April 18, 2024

Key Points to Know Before Signing A Sale Agreement in Ireland

A sale agreement or purchase contract or contract for sale, is a legally binding document that sketches the terms and conditions of a property sale between a seller and a buyer.

It is an essential document in a property-acquiring process.

Sale Agreement Pic

Nevertheless, specific details might vary depending on individual agreements and legal advice. It’s always best to consult with a solicitor or legal professional for precise information.

You can contact London property lawyer Oliver Tighe specializing in property law for a free consultation. The Irish-born advocate can advise you about the process and your rights as a buyer.

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Below are some key points you should be aware of before signing a sale agreement in Ireland:

1. Pre-Contract Enquiries

It is sensible to carry out thorough due diligence on the property before signing the sale agreement. This may include checking for planning permissions, building compliance, boundary issues, rights of way, and any outstanding liabilities related to the property.

2. Title Investigation

Verify the title of the property to ensure the seller has the legal right to sell it. If you are busy or unfamiliar with how to conduct a title search and investigation of potential property restrictions or encumbrances, hire a property lawyer.

3. Property Valuation

To make sure that you are paying the property seller a fair price based on market value obtain an independent property valuation.

4. Sale Price and Payment Terms

You must be clear about the –

Agreed-upon sale price

Payment terms, including the deposit amount and the timeline for paying the balance

5. Completion Date

The contract should state the expected completion date when the property will be officially transferred to your name. Ensure this date aligns with your plans and allows enough time for any necessary preparations.

6. Conditions and Contingencies

The contract should outline any conditions that must be met for the sale to proceed. Common contingencies may include obtaining mortgage approval or necessary permits.

7. Fixtures and Fittings

Sale Agreement Image

Determine which fixtures and fittings are included in the sale. This will avoid misunderstandings later on.

8. Stamp Duty

Understand your liability for stamp duty, a tax paid on property transactions. The amount is usually a percentage of the property’s purchase price and varies based on the property value.

9. Survey and Inspection

A professional structural survey and a property inspection will help to identify any potential issues or defects.

10. Contract Deposit

The deposit has to be paid upon signing the sale agreement. So, ensure the deposit amount and the conditions for its refund or forfeiture are clearly stated in the contract.

11. Cooling-Off Period

A short time is given to the seller, which is termed a cooling-off period. Within this short duration, you can withdraw from the contract without incurring substantial penalties.

12. VAT and Other Taxes

If you are buying a recently developed, new property then you will need to consider Value Added Tax (VAT) instead of stamp duty.

13. Exchange of Contracts

Once you and the seller are satisfied with the terms, the signed contracts are exchanged, legally binding to both parties to the sale.

Completion

Sale Agreement

The official transfer of property ownership is done when you pay the remaining balance on an agreed completion date,

Property investment means significant financial commitment. It is sensible to hire an experienced property lawyer, who will navigate you through the entire property transaction. It ensures that your interests are protected.

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