One of the biggest and most life-changing purchases you can make is an Irish home as a non resident. Several crucial inspections must be made about the home’s legal, tax, and planning status, which can add complexity to the process. If you want to buy a home in Ireland, you need to see a lawyer and get a Personal Public Service Number (PPS) beforehand. The delegation of legal authority is another option to examine.
Attorney / Solicitor
You should hire your own Irish solicitor to represent your interests during the purchasing process and get competent legal guidance. The Law Society’s website can be used to locate competent solicitors in your area.
Make sure your rights and finances are protected by the contract, and verify that the auctioneer or estate agency you’re working with has been registered with the Property Service Regulatory Authority (PSRA).
The percentage that a client pays in solicitor fees during a real estate transaction might range from 1% to 1.5%. Money spent on a lawyer is typically money well spent because they may assist you prevent or deal with typical issues.
Attorney-in-fact as it is used in Ireland
If you wish to buy a house in Ireland but can’t be physically there to handle the transaction, you can give your solicitor the authority to do so. You may complete the purchase without physically being in Ireland if you hire an Irish lawyer to serve as your representative during the transaction.
Whether you are a resident or a non-resident, you will need an Irish PPS Number (the equivalent of a National Insurance Number) in order to make a large financial transaction, such as buying a home in Ireland. The PPS is a personal taxpayer identification number that must be requested by hand. If you’re feeling lost about where to begin, seeing a lawyer can be a good idea.
The purchasing procedure
The standard practise is to pay a 5% booking deposit to the estate agency in order to have the home removed from the market. After that, your attorney prepares a purchase agreement to be sent to the seller’s attorney. The booking deposit is entirely refundable up to the moment you sign the contracts (except in the case of auction purchases, where the money becomes legally binding and non-refundable).
A additional 5% of the property’s price will be due to your attorney when the deal is finalised. Within four to six weeks following the contract’s signature, the deal is expected to close and the remaining amount (often 90% of the purchase price) will be paid.
In the time between signing the contract and making the final payment, your lawyer will prepare a purchase deed and send a series of routine inquiries (Requisitions on Title) to the seller’s lawyer about the sale of the property. It’s important to remember that while you’ve now committed to buying the property (if the requisition responses are satisfactory), the seller won’t be legally obligated to sell until they sign the Deed of Conveyance your lawyer has drafted.
Some examples of inquiries and checks that a solicitor may do are:
- If the seller is the legitimate owner of the property and has the authority to sell it, then the sale can proceed.
- If there are any proposed developments nearby that might lower the property’s price.
- If a previous application for alterations to the property was submitted or denied,
- To what extent the local government has a compulsory purchase order authorising the sale of the residence in the event that it must be demolished to make room for new roads, etc.
Home renovations and research at the land registry
Your solicitor will check the Irish Land Registry for any liens or other encumbrances on the property you are purchasing before the sale is finalised. Any existing mortgages will also be reviewed as part of this process.
It is crucial that your attorney verify that any renovations or additions to the property are in accordance with Irish Planning and Building Regulations.
You may run into trouble selling your home in the future if any renovations were made without adequate documentation or without the required planning clearance.
Ownership is legally transferred.
Your lawyer will arrange for the transfer of legal ownership into your name, and you will be required to pay any applicable transfer taxes (known as stamp duty) before the title is officially transferred.
The closing fees on a property purchase in Ireland typically amount to between 3% and 5% of the purchase price. Read on for a comprehensive rundown of the various taxes that must be paid when purchasing real estate on the Emerald Isle.