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House Puchase - Bond issue

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  • 05-07-2013 12:18am
    #1
    claregal
    Registered Users Posts: 12 ✭


    We are in the process of purchasing a house, this evening I received a letter from our solicitor stating that while investigating the title deeds they now note that the estate is not under charge of the local authority and the bond that the developer had with the council has expired and is now with IBRC...it also states that they will neec to qualify this undertaking to the bank and await their decision.

    I find this very confusing, can anyone provide clarity on this matter? I have logged a request for more info from my solicitor by email tonight.


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    #2
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    claregal wrote: »
    We are in the process of purchasing a house, this evening I received a letter from our solicitor stating that while investigating the title deeds they now note that the estate is not under charge of the local authority and the bond that the developer had with the council has expired and is now with IBRC...it also states that they will neec to qualify this undertaking to the bank and await their decision.

    I find this very confusing, can anyone provide clarity on this matter? I have logged a request for more info from my solicitor by email tonight.

    Don't lose any sleep over this, it's a very common situation and banks are generally happy enough to accept a qualification on title of this nature. Have an properties in the estate been sold recently? If they have, they probably had the same issue to overcome with their lender. In this case the qualification on title is where your solicitor needs to inform the bank that the local authority hasn't yet taken over responsibility for the roads etc and ask them to confirm that they are still happy for you to go ahead with the mortgage. I've yet to come across a case where the bank denied this type of qualification. It'll probably take a week for your solicitor to get a response from your bank but I'd imagine it will be fine..


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    #3
    Pro Hoc Vice
    Closed Accounts Posts: 6,087 ✭✭✭Pro Hoc Vice


    claregal wrote: »
    We are in the process of purchasing a house, this evening I received a letter from our solicitor stating that while investigating the title deeds they now note that the estate is not under charge of the local authority and the bond that the developer had with the council has expired and is now with IBRC...it also states that they will neec to qualify this undertaking to the bank and await their decision.

    I find this very confusing, can anyone provide clarity on this matter? I have logged a request for more info from my solicitor by email tonight.

    Your solicitor must not just get good marketable title for you he must do it for the bank. Anything less he must inform the bank so they can decide do they want to lend the money. While the title he is getting may be good there is a question as to how marketable it maybe. In other words there are less people who would buy a house that has not been taken in charge and that the bond no longer exists than people who will buy where the council has taken in charge.


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