When the house hunting is complete and you’ve made a decision about which house is the right one for you, the next step is to make an offer and enter into the final stages of the house buying process.
Here are some tips to help you on your journey to getting the keys for your new home.
Making an offer on a house
Don’t delay in making your offer. If you’re happy with the house, make your offer as soon as possible to avoid any other buyers having a chance to get in ahead of you.
Also, big yourself up, first time buyers have the advantage that they’re not involved in a chain, so make it clear that you’re a first time buyer. The real estate agent or auctioneer will be happy that you will be able to proceed quickly, as you don’t have another property to sell. Also, if you have anything else arranged that will speed up the process further, make sure to mention that to them too. For example, you could mention that you have your mortgage in principle, flexible move-in dates or your conveyancer or surveyor sorted.
One key tip is that if you make your offer by phone call, make sure you follow it up with a written offer.
On the money side of things, it’s important to make a competitive offer while also keeping in mind that you shouldn’t overstretch yourself. It can be easy to get carried away when you fall in love with a property, but it’s also important to keep things realistic and ensure you don’t cut yourself short.
What to do when your offer on a property is accepted
One thing to keep in mind when your offer is first accepted is that you shouldn’t start celebrating too early, it’s best to wait until things are set in concrete. The house buying process is a long one and while you’re on the right path, you’re not quite there yet, so don’t get ahead of yourself by celebrating too early!
When your offer on a house is accepted your estate agent will send you a written contract with the heading ‘Subject to Survey and Contract’. It’s important to note that at this point both parties can still back out from the purchase if they choose to.
Once you receive this contract, ask for the property to be taken off the market. You don’t want to be gazumped by another bidder with a higher offer.
Now it’s time to finalise your mortgage, this is usually a quick process once you already have your mortgage in principle. However, as buildings insurance is obligatory in Ireland, most lenders will require proof that you have taken out a buildings home insurance policy before they approve your mortgage. You can see more information about home insurance and your policy options in the ‘Home Insurance’ section below.
Once you have approval of your mortgage, your solicitor will sign the contract and send it to the seller’s solicitor. You have now legally agreed to purchase the property and you will be required to pay the deposit. When the seller signs the contract they have legally agreed to sell you the property. It’s important to note that if you pull out of buying the house after signing the contract for sale, you may lose your deposit.
Conveyancing and Surveying
What is conveyancing?
As discussed in the first part of our first time buyers guide, conveyancing is the legal work involved in buying or selling a property, for example, the transfer of ownership and stamp duty etc. If you haven’t already found a solicitor to carry out your conveyancing work, you can use the Law Society’s website to find a solicitor in your area.
Property Surveyor
It’s important to note that a seller isn’t required to tell you about any defects in a property. So, you should hire a surveyor to survey the property to find out if there are any defects that you should be aware of. The survey will highlight any structural issues with the property and identify defects that you may not have noticed when viewing the house.
You can find a list of chartered surveyors through the Society of Chartered Surveyors Ireland (SCSI).
If the surveyor finds any issues that were unexpected, you are entitled to pull out of the purchase of the house.
Closing the sale of a house
Stamp Duty in Ireland
As covered in the finances section of our first-time buyers guide, stamp duty is a revenue tax that you must pay when transferring the ownership of a property in Ireland. For residential properties in Ireland, you will need to pay 1% stamp duty on the first €1 million and 2% on anything over €1 million.
Your solicitor will calculate the stamp duty you are required to pay on your property, and they will request this amount from you before the sale is closed. They will pay the stamp duty to Revenue who will then place a stamp on the deeds of the property. It’s important to note that without this stamp, the deeds cannot be registered.
Deed of Conveyance
Your solicitor will draft a Deed of Conveyance, which is a legal document that is used to transfer the title of a property from one person to another. Your solicitor will send this to the seller’s solicitor for approval.
Once the Deed of Conveyance is approved by the seller's solicitor, your solicitor will contact your mortgage provider to request an approved loan cheque for the remaining balance of the purchase price. This is then paid to the seller's solicitor. Once that is complete, all documentation and keys to the premises are handed over to your solicitor.
The deeds of your house
Once everything is finalised and you receive your deeds, you must register them with the Registry of Deeds or the Land Registry. The Property Registration Authority (PRA) is the authority that is responsible for both systems of registrations.
Your solicitor will assist you with finalising the deeds to your house with the PRA.
Home Insurance
AXA can help you to protect your property with a home insurance policy that is suitable for your needs.
AXA provides the following home insurance cover options:
Buildings Insurance - This cover protects your house, sheds, green houses, domestic garages, summer houses and other buildings which do not form part of the main building of the home. It also covers permanent fixtures like kitchen units and bathroom fixtures etc.
Contents Insurance - This cover protects your belongings, like electronics, paintings, furniture etc.
Buildings & Contents Insurance - This cover protects both your property and your belongings. Your policy documents will detail what cover applies.
You can apply online with AXA and we can send you a home insurance quote to suit your needs.
If you have any questions in relation to home insurance, check out our Home Insurance FAQs or simply get in touch with the AXA team and they will be happy to help.
Time to move in
Ok, so now that all of the paperwork and transfers are done - the keys are now yours!
It’s time to move into your dream home.
