Most Frequently Asked Questions When Buying a House in Ireland

Buying a house is an exciting but complex process – especially when it comes to the legal side of things. From understanding conveyancing to calculating stamp duty, many buyers are often left scratching their heads about what’s actually involved. This is where having the right solicitor can make all the difference and help keep your house purchase free from unexpected surprises.

Below, we’ll answer some of the most commonly asked questions about buying a home in Ireland. Whether you’re a first-time buyer or moving to a new home, this guide should help explain some of the more common legal queries and help you move ahead with confidence.

What is Conveyancing and How Long Does It Take?

Conveyancing is the legal process of transferring property ownership from the seller to the buyer. It involves legal checks, contract review, and the final transfer of funds. In Ireland, the process typically takes six to twelve weeks, but each property sale can be different and it can be longer if there are delays with mortgage approval, title searches, or other legal issues.

During the conveyancing process, your solicitor will review the legal status of the property and check for any issues which may impact you or the sale. They will also draft and review the contracts and terms of the sale; and will investigate the title and carry out various searches before closing. 

Once approved, your solicitor will arrange for the transfer of funds and ownership between the parties. 

Summary:

• Conveyancing is the legal transfer of property ownership.
• The process usually takes six to twelve weeks but can vary.
• A solicitor ensures the transaction is legally sound.

Why Do I Need a Solicitor When Buying a House?

When buying a house, a solicitor is needed to take care of the legal processes, protect your interests and make sure the sale goes smoothly and complies with Irish property law. Without a solicitor, you could face legal complications, delays or even financial loss. Where there is a mortgage on the property the bank will require the involvement of a solicitor.

What Is the Role of a Solicitor in the Home Buying Process?

A solicitor plays a crucial role in ensuring the legal transfer of property is smooth and secure. They handle all legal aspects of the purchase, from reviewing contracts to registering ownership with the Property Registration Authority. Here’s a brief overview of what a solicitor does during the home buying process:

Legal Checks:
Examines the property title deed to confirm the seller has a legal right to the property. They also carry out legal investigations to ensure there are no issues with the property, such as outstanding mortgages, planning restrictions, that all necessary easements and rights of way are in place and that all planning compliance documentation are in order

Contract Review:
A solicitor will manage the contract portion of the property sale. They will review the contract for sale, ensuring the terms are fair and in the buyer’s best interest. The solicitor will also review the supporting documentation that is furnished with the Contract for Sale, known as the Replies and Objections on Title, which gives a full history of the property and provides various warranties and guarantees by the vendor.

Property Searches:
During the sale process, the solicitor conducts searches to check for issues affecting the property or sale – such as planning searches, petition searches and judgments that may affect ownership. 

Managing Funds
A solicitor will also manage all the financial transactions involved in a house sale. This includes the balance deposit payments, mortgage drawdowns and the final transfer of purchase funds. The auctioneer holds the initial booking deposit. You will also sign all mortgage documentation with the solicitor. The solicitor will then liaise directly with the bank to finalise drawdown of the loan funds.

Transfer of Ownership
Once the sale is complete, the solicitor stamps the deed with the Revenue Commissioners and discharges the stamp duty and then proceeds to register the new ownership with the Property Registration Authority so you are officially listed as the property’s new owner. Once the registration is complete, the title documents are then returned to you, or to the bank if there is a mortgage.

Summary:

• A solicitor ensures the legal aspects of a property purchase are handled correctly.
• They conduct title searches, review contracts, liaise with the bank and manage funds.
• Ownership is registered with the Property Registration Authority after completion.

When Should I Engage a Solicitor During the Home Buying Process?

It’s best to engage a solicitor as early as possible, ideally before making an offer on a property. This ensures you have legal guidance from the start and can avoid potential issues later. A solicitor can review the contract for sale, conduct initial property checks, and flag any legal concerns before you commit.

Once your offer is accepted, the solicitor will handle the conveyancing process, including title searches, contract negotiations, and managing funds. Delaying the appointment of a solicitor can lead to unnecessary delays and complications, especially if issues with the title or legal status of the property arise.

Summary:

• It’s advisable to engage a solicitor before making an offer.
• A solicitor can review the contract and identify potential legal issues early.
• Appointing a solicitor late can cause delays in the buying process.

Do Solicitors Keep Copies of Wills?

Solicitors often keep the original wills for safekeeping, but they are not legally required to do so. If a solicitor drafts a will for a client, they may store the original document or a copy, depending on the client’s preference. 

If a solicitor holds the original will, the executor attends with the solicitor after your death to initiate the probate process. Your executor cannot access your will while you are still alive. However, if you choose not to store the will with your solicitor and it then goes missing or is misplaced, it may cause delays in the probate process or result in your estate being distributed as per the rules of intestacy which may not be in accordance with your wishes. It’s always best to inform family members or the executor where the original document is stored.

Summary:

• Solicitors may keep copies of wills but are not legally required to do so.
• Some firms offer secure storage for original wills.
• Executors should know where the will is kept to avoid delays in probate.

Can the Buyer and Seller Use the Same Solicitor?

In Ireland, a buyer and seller cannot use the same solicitor. This is to prevent a conflict of interest, as the solicitor must act in the best interests of both parties, which can create legal and ethical issues.

Summary:

• The buyer and seller cannot use the same solicitor.
• This prevents conflicts of interest and ensures both parties receive independent legal advice.

Can You Change Solicitors When Buying a House?

Yes, you can change solicitors while buying a house. However, be advised that it may cause delays and additional costs. 

If you’re unhappy with your solicitor’s service, you have the right to switch at any stage of the process. But you will need to settle any outstanding fees before your case can be transferred to a new solicitor.

The new solicitor will request your file from the previous one, which may take time. It’s important to consider whether switching solicitors is necessary or if the issues can be resolved before making a decision. In some cases, discussing your concerns with your current solicitor can lead to a better outcome.

Summary:

• You can change solicitors during the home-buying process.
• There may be delays and additional costs involved.
• Outstanding fees must be settled before transferring your case.

Do Solicitors Organise a House Survey?

Solicitors do not organise house surveys but they strongly recommend getting one before purchasing any property. A survey helps identify structural issues, potential planning issues in relation to extensions, boundary disputes or other defects that could affect the value or safety of the property.

Buyers are responsible for arranging the survey and this is usually carried out by a chartered surveyor or an engineer. Your solicitor can advise on the importance of a survey and may be able to recommend a trusted professional but the responsibility for arranging a survey lies with the buyer.

Summary:

• Solicitors do not arrange house surveys but recommend them.
• A survey identifies structural problems and legal issues with the property.
• Buyers must arrange and pay for the survey themselves.

What Is Stamp Duty and How Is It Calculated?

Stamp duty is a tax paid to Revenue when buying a property in Ireland. The amount depends on the property’s purchase price. For residential properties, the current rates are:

• 1% on properties up to €1 million
• 2% on any property above €1 million and up to €1.5 million
• 6% on any consideration over €1.5 million
• 7.5% on any land in excess of one acre attached to the dwelling house

For example, if you buy a house for €500,000, the stamp duty would be €5,000 (1%). If the property costs €1.2 million, the first €1 million is taxed at 1% (€10,000), and the remaining €200,000 is taxed at 2% (€4,000), bringing the total to €14,000.

The is a small reduction in stamp duty on new builds as the VAT charged by the builder can deducted from the calculations. Your solicitor will advise you on the exact figure at the outset of the transaction.

Stamp duty must be paid within 44 days of completing the purchase. Your solicitor will handle the submission to Revenue and ensure payment is made on time to avoid penalties. You will need to lodge the stamp duty with the solicitor before the purchase completes and you receive the keys.

Summary:

• Stamp duty is a tax on property purchases in Ireland.
• Residential rates are 1% on properties up to €1 million; 2% on amounts up to €1.5 million; and 6% above €1.5 million, and 7.5% on the value of all land in excess of one acre attached to the dwelling house.
• Payment must be made to Revenue within 44 days of completion. You will need to lodge the stamp duty with the solicitor before the purchase completes and you receive the keys.

Buying a house is one of the biggest financial decisions you’ll make, and understanding the legal process can help avoid costly mistakes. Your solicitor plays an important role in guiding you through the process, from conveyancing to handling contracts and managing stamp duty payments. If you are in the process of buying or selling a home, get in touch today and one of the expert conveyancing solicitors at Patrick J Farrell and Company will help guide you through the process. 

Key Takeaways:

• Conveyancing typically takes six to twelve weeks, and a solicitor ensures the legal transfer is secure.

• Solicitors handle all legal aspects of buying a home, including contract reviews, title searches, mortgage documentation and registering ownership.

• Engage a solicitor early, ideally before making an offer, to avoid delays.

• Buyers and sellers cannot share a solicitor due to conflict-of-interest rules.

• Changing solicitors during the house buying process is possible, but it may lead to delays and additional costs.

• A house survey is the buyer’s responsibility, but a solicitor can advise on its importance.

• The current rates for stamp duty are 1% up to €1 million; 2% on property above €1 million and up to €1.5 million; and 6% on property above €1.5 million, 7.5% on value of land in excess of 1 acres attaching to the dwelling.  Stamp duty must be paid within 44 days of closing. You will need to lodge the stamp duty with the solicitor before the purchase completes and you receive the keys.