Choosing your new home:
it must be noted that the auctioneer will always show the house in the best light, therefore, it is important that you do your own research.
Every area is very different and therefore, if you are not familiar with the area you are interested in, it is wise to visit throughout different times of the day and even week – evenings and weekend times are advised, as these are the busiest times. Take some time walk around the area and get to know the services and amenities that will be available to you. It would even be worth taking a trip to the local Council office in order to check the development control plans to gain an understanding into what future plans are being proposed for the area. There is no point in buying the dream house only to be overshadowed in a couple of years time by a shopping Centre or a motor way.Remember the day you buy is the day you sell…
Do not be afraid to offer less than the asking price. The asking price is always subject to bargaining.
If you have decided to purchase the property, it is important to make a note as to what is included in the sale and make sure this is included in the contracts. Are the kitchen appliances included, furniture? Make sure that the items you do not want are removed eg, old furniture as the last thing you want to do is have to spend €500 on a skip to remove unwanted items.
Finally, on the day of closing inspect the property to make sure that the property and contents within are as agreed, all unwanted items removed from the property and any meter readings for the utilities recorded eg, electricity and Gas. You should then contact the utility companies and arrange that the utilities are put into your name and give them the current meter readings so you are not charged for the previous owner’s usage.
The Legal process:
Once your new home is chosen you will give the auctioneer a booking deposit. This deposit is fully refundable and no contract exist. Both you and the seller can withdraw from the agreement without penalty.
You will also need to give the auctioneer your solicitors details. If you do not have a solicitor, EDUC can give you a list of solicitors that offer reduced rates to Dublin Mortgage Company clients.
The seller’s solicitor will then send purchase contracts to your solicitor.
Once you give your deposit you should call EDUC mortgage and we will arrange for the Lender to send out the valuer. The lender’s valuer is not doing a structural survey of the property but is only giving an independent valuation of the property insuring that the purchase price is the value of the property, ensuring you are not overpaying.
At this stage you will need to apply for a mortgage protection policy to cover the mortgage in the event death of either mortgage holder. This is provided free of charges for the first year for members of the INTO/IFUT and we will contact you to arrange this.You should also consider getting a full structural survey of the property to insure that the property has no defects.
Once the valuation is completed and any outstanding paper work is forwarded to the lender, the lender issues your solicitor with the full loan offer.
Your solicitor will examine the purchase contracts, the title of the property and the loan offer. Once the solicitor is happy with all of the above the solicitor will contact you and make an appointment for you to come in and sign the contracts.
On signing contracts, you will need to pay a contract deposit of 10% of the purchase price less the booking deposit paid to the Auctioneer.
Once you sign contracts and pay the booking deposit, the solicitor will return the contract to the seller’s solicitor in order for the seller to sign the contracts and agree a closing date which is the date you will get the keys for the property. At this stage the seller signs the contract and you are now in a legally binding contract. If you fail to complete the purchase you will lose your deposit.
A week before you are due to get your keys the solicitor will contact you to arrange to pay any outstanding fees, stamp duty and balance of funds to complete the purchase, and now, the property is yours!