The necessary steps you need to take to buy a house
The process of buying a house may seem daunting – there are a number of parties invested in the process and it can seem slow and cumbersome but the secret is to start early and educate yourself, so you know where the pitfalls may arise and be ready to deal with them - engaging early with your Solicitor is a good starting point.
There are necessary steps you need to take:
- You need to know how much money you can actually afford to spend on a property. Plus, it’s important not to forget about stamp duty, registration fees and legal costs. It’s also necessary to have life insurance to buy a property, so get this sorted before house-hunting begins. Call to Auctioneers and Estate Agents and place your name on their mailing or contacts list set your budget and do not forget about the associated costs as set out above
- You are ready to select a property. Once you’ve selected the right place, it’s time to appoint a solicitor, who will be able to help you with legal paperwork throughout the process. It is necessary to appoint a Solicitor who can advise you on the pit-falls in advance of securing a property
- The first step towards securing your property is paying a refundable booking deposit to the Auctioneer after which they can issue sales details to your Solicitor – such as the names and current addresses of the buyer and seller, the price and the proposed closing date of the sale.
- Next, contracts are issued, as well as copies of title deeds. The contract is prepared by the Vendor’s solicitor. The solicitor needs to check the terms of the sales contract and review the title documents. This involves examining issues which may affect the property such as planning issues, rights of way, mapping issues etc. In the case of a second-hand property you should arrange for a building survey to be carried out by an Engineer in advance. Your bank will send your Solicitor a legal loan pack, which needs to be completed and signed. After checking and signing the contract and sorting all issues, it’s time to pay the contract deposit, which is usually 10% of the purchase price minus the booking deposit you’ve already paid. We would generally advise that you sign a conditional contract subject to the drawdown of your loan from your Bank
- Next up, the contracts are exchanged and a binding agreement is made between the parties. Your solicitor will raise completion queries and prepare the Transfer for the transfer of the property into your names after the loan acceptance documents have been returned to your Bank.
- Next up is that your Solicitor will order your funds from the Bank no funds will be released until your life assurance and house insurance is in place along with all other documentation requested by your Bank and as set out in the letter of offer
- Next, the balance of funds is delivered by the bank and you for payment of legal fees and stamp duty and exchanged with the Solicitor for the Seller in return for the completion documents. Finally, it’s time for the close of sale and keys are released on receipt of final searches from the Solicitor for the seller on the day of completion you do not need to attend at the completion as your Solicitor will attend on your behalf.
- There’s still work for your Solicitor to do: the Transfer must be signed and be stamped by your Solicitor. Then, the deed is sent to the land registry for registration. Regardless of how long this process takes to complete, at this point you’re now the legal owner of the property. Once the registration is complete the documents are sent to your bank as they hold a mortgage over the property and these will be released to you on payment of the mortgage.
If you require any further information or advice feel free to contact us at Eoin Murphy Solicitors we are here to help.