Home buying legal process tips please...

serotonin_sam

Ok, i have a preapproval for the amount required. i have viewed a house that i want to purchase - there are just two left so time is of the essence.

Now, i want to shop around for the mortgage. I want to use the preapproval i have gotten to get the ball rolling and shop around in the meantime (completion date for house - feb. 2005).

Q. If i go forward and employ the services of a solicitor - to get the contracts sorted, does he need to know who the lender will be? At what stage does he definitely need to know who the lender will be??

I am more than a bit apprehensive about this sort of stuff as i have no experience with such things. When i contact a solicitor, there is only one thing that I can think of that i want him to clarify in the contract documentation: that a certain sum 'will be withheld until the snag list is completed to my satisfaction'.

Can anyone think of anything else i should be considering here?

leahcim

Hi serotonin_sam,

Most developers have a holding deposit (usually around 2500 euros) this will reserve the house for three or four weeks. After that three or four weeks you would then be expected to pay 10% of the cost of the house as the real deposit. In this three or four week period you can shop around for your mortgage and solicitor.

Usually the solicitor for the developer will also want a letter of approval from the bank as well as the 10% deposit. These documents and cash are passed between solicitors. In my case my solicitor didn't release the balance of the cost of the house until all snag list items were fixed. I think this is standard practice.

leahim.

EKRIUQ

Once you have the Deposit 10%(Refundable if sale falls through) paid your in the clear to shop around for a mortgage. Generally a straight forward sale takes 6 weeks and finance to be arranged only takes a week.

RainyDay

serotonin_sam wrote:

When i contact a solicitor, there is only one thing that I can think of that i want him to clarify in the contract documentation: that a certain sum 'will be withheld until the snag list is completed to my satisfaction'.

Can anyone think of anything else i should be considering here?

Consider the cost of the solicitor very, very carefully. Make sure you get a quote up-front, make sure it includes VAT, make sure he is not charging you on a percentage basis.

Your snag-list clause is a nice idea, but it is almost certain that your builder won't accept it. In fact, the standard Law Society contract for new house purchases has a clause to the opposite affect, i.e. to oblige you to complete the sale regardless of any minor issues or the builder will be entitled to charge interest.

Best of luck.

eoin_f

from personal experience ( of buying it has gone this way:

1- figure out my budget, got this from approaching a few mortgage providers

1a- get a good solicitor, if you want a reference to a very good solicitor let me know and can put you in touch with a few dub based, dont be afraid of your solicitor, they arent going to push you toward a money lender in my experience and due to their client laws they cannot let anyone else know, if bad practice and they in business of keeping clients if they have any reputation. quote etc can be a good ide but personally have nevet bothered as you pay for what you get. a solicitors fees for managing deed files etc arent outrageous.

2- look around, your mortgage approval can be renewed each year after once you are still in the same financial situation as before

3- once you have found somewhere you like, and be sure to have a good look around go and check for any planning permissions given for that area ie shopping centres, factories etc that may be pre approved but not yet built. generally if you ask the builders solicitors in writing they can refuse to tell you, if so look into it yourself as if there is nothing planned they will use this as aselling point

4- retention deposit is given by you to builders for retention of right to purchase property

5- 10% full deposit given to complete first stage of purchase

6- before you close on property you are required to 'snag' the property ie look for bad workmanship

7- final payment/balance is given (upon completion of snag list to you TOTAL satisfaction) and title deeds recieved and lodged with lender by solicitor upon completion of snag list

8- you will always find a few items that need repair/touching up afre you acquire the premises, the builders if still on site are generally very approachable toward doing little fix ups for you, anything structural that develops is a legal item

9- dont be afraid of it, is so much easier than its made out to be, if i can be of any further help just give me a shout

dont forget that you are the customer in the transaction, wuld you buy a car with a bad windaw or a computer with a dodgy cd drive, is the same basic principle of customer laws

hope this is of help to you

Eoin.