Please find below a simple guide to the steps involved in buying a home

There are no residency-based restrictions to buying property in Ireland. You can buy property here if you are an Irish citizen, EU/EEA citizen, non-EEA national or even non-resident in Ireland. However, owning property in Ireland does not mean you have the right to live here. Your right to live in Ireland depends on your personal circumstances and is separate to property ownership.

If you are considering buying a property, consider these points below:

Find out what you can afford

You should review your budget to find out how much you can afford in monthly mortgage repayments. You should ensure that you have enough to cover all the costs involved in buying a home, for example, mortgage costs, legal fees, insurance and stamp duty. The amount of money you can get as a mortgage loan, and the amount you need as a deposit are governed by Central Bank lending limits.

Get a solicitor

While you are looking for a property, you should hire a solicitor to do the conveyancing. Conveyancing is the legal work involved in buying or selling property. Conveyancing charges can vary between solicitors, so it is worth contacting several solicitors to compare prices. You can use the Law Society’s website to find a solicitor in your area.

Find a property you like and can afford

In Ireland, the main property websites are www.myhome.ie and www.daft.ie These portals are the largest property portals and practically all properties will be listed here for sale and to rent.

Get mortgage approval

Very few people can buy a home without getting a mortgage. A mortgage is a long-term loan secured against the property you buy. This means if you don’t repay your mortgage, you may lose your home. 

You can get mortgage approval in principle before you start to look for a property. This lets you know how much you have to spend. However, when you find a property you like, you must get formal mortgage approval before you sign the contract for sale. If you sign a contract for sale and then don’t get mortgage approval, you will lose your deposit and there may be other penalties. 

Types of Sale – and process for each method

Private treaty sale

A private treaty sale is where the property is not put into an auction. Nowadays many agents may use an online bidding platform in order to record offers for legal compliance. You can contact the seller’s agent, register to bid through their website, and once you are approved you will be able to place a bid in order to ultimately agree a purchase price.

Once you are sale agreed to buy a property you will need to pay a booking deposit to the estate agent. The legal process to buy the property may only start when the estate agent receives your booking deposit. This deposit is refundable up to the signing of the contract for sale. 

Your mortgage provider will give you formal mortgage approval and issue you with a loan pack. You will need to think about mortgage protection insurance and home insurance. You can organise these with your mortgage provider but it is advisable to shop around. When your solicitor has checked the contract for sale, you will sign it and pay a deposit (less any booking fee). 

Buying by Public auction

Auctions are usually advertised online by the estate agent or by a sign on the property. Generally, the seller or the auctioneer will set a reserve figure for the property. The reserve figure is the value the property must reach at auction. If the property does not reach the reserve figure it will be withdrawn from the market.

The seller can also withdraw the property from the market at any time during the auction, even if it has achieved the reserve figure. The seller can also sell the property before the auction.

Before the auction takes place, your solicitor should check the contract for sale for the property (issued by the seller’s solicitor) and all title documents that are referred to in that contract. When your solicitor has satisfied their enquiries, you can organise a survey of the property to ensure it is sound. You should also get formal mortgage approval for the property you want to bid on.

The successful bidder pays a booking deposit (non refundable) and signs the contract for sale immediately. It is important to get home insurance as soon as possible.

Get a survey

A seller does not have to tell you about defects in a property. So, before you finalise the purchase, you should get a survey of the property to find out if there are any defects. The survey will help highlight any issues you may not have been aware of when you made your offer. For example, if your surveyor finds that the roof needs to be replaced, you could change your offer to account for this, or decide not to buy. The Society of Chartered Surveyors Ireland (SCSI) is the professional body for chartered surveyors.

Note – In Private Treaty sales you will generally arrange a survey as soon as the sale is agreed, however if you are buying by Auction you will need to have your survey completed prior to the Auction.

Signing the contract for sale

The contract for sale binds the parties to the completion of the sale. If you withdraw from the sale after this contract has been signed, you may lose your deposit. If you buy at auction you must immediately sign the contract for sale. If you buy through private treaty your solicitor will check that the contract is in order before you sign it. The completion date will be set out in the contract and the balance of the agreed purchase price will be due on that date. 

Closing the sale 

Requisitions on Title and Deed of Conveyance

After signing the contract and before the completion date of the sale, your solicitor raises some general queries about the property with the seller’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. 

When your solicitor gets a satisfactory reply to Requisitions on Title, they will draft a Deed of Conveyance which is then approved by the seller’s solicitor.

Your solicitor will check that there are no judgements against the seller (for example, bankruptcy or sheriffs’ searches). Your solicitor should also find out where the title to the property is held (either in the Land Registry or the Registry of Deeds) to ensure that there is nothing unusual relating to the property, for example, an outstanding mortgage.

Once the Deed of Conveyance is approved by the seller’s solicitor, your solicitor will contact your mortgage provider to request the approved loan cheque. This is the remaining balance of the purchase price. It is paid to the seller’s solicitor and all documentation, and keys to the premises are handed over to your solicitor.

Stamp duty

Your solicitor will calculate how much stamp duty is due on the property and request this amount from you before the sale is closed. The stamp duty is paid to the Revenue Commissioners, who place a stamp on the deeds. Without this stamp, the deeds cannot be registered. The deeds name the owner of the property.

After the sale is completed

Deeds

Once a sale is completed, your deeds, showing the new ownership details must be registered with either the Registry of Deeds or the Land Registry. Tailte Éireann  is responsible for both systems of registration. 

Your solicitor will help you to finalise the deeds to your house with Tailte Éireann. This can take months or years to complete. Even if this does take a long time, you are still the owner of the property and, if you want, you can sell the property before registration is complete.

Moving house

There are many things to do when moving house, for example, the first important thing is to ensure you have a record of the utility meter readings on the sale closing day. This ensures the supply continues and that you can set up your utility accounts for electricity and gas. You will need to ensure you set up Wifi and cable TV if required and also you will need to order your bins from the local supplier. Consider also redirecting your post and changing your details on the electoral register.