A number of expenses, such as mortgage payments, legal fees, deed registration, and stamp duty, must be paid when purchasing a house in Ireland. Buying a home in Ireland is only good if you can afford it and want to remain there for a while. If not, you could be taking a financial risk that isn’t worth it.
Set a spending limit that you’re comfortable with
Be careful to include in not just the asking price of the home, but also closing charges like attorney fees and stamp duty.
Get pre-approval for a mortgage by talking to banks and brokers to determine how much you can pay.
Many different mortgage options are available, so it’s important to get quotes from many lenders. Use a mortgage broker if you can’t do it on your own.
The Hunt Begins
The majority of your property seeking efforts in Ireland will have to be made alone. Realtors will only show you homes they represent, not those other firms represent.
You should begin your search in local publications and internet resources after you have settled on a desirable area. Take a look at Daft.ie, Rent.ie, Property.ie, Myhome.ie, and Gumtree.ie, all of which deal with real estate. Set up a search alert, and you’ll get an email the moment a property matching your criteria is added to the database. You should also get in touch with and register with local Real Estate Agents doing business in your desired locations. You can wait to hear from them until they have anything acceptable for viewing, but you should keep looking on your own because you can’t count on that happening.
Bring a property checklist with you when you go on home viewings to assist you make a well-informed selection. Consider the home’s BER (Building Energy Rating) as well. You may learn about the home’s energy efficiency from the BER. This data may serve as a basis for making informed comparisons between properties and as a roadmap for increasing a home’s energy efficiency. In case you decide to go with a house that requires some work, be sure to include these expenses into your overall budget.
The house’s proximity to known high-radon areas is another consideration. You may accomplish this using the EPA’s Radon Risk Map, and you can also ask the seller whether the house has been radon-tested.
The purchase price of a house purchased after January 1, 2010 will be recorded in the Residential Property Price Register maintained by the Property Services Regulatory Authority. It’s probably worth your time to see whether this is relevant to you.
When Purchasing a Home
A property survey should be a condition of any offer you make on the property. You should acquire a survey of the property before concluding the acquisition to find out whether there are any flaws the seller has failed to disclose. In Ireland, chartered surveyors are represented by the Society of Chartered Surveyors Ireland (SCSI).
You should revisit your mortgage lender to get an official clearance before signing a deal. If you can’t get a mortgage for the house, you risk losing your down payment and maybe more.
Private treaty sales and public auctions are the two most popular ways for real estate to change hands in Ireland.
Sale through Private Agreement
To negotiate a sale price, you may get in touch with either the seller directly or through the seller’s representative (often an estate agency). After agreeing to purchase a house with the help of an estate agent, you may be asked to pay a booking deposit. After the reservation money has been paid, the formalities of purchasing the property may commence.
Get a signed mortgage commitment from your lender. Both house insurance and mortgage insurance are mandatory in today’s market. These may be set up with your mortgage lender, but it’s best to compare rates and terms from many institutions.
After having the purchase agreement reviewed by your attorney, you will sign it and return it to the sellers’ attorneys for processing. This is a binding purchase agreement for the property. A deposit (minus any booking deposit) of up to 10% of the purchase price is required after the contract has been signed. Keep in mind that until the seller signs the contract, they have not committed to sell you the property.
Open Market Price
The seller or the auctioneer may set a minimum acceptable bid on the item. It is essential that the property reach the reserve amount. If the price drops below that, the home will be taken off the market. The seller, however, retains the right to pull the property from the auction at any moment before or after the reserve price is met. The seller may also find a buyer for the property in advance of the auction.
The auction will take place at a set time and day. You should have your lawyer review the contract for sale (issued by the seller’s lawyer) and any other title papers that are referenced in the contract before the auction. Your lawyer will then be able to arrange a survey of the property to confirm its structural integrity. In addition, you need have a mortgage pre-approval letter for the home.
If your offer is accepted, you’ll need to sign a contract and put down a deposit to secure the home. Purchasing house insurance as soon as possible is highly recommended.
Completion of the Real Estate Purchase
The acquisition of the property cannot be finalised until the contract for sale is signed. The parties are legally obligated to carry out the terms of the sales agreement. After signing this agreement, you risk losing your deposit if you decide to back out of the transaction.
Auction purchases require rapid execution of the purchase agreement
Before you sign the contract for a private sale of real estate, your lawyer will make sure everything is in order.
Your attorney will run Requisitions on Title after you sign the contract but before the deal closes. Here, the buyer’s lawyer will ask the seller’s lawyer some broad property questions, such whether or not the transaction includes the fixtures and fittings. After these are completed, your lawyer will draught a Deed of Conveyance for you and the seller’s lawyer to sign.
In addition, your lawyer will look into whether or not there are any liens or judgements against the seller (such as for bankruptcy) or the property (such as an unpaid mortgage).
Your lawyer will call the mortgage company to seek the Loan Cheque (the remaining amount of the purchase price) after the seller’s lawyer has signed off on the Deed of Conveyance. The money is given to the seller’s attorney, and the keys and paperwork are given to your attorney.
Tax on Stamps
There is a stamp duty tax that must be paid whenever a property is transferred. If your new house costs more than €2 million, you’ll pay 2% more than if it cost less than €1 million. Your lawyer will need this information from you before the deal can close. The Revenue Commissioners receive the stamp duty and affix it on the deeds (which reveal the owner of the property). The registration of the deeds is contingent upon receipt of this fee.
Once the Purchase Is Finalised
Deeds evidencing the transfer of ownership and, if appropriate, the discharge of a mortgage, must be recorded with the PRA after the transaction has closed.
The last thing to do is to move into your new house. Please make good use of our relocation checklist as you get ready to relocate.
Are you interested in learning more about the Irish real estate market? Read more of our articles on investing in Ireland.