BUYING PROPERTY ON- LINE - SPECIAL CONSIDERATIONS - O'Shea Russell ...
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BUYING PROPERTY ON- LINE SPECIAL CONSIDERATIONS
Content:
Pages
1. How does buying On-line vary from
the traditional purchase models? 1-2
2. What Special Considerations apply for an
On-Line Purchaser? 3
A. Title 4
B. Boundaries 5
C. Planning Permission/Building Regulations. 6-7
D. Septic Tanks/Soakage Areas. 8-9
E. Access Issues 10-11
F. Bank Consent. 12
G. Legal Burdens on Title. 13
H. Unfinished/Unmanaged Estates. 14-20
I. Buying from Receiver/Bank. 21-24
J. Buying from the Plans. 25-28
K. Are contents included? 29
L. Vacant Possession. 30
M. Notices/Protected Structures. 31
N. Managment Companies. 32-33
3. Is there anything extra for the Non Resident
Purchaser to consider? 34-35
4. The Importance of Communication. 36-39
5. What happens for you as a Purchaser
once your On-Line Purchase Contract
has been executed? 40-45
6. Request a Quote from O’Shea Russell
Solicitors (www.oshearussell.ie) 46-48
APPENDICES
A. The Buyer’s Checklist. A1-A12
B. Get your FREE Pre-Auction Legal Report
(www.oshearussell.ie) B1
TIP # 1
DO YOUR
HOMEWORK!
Fail to prepare, prepare to
Fail!1. How does buying On-line vary from the traditional
purchase models?
Over recent years, more and more items are being sold
on-line. This practice has even extended to the sale of
Residential and Commercial Properties. BIDX1 were the
forerunners in selling property in this fashion and other
Sales Agents are adopting similar practices. One of the
results of the Covid-19 crisis is that Sales Agents have
been looking at innovative ways to bring properties to the
Market and more on-line selling is envisaged.
The fundamentals of buying property never truly change.
The precautions are the same whether buying privately, at
Auction or at On-line Auction. HOWEVER, there is
greater potential for costly mistakes when you buy on-line.
The ease with which a person can bid and the
“remoteness” of the process can lead to oversights and an
omission to do the essential “legwork”.
At O’Shea Russell Solicitors we have been providing
Conveyancing Services for over 30 years. We know what
we are doing, we understand Client needs and we strive to
offer value for money.
1For those bidding on-line for Property we offer a truly
unique and FREE Pre-Auction Legal Review to minimise
the risks to bidders. This Guide has been prepared with
the On-Line Bidder in mind, however, the Principles and
TIPS contained in the Guide apply whether buying by
Private Treaty by Auction or at On-Line Auction.
There is an old and true adage that applies to all Property
Purchases and urges caution around such purchases:
“Remember, the day you buy is the day you sell!”.
Buy “right” and you will sell successfully in the future. Buy
badly and the repercussions can be felt for years.
Interspersed in this Booklet are our 6 top Tips # which will
help you no matter what property you are buying.
Nicholas Russell B.C.L. BA
2TIP # 2
Buy with your head, not
your heart!2. What Special Considerations apply for a On-Line
Purchaser?
The BEST advice that I can give to a Bidder is to ensure
that he/she meets with or consults with his/her Solicitor
before bidding at an On-Line Auction. At O’Shea Russell
Solicitors, we are very pleased to offer a FREE Pre-
Auction Legal Report Service.
Because of the way On-Line Auctions are conducted and
the fact that a successful Buyer is Contractually bound on-
line on the day of the Auction, it is very unwise not to
consult your Solicitor before you bid. The early
involvement of your Solicitor will remove many
impediments to bidding with confidence. It pays
dividends to take this simple precaution.
The following are just some of the important issues to be
considered and addressed by you in consultation with your
Solicitor before you bid:
3A. TITLE
It is imperative that Property Title is investigated
before you bid as post-Contract is far too late to raise
issues.
For a house buyer he/she is buying not just a
property but also a “Title”. The importance of
acquiring good title cannot be over emphasised. It is
important that Freehold Title is acquired or, at the
very least, a long Leasehold Title equivalent to
Freehold and that this title is unencumbered.
To be confident that you are bidding for a good Title,
you need a Conveyancing Solicitor.
4B. BOUNDARIES
Problems with boundaries frequently arise. The Title
Map may not correspond with the physical
boundaries of the property. Bidding on a property
where the boundaries are wrong can have serious
consequences.
You might understandably ask how boundary issues
can arise. This can arise in any numbers of ways
including errors in the preparation of the original
property map, deviations from the property map on
the erection of physical boundaries
(walls/fences/hedges) or changes in boundaries over
the years. Simply stated, you can only sell what is
included on your title map and anything beyond that
requires a rectification process which can be simple
or complex depending on the circumstances.
5C. PLANNING PERMISSION/BUILDING REGULATIONS
It is not at all unusual to find issues of non-
compliance on the original house construction or,
indeed, more often, with subsequent construction of
extensions or garages. Domestic garages that do
not come within exemption limits are sometimes
constructed without Planning Permission or
compliance with Building Regulations.
Similarly, Conservatories are a notorious area of
difficulty and Planning Permission is required where
these are either to the front or side of the property or
where they are to the rere but exceed exempt floor
area size. Sometimes encountered is a situation
where, on the original construction of the house,
there is an afterthought to add a Conservatory and
this is built at the same time to the rere of the house.
Because the Conservatory is below exempt size it is
presumed in those circumstances that Planning
Permission is not required. However, as the
Conservatory is built at the same time as the main
construction it constitutes a deviation from the
Planning Permission and the position is not that
simple.
6Another issue that arises far too often relates to the
non-completion of boundaries and entrances.
Properties are generally sold at On-line Auctions on
an “as is” basis. It is imperative that these issues of
non-compliance are identified before you bid.
Before bidding at an On-Line Auction, it is imperative
that your Solicitor and Surveyor both review the
Planning and all compliance documentation.
7D. SEPTIC TANKS/SOAKAGE AREA
The positioning of these installations by reference to
the house itself and the water supply is important and
needs to be checked. A difficulty can also arise
where a septic tank and/or soakage area or private
water supply are not located on the Sale Property.
One of the first things your Surveyor will check out
before you bid is that the septic tank or water
treatment system complies with the Planning
Permission. It is not at all unusual to see Certificates
of Compliance issue historically for properties only to
find that there are residual issues around the
construction of the septic tank/percolation area. It is
vital that this is checked.
The location of the septic tank/soakage area and
proximity to the house and water supply are also very
important issues. If either the septic tank or
percolation area are outside the physical boundaries
of the property, you need to ensure that there is
proper legal authority in place (Wayleave) prior to
bidding. A Conveyancing Solicitor will sometimes
come across situations where a neighbour facilitates
8a temporary arrangement in relation to a soakage
area which is never intended to be permanent and, if
a property is purchased under these circumstances
without rectification, this can lead to issues including
an inability to actually occupy the property purchased
because of the unavailability of a proper sewage
facility.
9E. ACCESS ISSUES
With the introduction of the Land and Conveyancing
Law Reform Act 2009, the issue of Prescriptive
Rights of Way has become a difficult one and all
Buyer’s Solicitors and, indeed, Lenders will insist that
these rights are formalised and registered.
Where dealing with houses in Housing Estates the
issue tends to be more around the completion of the
Estate Roads and Services, the taking of those
Estate Roads and Services in charge and the
responsibility for the maintenance of these (often in
circumstances where a Developer has ceased
trading).
Generally speaking, access will be straight forward if
it is immediately from a public road (i.e. a road that is
in charge of the Local Authority). In all other cases
the position has to be clearly ascertained before you
bid on the property. If access is by way of a Right of
Way, your Conveyancing Solicitor, in a pre Auction
10Review, will establish if the paperwork is available to
show that there is a legal right of way.
11F. BANK CONSENT (NEGATIVE EQUITY SALES)
A feature of the Market we are currently working in is
that a considerate number of “Bank Sales” are
coming onto the Market. Very often, these will be
sold by On-Line Auction. On occasion the Owner is
selling in ‘Negative Equity’ circumstances but with
Bank Agreement that the Sale may proceed for a
figure less than the sum owed to the Bank.
Evidence of Lender Consent to Sale is very important
in such cases.
If Bank Consent for Sale is required it is essential
that your Conveyancing Solicitor ascertains if this is
actually available before you bid. Where it is the
Bank itself or a Receiver that is selling this is
generally not an issue but, in a private sale of a
property that is mortgaged, this issue needs to be
clarified.
The acquiring of a Bank /Lender Consent to Sale can
be a very protracted process.
12G. LEGAL BURDENS ON TITLE
The buyer must buy unencumbered title and,
accordingly, any burdens affecting the property must
be addressed at an early date.
When we speak of Legal Burdens we are talking
about rights in favour of Third Parties affecting the
property in sale which would include rights of way,
rights to the passage of conduit pipes, rights of
support etc.
13H. BUYING IN AN UNFINISHED AND/OR UNMANAGED
ESTATE
Many such properties come to the Market as a result
of the continuing fallout to the Recession of the mid
2008. We are speaking in terms of the sale of
houses in unfinished Estates where roads and
services have not been taken in charge by the Local
Authority and, very often, where the Developer has
ceased to trade. Further, there can be concerns as
to the value of any INDEMNITY (i.e. promise to
maintain roads and services) in respect of those
roads and services from a Developer who continues
to trade.
When acting for a Purchaser of a house in a
conventional Housing Estate, one of the first
questions a Solicitor will ask is whether the Estate’s
roads, footpaths and general services are in
charge. What does the expression ‘in charge’
mean? It refers to a situation where a Local Authority
(Council) has taken over the common areas in a
housing development and is looking after these.
14There are a number of possibilities with respect to
Estate Roads and Services:-
(a) An Estate may be in charge of the Council so
that there is no issue around the future
maintenance of the roads and services.
(b) Occasionally, title to the Common Areas may
have been passed to a Management Company
whose Members will consist of the House
Owners. This model would be unusual in the
context of a Conventional Housing Estate with
the exception, perhaps, of Estates consisting
primarily of Holiday Homes. Where this has
occurred, however, there is generally no issue
provided the Residents ensure that the
Management Company’s affairs are conducted
properly with Annual Service fees charged and
collected and a Sinking Fund accumulated.
There can, of course, be issues if the
Management Company is ‘defunct’.
15(c) The Builder/Developer may be tasked with
maintaining the Common Areas in the Estate
and may be successfully doing so. Where the
Builder/Developer is continuing to maintain, the
Indemnity which would have been given to each
house buyer by the Builder/Developer providing
for maintenance until taken in charge will
generally provide ongoing assurance to a
Buyer. However, a Solicitor for a Buyer will
seek to test the value, strength and
enforceability of that Indemnity.
(d) The Builder/Developer tasked with maintaining
the Commons Areas may no longer be able to
meet its obligations because it has ceased
trading or is in financially straitened
circumstances.
The real concern is where the Builder/Developer
is no longer active and the situation is
somewhat “in limbo”. The starting point when
addressing this question is the Planning
Permission for an Estate. Generally such a
16Planning Permission will envisage that the
Council will ultimately take the Estate in Charge
when the Permission has been fully complied
with. The Permission will generally provide for
the payment of a Cash Bond or production of an
Insurance Bond by a Developer which can
ultimately be applied by the Council to finish out
and take over the Common Areas in an Estate
where a Developer fails to do so.
Where the Bond is an Insurance Bond, it can
“run out” or not be renewed so that there is no
cache of money available to the Council from
the defaulting Developer for the undertaking of
these works.
The fully compliant model would see a
Developer produce the Bond, finalise all works,
give an Indemnity to House Buyers to maintain
the Common Areas until taken in charge by the
Local Authority, have the Estate taken over by
the Council and have its Bond released.
17It is where the Developer fails to meet its
obligations in this regard and can no longer do
so that problems arise. In those circumstances,
the Indemnity provided by the Developer to
House Buyers is generally worthless and the
Council will resist taking the Estate in charge,
particularly where the Estate is unfinished. The
Council will often be concerned not to take on
the financial obligations inherent in having the
Estate in Charge and will be particularly
concerned if there is not a subsisting Bond that
it can avail of.
In relation to finished Estates, relief is provided
to under Section 180 of the Planning and
Development Act 2000 which provides that,
where the Common Areas are completed to the
satisfaction of the Council (and the Council
cannot act unreasonably in this regard), then, on
Application by the Developer or by the majority
of the owners of houses in an Estate, then the
Council must initiate the taking in charge
process.
18Section 180 was amended by Section 59 of the
Planning and Development Act 2010 which now
provides that, on application of the majority of
house owners in circumstances where an Estate
is not completed to the satisfaction of the
Council and either enforcement proceedings
have not been brought by the Council within
seven years of the expiration of the Planning
Permission or the Council is of the opinion that
such Proceedings would not result in the
satisfactory completion of the development by
the Developer, then the Authority MAY AT ITS
ABSOLUTE DISCRETION initiate the process
of taking in charge.
This leaves matters on a very unsatisfactory
footing. Often Buyers will be faced with a
“commercial decision” as to whether or not to
proceed with a purchase. Where borrowing to
buy, the Purchaser’s Lending Institution will
need to be consulted pre-contract and it too will
make an assessment as to what it will accept by
19way of its Security on whether it is prepared to
advance monies at all with respect to the
property.
20I. BUYING FROM A RECEIVER/BANK
The importance of having the Contract, Title and
Regulatory Compliance checked prior to bidding
cannot be over emphasised in any circumstance
where you are hoping to purchase at an On-Line
Auction. When the Seller is a Bank or Receiver, the
challenges facing a Bidder are particularly onerous.
It is essential that Buyers understand from the outset
that purchasing from a Bank or Receiver on line puts
a much greater onus on a Purchaser than a
Purchase from a Private Owner.
There is a completely new vocabulary associated
with these transactions. Words and phrases such as
“distressed property”, “liquidator”, “receiver”, “co-
operative owner”, “non- cooperative owner”,
“restricted warranties” etc. will baffle most bidders
and it is essential that the process is both explained
to and demystified for those bidders pre-Auction.
21A bidder needs to appreciate from the outset that
there is a requirement for a Bidder, pre-Auction, to
have his/her own Engineer survey.
A significant factor in all Bank Sales is whether an
Owner is co-operating with the process or not and a
bidder should make some attempt to establish the
position at an early date. Where the Owner is fully
cooperative it is far more likely that a purchase
transaction will run relatively smoothly. When this
cooperation is not forthcoming, significant challenges
arise. Typical of the latter transaction are additional
expense for a bidder in having various issues
investigated before bidding. This, of course, can see
a bidder incurring expense before an Auction without
any guarantee of securing the Property he/she
intends to bid on.
Banks/Receivers generally have limited knowledge
only of a Sale property and restricted access to
documentation. The Bank/Receiver will be reluctant
to incur additional expense in selling a property
where the Bank’s perception may well be that, to do
22so, would be throwing “good money after bad”. In
that context, the Bank/Receiver will look to exclude
many of the Conditions contained in the standard
Law Society Sale Contract which are intended to
protect Buyers.
Typical of the type of issues that arise in these
transactions include:-
o The fact that the property may be unfinished.
o Difficulties with utility connections to the
property.
o Significant issues around the completion of
Estate roadways and common areas.
o Issues of non-compliance with Planning Acts
and Building Regulations.
o Non-payment of monies to the Planning
Authority.
o The expiry of the Bond for completion of Estate
roads etc.
o Lack of clarity around Third Party rights.
23o Concerns about the residual term, if any, on
Home Bond/Premier Bond.
24J. BUYING A HOUSE OFF THE PLANS
While generally such sales have not been the subject of
On-Line Auctions, the changes that have come about as a
result of the Covid 19 Crisis may see the emergence of
on-line Auctions for such Properties.
Buying “off the Plans” presents an entirely different set of
challenges. Buying “off the Plans” means Purchasing a
Property which has not yet been built. You are buying on
the basis of the Developer’s Plans and Specifications for
the property and Development. A certain amount of
imagination is required though, most Developers will build
a Show House early in the process as a tangible example
of what your house will look like when constructed.
Some of the potential issues to bear in mind when
purchasing a property “off the plans” are: -
• Without seeing the finished article, the Buyer has to
rely on the Developer to build according to the plans.
A Developer usually contracts with the Buyer to build
a property in accordance with the specifications
provided and in a good and workmanlike manner
25and in accordance with all Planning Permissions,
Building Regulations, etc. It is, however, also known
for Developers to retain the right to make alterations
to boundaries etc, although this should not affect the
overall value of a property.
• There will always will be uncertainty as to when the
property will be finished. The Buyer has to rely on
the Developer to build the property on time. If taking
up a Mortgage on the property, the Buyer should
ensure that his/her Mortgage Offer does not expire
before the projected completion of the construction
works.
• If the Housing Market declines, the finished house
may be worth less than the Buyer has agreed to pay.
A Lender may not lend as much as was originally
offered and the loan to value ratio could be an issue.
This is a matter that needs to be discussed with your
Solicitor.
• If the Developer becomes insolvent after the Buyer
has put down a deposit, the deposit may be at risk
26though, generally, there is Homebound or Premier
Bond Deposit cover. Even where there is this cover,
it can take some time for the Buyer to reclaim the
deposit.
• A Buyer should consider what he/she would do if
his/her own circumstances change before the
property is finished e.g. Redundancy, Illness etc.
• Employing an Independent “Snagging Architect/
Engineer” to inspect the property prior to completion
of the transaction is essential. The Contract itself can
force a Purchaser to complete even if there are minor
issues which have not been addressed. However,
early snagging can help avoid this eventuality.
• A Buyer should not assume that he/she will able to
“sell on” the property while under Contract and make
a profit. Most Developers now add Clauses to ensure
that it is the Contracting Party alone who must
complete the Purchase.
27• On a positive note, as the Property would not have
been built at the time the Buyer commits to purchase
it, a Developer may allow the Buyer to have a say in
the fixtures and fittings in the property such as
bathroom fittings, fitted kitchen, tiling etc. A Builder
may also agree “extras” if the Buyer wants a
particular interior finish.
• If purchasing in a large development, a Buyer should
consider which Phase the property is in. If a
property is in an early phase of development, the
Buyer should be aware that Building works may well
continue in the vicinity of the property for quite some
time after completion of the Purchase.
• If Purchasing a property from a Developer who is
registered with Home Bond or Premier Bond, some
protection is provided.
28K. ARE THE CONTENTS INCLUDED?
It is important to understand that if this is a sale by
Receiver/Lender, the latter is NOT in a position to sell
the fitting and contents in the property. These remain
the property of the original Borrower. They may pass
by default but the Owner would be entitled to remove.
Generally, in these situations, the Borrower will have
abandoned.
29L. VACANT POSSESSION
If there is a Tenant or occupiers of the Property, a
selling Receiver/Bank will not provide Vacant
Possession on the conclusion of the Sale. Neither
will they generally be in a position to provide any
information around the terms or duration of
occupation.
Extreme caution needs to be taken if the property is
occupied. At a minimum, a discussion should be had
with the occupier before bidding. If a tenant, the
tenant may have established rights that cannot be
over-ridden.
Where you buy with a sitting tenant, you take on the
added expense of the obligation to refund (out of own
funds) to the tenant his/her deposit whenever he/she
vacates.
Also, while Vacant Possession entitles a Buyer to a
fully cleared and cleaned Property, on a sale by
Receiver/Bank this clearing/cleaning is not
undertaken by the Seller and the successful Bidder
has the cost of dealing with post-purchase.
30M. NOTICES/PROTECTED STRUCTURES
With older buildings, they can be listed or the subject
of a Protection Order. Where this applies, there can
be significant restrictions on changes, development
and use. Again, a matter for the bidder’s
Architect/Engineer/Surveyor to check out in advance
of the Auction. There are other notices that can be
served with respect to a Property and, once again,
these are matters that the Bidders
Architect/Engineer/Surveyor would need to check out
pre-Auction.
31N. MANAGEMENT COMPANIES
Where the Sale Property is a unit in a larger block of
units it is necessary to establish the position with
respect to a Management Company. Typical of such
units is that there are Common Areas under the care
of a Management Company and that Management
Agents are appointed.
Normally, on the Purchase of a Management Unit
such as this, the Contract includes a detailed
Management Company Information Pack which is a
“mine of information”. Very often, where sales are
On-Line by a Bank/Receiver, this Information Pack is
not provided which is always a concern.
Where provided, such Information Pack include full
sets of Accounts, details of the Sinking Fund and
Minutes of Company Meetings that can give a
valuable insight into issues (if any) with the
management of the Development.
What you could do in the absence of such a Pack in
an effort to get some little insight, is to ask the
32Companies Office (CRO) for a copy of the last
Accounts filed for the Management Company,
33TIP # 3
Make SURE YOU HAVE
THE PROPERTY
SURVEYED BEFORE
YOU BID3. If you are non-Resident but bidding on-line on an
Irish Property: Do you face additional challenges?
As in all property transactions, it is far better to speak with
your Solicitor at an early date in the transaction so as to
avoid unforeseen problems.
All Property transactions can be stressful particularly for
Non-Residents who face additional challenges. We have
helped many non-resident Clients to buy new build and
second hand houses throughout Ireland and guarantee a
simple and stress-free purchase process.
We appreciate the specific needs of Non-Resident
Purchasers and have a tailored service that meets those
needs. Our service includes a number of ‘extras’
including:-
34• Putting Powers of Attorney in place where necessary
to simplify transactions.
• Securing the temporary PPS Number required for
Non-Residents to purchase.
• Easy communication via e-mail, zoom, skype or by
way of the Clients’ preferred method of
communication.
• Arranging for a Comprehensive Property Survey.
• Tax Advice.
• Putting Letting Agreements in place where Non-
Resident Clients are seeking to establish a rental
income stream.
We provide a transparent, fixed fee quote at the outset of
all transactions.
All Property Purchase transactions are dealt with
personally by Nicholas Russell who is a Partner in the
Firm of O’Shea Russell Solicitors.
35TIP # 4 PRIORITISE CLEAR COMMUNICATION
4. The Importance of Communicating
“Good Communication is the bridge between
confusion and clarity”
The “Game” of Property Purchase.
A Colleague of mine with a passion for sport recently
suggested that Buying a House is a Team Effort not unlike
that evident in a Soccer Team. She surmised that the
objective for a House Buyer should be to have a
Premiership Squad to achieve the best result!
Initially, I was amused by the analogy but then set about
testing the hypothesis and seeing how a person might line
out his/her team. And do you know what? She was right!
The ‘Striking Partnership’ consists, of course, of the
Buyers. The ‘Striking Partnership’s objective’ is to get the
ball ‘across the line’ and to avoid scoring an “own goal”!
It’s how (as a bidder) you select and organise your team
around that “striking” formation that will ultimately decide
how the team performs.
36Directly behind this attacking formation is the famous
‘Diamond’ consisting, in the case of House Purchase, of
the Buyers’ Solicitor, Architect/Surveyor, Insurance Broker
and Sales Agent. While the Sales Agent is primarily the
Agent of the Seller, he/she could also be classified as an
“on-loan” player for the Buyer as he/she is the first line of
information in relation to the property being purchased.
The Insurance Broker (in a Sweeper Role) plays the part
of helping you to “brush up” on your Insurance
requirements. The main supports behind you are the
Solicitor and Architect/Surveyor who are your “wingmen”.
Your Lender is your power player that is hard to control
but can occasionally show flashers of genius!
Then, of course, there’s the backline formation typified by
hard work, sweat and sometimes tears! Family and friends
fill this role in providing practical and moral support. The
best Defensive line for this task tends to have a ‘fluid
formation’ …. Water, cleaning fluids, power hoses etc!
37Your goalie is the last line of defence for your ‘sanity’ as
you go through the process of buying your house. This is
the person you turn to when you need a safe pair of hands
and a confidante. Usually a cherished Family Member or
friend, this individual will rarely fumble the ball and is the
tower of strength that any team needs.
And, of course, as Player Manager you don’t need voices
from the side-line, though a wet sponge is always a useful
tool in your arsenal if only to clean the windows of your
new house. What you do need is effective and immediate
communication from and among all of your players……
and, no ‘Prima Donnas’ of course!
Some final ‘Team/Game’ TIPS for Bidding On Line:-
• Recognise the importance of the game.
• Assess your Team.
• Be a Thinking Player.
• Develop an action plan.
• Commit to Good Preparation.
• Screen out Distractions.
• Keep everything in perspective.
38• Develop powerful and positive visual messages
around the Process and Visualise the desired result.
• Concentrate.
• Set realistic goals.
• Manage anxiety.
• Create a Communication Network.
39TIP # 5 The Day you buy is the day you sell (talk to a Conveyancing Solicitor…. before you bid).
5. What happens for you as a Purchaser once your On-Line
Purchase Contract has been executed.
A different dimension to purchase on line is that your
Agent signs electronically and, once your bid is accepted,
you are immediately bound to the signed Contract. It is
then far too late to undertake any pre-Contract enquiries.
You have now bought what is on offer “warts and all”. If
you have undergone the recommended Pre Auction
Procedures, recommended by us the risk of buying a “pig
in a poke” has been removed.
You will have already paid down a booking deposit in
order to bid at the online auction and will immediately have
to pay the balance of a 10% deposit once your bid is
accepted.
The executed Contract is then sent to your Conveyancing
Solicitor.
40Your On-Line Offer you have made on a property has
been accepted and you are now bound by contract
entered into on-line, what next?
Before the property is legally yours there are still several
steps to go through in your property transaction:
1. Liaise with your Conveyancing Solicitor who will
finish out the Legal work on the transaction for
you.
2. Comply with any Money Laundering KYC
provisions
3. Work to the Completion Date
4. Complete
5. Pick up keys
6. Move in!
411. Liaisewith your Conveyancing Solicitor who will
finish out the Legal work on the transaction for you.
Your Conveyancing Solicitor will be experienced in
bringing transactions from Contract to Completion in a
successful manner with the minimum of fuss and will be
happy to provide ongoing support to you during that
process.
2. Comply with any Money Laundering KYC provisions
You will be asked by both your own Conveyancing
Solicitor and, indeed, by the Vendor (generally) following
an On-line Auction to provide a copy photo ID and a copy
of a current Utility Bill with evidence of your PPS Number.
When the On-Line sale is by a Bank or a Receiver you
may also be asked to sign a document to confirm that you
are not connected with the Owner of the distressed
property.
423. Work to the Completion Date
The Contract which you have already committed to on line
will give you a Completion Date. Oddly enough, while the
Vendor can insist on you completing on this date (or of
running the risk of interest charges and ultimate forfeiture
of your deposit) the online Contract will generally provide
protection for the Vendor where the delay is at the
Vendor’s end.
4. Complete
Your monies are paid over to the Vendor’s Solicitors by
your Conveyancing Solicitor and ownership of the property
is transferred from the Vendor to you.
435. Pick up keys
Following completion, you can now pick up the keys to
your new home from the Vendor’s Estate Agent. On
occasion, the Sale Contract, where the sale is by a Bank
or Receiver, will actually provide that no keys are being
made available for the property. In those circumstances, it
is imperative that, immediately following completion, you
employ a locksmith to change the locks on the property
and if, you are buying with a sitting tenant, that the tenant
is given a new key.
446. Move In
It is important to understand that if you are buying with a
sitting tenant you buy subject to all of the statutory rights
of that tenant and you cannot simply terminate the tenancy
at your discretion. There are strict rules around this.
45TIP # 6 UNDERSTAND THE FULL COSTS ASSOCIATED WITH PURCHASE
REQUESTING A QUOTE
To request a quote, please email us at
nicholas@oshearussell.ie or visit our website
www.oshearussell.ie .
Our Quote will take the following format:
1. Our service to you
Duty of care
• We agree to use care and skill in providing you with a
FREE Pre-Auction Legal Report in respect of Lot
No.____: Property___________, in line with good
professional standards. Nicholas Russell Solicitor
and Partner in the Firm will provide this Service.
• If you are successful in acquiring Lot No. ___ we will
provide Full Conveyancing Services.
46Confidentiality
We will always respect the confidentiality of your affairs
and act in your best interest at all times. If there is
anything you do not understand, please tell us right away
so that we can answer your questions.
2. Data Protection
When you employ us to handle your case, you are giving
us permission to hold information for our records but only
for the duration of the service provided to you.
3. Fees and expenses
• There is NO CHARGE for providing the Pre-Auction
Legal Report.
• If you are the successful Bidder our Fees will be as
indicated hereunder.
FEE QUOTATION:
Profession Fee
vat@ …%
47Outlays
Ellis & Ellis Searches
Commissioner for Oaths
Land Registry Fees
(a) Registration
(b) Folio and Map
NOTE: Stamp Duty is charged by Revenue
at % on the Purchase Price.
Telephone, postages, photocopying
and miscellaneous items
Vat @ ….%
______________
Total
4849
APPENDIX
A
THE BUYER’S CHECKLIST.
(Practical Questions to ask)
The purpose of this Checklist is to encourage Buyers to keep their
eyes and ears open when viewing and to know the questions to
ask of the Sales Agent.
We have structured the Checklist under separate general headings
to help familiarise you in a logical order with the issues that can
arise and the questions that may need to be asked.
It is always best to ask any questions of the Sales Agent in person
rather than by phone or e-mail and, ideally, to do so during the
course of the viewing itself.
AND REMEMBER, try not to see the house as a home when
viewing. It is not easy and it can be a challenge to curb your
enthusiasm. On initial inspection, try to see the house simply as a
building that you are inspecting. Don’t let your heart rule your
head!
A1THE PHYSICAL PREMISES
Look and see …..
- Are the boundaries solid and intact?
- Are there cracks or other blemishes that
require further investigation?
- Be imaginative and visualise the house without
its furnishings. Will there be space for your
needs? Don’t be shy about bringing a measuring
tape with you.
- Watch for Damp Patches and evidence of
recent painting that could be concealing
something. Use your ‘nose’ and ears as
well as your eyes.
- Make a note of the fixtures and fittings that
are included in the sale.
- Are Seasonal changes (also day versus night)
likely to impact on the comfort of property?
A2- Is the property layout such as would allow for
further expansion?
- Bring your compass and check out which way
the house is facing.
- Check if windows and doors are a snug fit and
open easily.
- Check that there are enough power points.
- Check the BROADBAND signal on your phone.
- Check external door locks. Ideally, your Insurance
Company will want five lever mortice deadlocks.
- Don’t be shy about flipping light switches, running taps
and flushing toilets!
- Lift and look under mats and rugs particularly
if dealing with wooden floors.
- Look over the fence. How are
the adjoining properties maintained?
A3- View without background noise (radio/tv etc)
as you will want to audibly check the level
of sound proofing.
Questions for Sales Agent …..
- Has the Seller had the property surveyed
in advance of sale?
- Has any previous sale fallen through as
a result of survey issues?
- Has the map of the property been checked
to see that boundaries are correct on map?
- Who owns the boundary fences and who
has to maintain them?
- Has the Sales Agent a written Schedule
of fixtures, fittings and contents included
in the sale?
- What is the BER Rating on the property?
- Does he/she mind if you take some photos
A4on your mobile phone?
- Ask if there is any issue with Broadband
in the area.
- What are the general area and nearby amenities like?
- How many viewings have there been?
- Are there offers on the property?
- Why are the Vendors moving and are they
committed to selling?
- Is there a ‘chain’ i.e. Are the Vendors
buying another house so that the sale of
the current house is linked to them purchasing
a replacement one?
- Ask in advance of your viewing that the
Central Heating is “on” so that you can check
the radiators.
- If an older building, ask the Sales Agent if it is “Listed” or the
subject of a Protection Order.
A5- If not evident, ask the Sales Agent to point out
or confirm:
- Location of main stopcock (water)
- Positioning of Electricity Meter
- Bin collection routine
LOCATION
Look and see…..
- Is there a nearby body of water which
might suggest a history of or potential
for flooding?
- What other buildings/development are
nearby and likely to impact negatively on
the property?
- Is there any seasonal actively (eg. slurry spreading)
that may impact on amenity value of property
Questions for Sales Agent…..
- If there is a nearby body of water, has the property
A6ever flooded?
- Is he/she aware of any forthcoming development
in the area?
(your surveyor can check this out independently)
- Is there a history of disharmony between the
vendors and a neighbour(s)?
- If there are existing green/amenity areas
nearby, is there a prospect of others building
on these?
SERVICES TO PREMISES
Look and See ….
- What the water source to the property is
(if not public mains supply, water testing
is advised)
- Is the site well drained?
- If there is a septic tank? Have its location
pointed out to you.
A7- Is the property accessed by a public or
private roadway?
Questions to Sales Agent …..
- How is water supplied? If by private supply,
when was water quality last checked?
- When was the septic tank last serviced?
- When was the boiler for the heating system
last serviced?
- If the access road is private, is there
documentation in place in respect of the
Right of Way over that roadway.
BURDENS
Look and see…..
- If there is anything to suggest that Third Parties
have a right to cross over the property
- Is there any evidence of conduits, pipes etc.
A8crossing the property into another property?
Questions for Sales Agent….
- Does he/she know if any other party has rights
of Way or otherwise over the property?
- Is there any history of disputes in relation to any
such issues?
AVAILABLE FOR OCCUPATION
Look and See….
- Is the house currently occupied?
- What will the house look like when empty?
- If there is anything that a person vacating
might abandon behind? (e.g. building refuse,
accumulated rubbish etc.). If so make a note
of this as you will want to ensure that the
house is fully cleared out if you buy.
A9Questions for Sales Agent …….
- If there is a current Owner in occupation or a
Tenant, what is a realistic timescale for them
to vacate in the event of a sale?
- Ask the Sales Agent to confirm that the property
will be fully “cleared out” in advance of completion
of a purchase.
ANY LEGAL OBSTACLES TO PROCEEDING
Ask the Sales Agent ……
- Is Bank Consent needed for the Sale or is it a
Bank Sale?
- Is there any other Legal Impediment to a sale?
- Has the Vendor’s Solicitor confirmed to the Sales
Agent that he/she can issue a Contract immediately
in the event that the house sells?
A10PLANNING
Look and See …
- Is there evidence of construction beyond the
initial house construction e.g. extensions, garage,
porch, conservatory etc.?
- Is there any evidence that the original house was
modified (eg. addition of dormer)?
Ask the Sales Agent…..
- Has the Vendor’s Solicitor confirmed that all
Planning Issues are in order?
- If there are dormer bedrooms, are these covered
by the Planning Permission?
- Was then garage built under the original
Planning?
A11- If there is a conservatory to the front or
side. Was this part of the original build or,
if subsequently built, is there Planning Permission?
A parting question for the Sales Agent should be:-
“Is there anything you would want to know
about the house if you were buying”?
If you like the property, make a call to your Insurance Company to
ensure that there will be no issue in taking out House Insurance. If
the Insurers have a specific query or requirement, your Surveyor
can make further enquiry into this if you decide to proceed to
formal survey.
Be Guided by the Principle: “The Day you buy is the day you sell”.
A12APPENDIX
B
GET YOUR QUOTE
For Free initial Advices and quote contact us on Tel: 059
9724106 or nicholas@oshearussell.ie. We also provide a
completely FREE Pre-Auction Legal Report
Contact: Nicholas Russell
O’Shea Russell Solicitors
Tel: 059:9724106
Email: nicholas@oshearussell.ie
www.oshearussell.ie
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