29.03.2019 Home Insurance
It has been a long road; saving a deposit, getting mortgage approval, finding a home andbeating the competition to go sale agreed. But what happens now? While there is a lot of information about:
• How to save a deposit for your home
• How to find the right home for you
There isn’t as much information on what happens once you go sale agreed.
After all of the activity finding the right property and stress of bidding, going sale agreed can sometimes feel like an anti-climax. Everything goes quiet and you may be wondering where to from here? You are not alone. We answer some of your most popular questions on being in sale agreed limbo:
Sale agreed is the first step in buying a house in Ireland. It means the current owner of the property agrees to sell it to you at the price you have offered. The current owner’s estate agent will usually ask you to pay a ‘booking deposit’ of a few thousand euro to show your intention to buy the property and they will remove it from the market. Sale agreed is not legally binding for either party and a booking deposit is refundable until contracts are exchanged.
A buyer can pull out of a house sale until contracts are exchanged. An offer to buy a property i.e. ‘sale agreed’ is not legally binding and you can inform the estate agent that you no longer wish to purchase the property until then. Once contracts have been exchanged a house sale is legally binding.
Although arranging the actual sale of the property will be completed by your solicitor who works with the vendor’s solicitor, you still have some work to do while you are ‘sale agreed’. This period is your opportunity to ensure the house is as expected and is definitely the right property for you. Some suggestions for ensuring this is the case:
Although not legally required, it is worth having a survey of the property completed by a qualified surveyor who can identify any potential structural issues with the property that may not have been obvious from viewing alone.
Take this time to spend time in the property yourself and ensure it is the right one for you. Ensure you didn’t get caught up in the excitement of buying and that you can imagine yourself living here in the medium term. Questions to ask and/or discuss with your partner include:
If the survey or your own evaluation of the property shows up some unexpected repair work you have two options:
They are not legally obliged to reduce the agreed purchase price and you may not be successful in the current sellers market but some will. It is worth asking the question.
No one likes to think about their own mortality but in the event somethingunexpected happens, mortgage protection will ensure any balance on the mortgage is paid. You do not have to take out mortgage protection with the bank or building society providing your mortgage. Shop around for the protection you need at the best price.
Most mortgage providers will insist you have home insurance to cover the cost of rebuilding your home should it be damaged. There are some important things to be aware of when it comes to home insurance:
There are a multitude of factors that impact the length of time it takes to go from sale agreed to sold in Ireland. It is prudent to allow at least three months for this process but be warned it may take much longer. If you are renting a property, do not give notice to your landlord until contracts have been exchanged. Complications with deeds, missing paperwork or unexpected repair work are just some of the many issues that may delay a house sale in Ireland.