: Completion
The builder sends the purchaser’s solicitor a Completion Notice when the house is built. This gives the purchaser a certain time period within which the transaction must be completed, usually 14 days. During this time the purchaser should arrange for an Architect or Surveyor to carry out a snag list on the property. A copy of this should be handed to the foreman so that all snags can be rectified. The completion of the transaction usually takes place at the office of the builder’s solicitor. The title documents are presented to the purchaser’s Solicitor on receipt of the balance of the purchase price. The property is then transferred into the purchaser’s name and the keys are handed over.

Step 8: 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.