Buying a house- legal issues

moreil

Hi,

I am nearing the closing of the purchase of a house. A few things have arisen and I am unsure where I stand.

- My solicitor wants me to pay the stamp duty and his legal fees now, before the closure, as he says the bank have instructed that I put him in funds before the sale closes. Is this possible or accurate as I understood that stamp duty is payable after the closure of the sale. Also, I understood from my solicitor previously that he would send me a full bill after the sale closes.

- Also, my solicitor is looking for my P60 so he can identify what tax group I am in? Why would this be? I have full mortgage confirmation from the bank, who have seen my P60 etc?

Genuine answers only please.

Thanks for your help

zealano

If you are getting a mortgage the solicitor's undertaking that you willhave signed the authority on obliges the solicitor to be in funds for all stamp duty and registration fees prior to releasing the mortgage cheque - ie closing the sale.

In relation to the P60 - stamp duty returns have to be filed on line by the solicitor and to do this in addition to requiring the PPS number of the client the solicitor must also give the correct tax type.

MagicSean

Unless you had agreed to pay his fees in advance I don't think he has a right to demand he be paid before closing. Open to correction on that one though.

ResearchWill

Seanbeag1 wrote: »

Unless you had agreed to pay his fees in advance I don't think he has a right to demand he be paid before closing. Open to correction on that one though.

I can't think of any legal right but I may be wrong, but I suppose it's a bit like the lady of the night money up front or before the end less chance of been caught lol.

blueythebear

Seanbeag1 wrote: »

Unless you had agreed to pay his fees in advance I don't think he has a right to demand he be paid before closing. Open to correction on that one though.

I think the solicitor's jjust requesting it all upfront as he's looking for the outlay and purchase monies too. I'm sure he feels it's handierr to take one large cheque from the client now rather than have to (potentially) be harassing the client for the cash after the transaction is finished.

If you agreed a deal with him on a flat rate, e.g. 1500 plus VAT plus Outlay, I wouldn't see an issue with him asking for fees upfront.

moreil

Thanks a million. I will go ahead and pay him upfront.

Many thanks

moreil

Thanks a million. Wasn't too sure where I stood.

Hoffmans

rather than starting a new post while on the subject of conveyancing a house has anyone a view on the holding of a property
as an allodium rather than a fee simple ,
in regard to all the new taxes arriving down the line..

nuac

Haven't come across "allodium" in 40+ years of practice. Old legal concept re land tenure, now irrelevant

ResearchWill

nuac wrote: »

Haven't come across "allodium" in 40+ years of practice. Old legal concept re land tenure, now irrelevant

You may be able to answer a query I have, nuac, is allodium just an old word for fee simple, or is it totally different.

blueythebear

ResearchWill wrote: »

You may be able to answer a query I have, nuac, is allodium just an old word for fee simple, or is it totally different.

Fee simple is the nearest thing to complete ownership in Ireland. There is no "better" title available in our system of property ownership. Allodium is a form of ownership that is a throwback to feudal times, the last vestige of which was removed from Irish Law by the 2009 Act.

Fee simple derives from Allodial title as it is its' modern equivalent.

The allodial title is an issue raised by Freemen to avoid paying property taxes and other household charges. I really hope this is not the direction that this is going!

Hoffmans

i must disagree that allodium is an old unused form of tenure as the state use it on their own properties continiously....

if the fee simple is only the nearest we have to full ownership of our property subjected to extra encumbrances or conditions ,
it may be just as well better to rent than to own a property going forward...

Benny122

When purchasing a property the solicitor draws up paper work - is it advisable to draw up a will at that point also?

And is it possible to will 50% of a property to someone?

ABajaninCork

Yes and Yes.

Benny122

ABajaninCork wrote: »

Yes and Yes.

So that would be similar to joint ownership - only it doesn't happen until you die!

Benny122

Benny122 wrote: »

So that would be similar to joint ownership - only it doesn't happen until you die!

Are u a solicitor

Benny122

Hi there

I am thinking of buying an apartment.

Sole mortgage and I am getting a gift also however the gift is coming from my "partner". Will the banks know that this gift comes from him. All I've been told is to provide a letter from a blood relative.

Also he will not be on the deeds. Can I make any types of arrangements regarding the house. He will be paying half mortgage. Is the only way around this to will him 100% of it? We will both have life cover also and I've been told that I pay his and he pays my policy and god forbid should anything happen I get his policy proceeds and he gets mine.

Obviously the deeds can be changed once the mortgage is paid for?

And obviously he would be liable to tax on the property as we are not married? But he would have my life cover

hullaballoo

Benny122 wrote: »

Hi there

I am thinking of buying an apartment.

Sole mortgage and I am getting a gift also however the gift is coming from my "partner". Will the banks know that this gift comes from him. All I've been told is to provide a letter from a blood relative.

Also he will not be on the deeds. Can I make any types of arrangements regarding the house. He will be paying half mortgage. Is the only way around this to will him 100% of it? We will both have life cover also and I've been told that I pay his and he pays my policy and god forbid should anything happen I get his policy proceeds and he gets mine.

Obviously the deeds can be changed once the mortgage is paid for?

And obviously he would be liable to tax on the property as we are not married? But he would have my life cover

Moderator: Legal advice cannot be sought or given here. If you require legal advice, please engage the services of a legal professional.

Please also do not post the same thing in multiple threads and make sure your post is relevant to the thread you are posting in.

Victor

Benny122 wrote: »

Hi there

I am thinking of buying an apartment.

Sole mortgage and I am getting a gift also however the gift is coming from my "partner". Will the banks know that this gift comes from him. All I've been told is to provide a letter from a blood relative.

Also he will not be on the deeds. Can I make any types of arrangements regarding the house. He will be paying half mortgage. Is the only way around this to will him 100% of it? We will both have life cover also and I've been told that I pay his and he pays my policy and god forbid should anything happen I get his policy proceeds and he gets mine.

Obviously the deeds can be changed once the mortgage is paid for?

And obviously he would be liable to tax on the property as we are not married? But he would have my life cover

I'm not a lawyer, but that sounds like a lot of messing going on, which may come back to bite you - hard.

Saying "partner", with quotes seems peculiar. It might have made sense 20 years ago, but not today.

Note that there may be liabilities under the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 that might not have corresponding benefits.

The tax treatment of insurance policies in such situations would need clarity.

hullaballoo is right, you each need to speak to your own solicitor, that is independent of (and not recommended by) anyone else in the transaction.

Steve

You also need to consider liability for gift tax.

You can enact a binding private agreement on equity in the house with the 'partner', your solicitor will be more than able to do this.

Benny122

Steve wrote: »

You also need to consider liability for gift tax.

You can enact a binding private agreement on equity in the house with the 'partner', your solicitor will be more than able to do this.

What kind of agreement is this? Can you tell me more about it please

Steve

Basically, you stipulate who paid what towards the house and who owns what percent of equity should it have to be sold.
What happens if one of you wants to get out / sell and how much do you get? what happens if one of you die or is declared bankrupt or is sued for personal assets?

As I said, your solicitor can work the fine print, that's what they do.

Benny122

Steve wrote: »

Basically, you stipulate who paid what towards the house and who owns what percent of equity should it have to be sold.
What happens if one of you wants to get out / sell and how much do you get? what happens if one of you die or is declared bankrupt or is sued for personal assets?

As I said, your solicitor can work the fine print, that's what they do.

Oh that's a great relief thanks for the advice. So if the property is just in my name we can draw up with equity contract e.g how much deposit each gave, what happens if the property is rented, what happens if it's sold etc

Benny122

Benny122 wrote: »

Oh that's a great relief thanks for the advice. So if the property is just in my name we can draw up with equity contract e.g how much deposit each gave, what happens if the property is rented, what happens if it's sold etc

How would that work with a mortgage?

Steve

Deleted User wrote: »

How would that work with a mortgage?

Any debt can be re-assigned with the right paperwork.