real estate Ireland, facts to know when buying in Ireland.

real estate Ireland? What are the facts you need to think about.

It is a fact that it is not possible to buy real estate in Ireland without legal advice and assistance, the transfer of rights, interests and liabilities, will require the appointment of a solicitor by the parties to the transaction.

It is also a fact that Ireland's practicing solicitors must hold a "practice certificate" issued by the Law Society of Ireland on an annual basis.

This is a very important fact to consider when buying in Ireland because if for your real estate deal is to proceed your solicitor must have one of those certificates.

The two most common methods by which properties in Ireland are purchased and sold are:Public auction and Private treaty sales.

Buying real estate in Ireland through public auction.

A public auction involves two or more parties competing for the property.

Each party makes an offer (bid) and the property is sold to the highest bidder.

Notice of the date and time of the auction is usually given by advertisement in a local newspaper or by a sign on the property.

A reserve figure is set for the property, usually by the owner or auctioneer.

The reserve figure is the value the property must achieve; anything below this and the property will be withdrawn from the market.

The reserve figure often reflects the level of interest from buyers for the property.

When the reserve price has been reached, the vendor usually sells to the highest bidder.

At all times during the auction, however, the vendor has the right to withdraw the property from the market, even if it has achieved the reserve figure.

Property auctions are conducted under standard Law Society conditions of sale.

These conditions stipulate that unless otherwise stated, all auctions have a reserve price, which is rarely disclosed.

On occasions where a reserve price is stated, this means that the highest offer on the day that matches or exceeds the reserve price will secure the property.

Another important fact to remember is that in almost all cases, the vendor (seller) reserves the right to sell the property before the auction.

There are two representative bodies for professional auctioneers and valuers (realtors,real estate agents ) in Ireland.

In advance of the auction, your solicitor should check the contract for the property (issued by the seller's solicitor) and all title documents that are referred to in that contract.

Important issues to consider at this stage are whether there are any restrictions on extending, sub-letting or developing the property; conditions that are attached to the sale;

Information about service charges and local services; boundaries; rights of way; items included (if any) with the property, etc. When the purchaser's solicitor has satisfied his or her enquiries,

the purchaser organises a survey of the property to ensure it is sound.

It is important at this stage to honestly evaluate all cost facts associated with the purchase of property (i.e., mortgage costs, legal fees, registering deeds, stamp duty, etc.).

If you have determined that you can afford to purchase the property taking into account all of these costs, then you are ready to attend the auction.

The successful bidder is the person who makes an offer of at least the reserve price.

The successful bidder immediately pays a deposit (10% of the asking price) and signs the contract.

real estate Ireland, facts you need to know.

Should the purchaser withdraw from the sale after this contract has been signed, he or she may lose the deposit he or she has paid.

This contract for sale include "building agreements" as most properties these days are sold and developed (built upon) by two arms of the same company.

In the past, and rarely currently, one company would sell a buyer land and a different company would build upon it.

In such instances, the contract is actually a "contract for sale and building agreement" but in virtually all residential sale cases, a contract is simply known as a contract for sale.

The completion date will be set out in the contract and the balance of the agreed purchase price will be due on that date.

In the intervening period between the signing of the contract and the completion date, the purchaser's solicitor raises some general queries about the property with the vendor's solicitor.

Such enquiries would include:

Is a Family Home Protection Act declaration needed? This is a factual declaration that specifies whether or not the property is a family home.

If it is a family home, further documents are required that confirm that the interest of both spouses is regarded in the deeds, i.e., that a husband is not selling without a wife's knowledge or consent.

If it is not a family home, then the sale can proceed without further documentation.

Is the consent of the Department of Agriculture, Fisheries and Food regarding sub-division of land required under the Land Act 1965 Some properties, mainly rural, may have regulations or inhibitions regarding sub-division.

Check these facts out or you could get yourself into a messy situation.Is planning permission in place for any changes that have been made to the property? The consent of the Department of Agriculture and Food to the sale of such property or part of such property may be required under the Land Act 1965.

When the purchaser's solicitor receives satisfactory replies to "Requisitions on Title", a Deed of Conveyance (or assignment) is drafted by him or her and approved by the vendor's solicitor.

Requisitions on Title are a standard set of questions relating to the sale of a property that deal with such things as whether fixtures and fittings are included in the sale.

In simple terms, requisitions are a checklist and these are drafted by the Law Society so as to be standardised throughout the legal profession.

Once the Deed of Conveyence is approved by the vendor's solicitor, the purchaser's lending institution will be contacted by the purchaser's solicitor to issue the approved loan cheque, the remaining balance of the purchase price is paid to the vendor's solicitor and all documentation, and keys to the premises are handed over to the purchaser's solicitor.

It is also imperative that on the date of closing the sale, the purchaser's solicitor has made arrangements for searches to be made against the vendor to ensure that there are no judgements lying against the vendor (i.e., bankruptcy or sheriffs' searches).

Furthermore, depending on where the title to the property is held either in the Land Registry or the Registry of Deeds .

Once a sale is completed, the purchaser's deeds, showing the new ownership details and mortgage details, if relevant, must be registered with either the Registry of Deeds or the Land Registry.

Before this can happen, the deeds must be presented to the Revenue Commissioners who will determine how much, if any, stamp duty is due.

Stamp duty is due when deeds are presented to the Revenue Commissioners after the closing of a sale.

However, the solicitor will calculate how much stamp is due and request this from the purchaser prior to the closing of the sale.

Stamp duty is calculated as a percentage of the purchase price, between 3 and 9% depending on the value of the property.

Some buyers are exempt from stamp duty on transactions up to a certain value.

The amount is paid to the Revenue Commissioners who place a stamp on the deeds.

Without this stamp, the deeds cannot be registered.

real estate Ireland, Property Stamp Duty Facts

Stamp duty on Irish real estate was revised in the governments budget of December 2007 and this and many other factors are way beyond the scope of this article.

Hopefully though this will give you some idea of what is involved. The source of this information is the Citizens Information Bureau Ireland and you will find all the relevant information there.

Make sure to check it out and get all your facts on Ireland's property market and how it works.

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