Selling a house made simple
Selling a House Made Simple
Charles M. Schulz
Decorate your home. It gives the illusion that your life is more interesting than it really is.
Selling a House Made Simple
Where to start
Selling your house can be a daunting undertaking. With the right professional help the task can be simplified and result in an efficient and successful transaction.
How do I Sell my House?
There are two ways to sell a house – by private treaty or by auction. A private treaty sale is a private sale, either by the owner or through an estate agent. An auction sale is a public event.
The importance of employing a good estate agent cannot be overstated.The vast majority of private residential houses are sold by private treaty. No matter which method you use it is essential to engage a solicitor early so that he may obtain the deeds to your house and have a contract prepared to issue once the sale has been agreed.
Do You Have a Mortgage?
Most houses these days have mortgages on them. If so you will need to sign a letter of authority to allow Griffin Solicitors to obtain the title deeds from the lending institution to prepare the contract for sale. It is important sign the letter of authority before the property goes Sale Agreed. In that way contracts can be prepared and ready to issue as soon as the property is sold. This will speed up the transaction.
Preparing The Contracts for Sale
As the sellers solicitor, Griffin Solicitors will prepare the contract for sale.
- Title document: We need the title documents to prepare the contract. If they are with a bank then it takes at least two weeks to obtain same.
- Planning: If there are any extensions or garage or attic conversions then a copy of the planning permission and an architects opinion of compliance with planning permission and building regulations will be required. If the extension did not require planning permission, being under 44 square metres and attached to the rear of the house, then an architects certificate of exemption from planning permission and compliance with building regulations will be required.
- Ground Rent: If the ground rent has been bought out then the vesting certificate will be needed.
- Taxes: A property history report showing that Local Property Tax has been paid for the year will be required. This is obtainable on the website. A Clearance or exemption certificates will be required for Household Charge for 2012 and for Non Principal Private Residence are required.
Signing Contracts and Closing
Upon receipt of the sales advice notice Griffins Solicitors will send a contracts together with a copy of the title documents to the buyers solicitor. The buyers solicitor will raise pre-contract queries. Once these have been replied to and the buyer has his loan offer the buyer will sign the conntract and pay in total a 10 per cent contract deposit.
The contract is then returned to Griffin Solicitors who will organise for the seller to sign the contract. Only when one part of the contract is returned to the buyers solilcitors is there a binding contract. There is no simultaneous exchange of contracts unlike in England. The buyers solicitors will then raise a standard questionnaire on title, called Objections and Requisitions together with completion requirements called Requisition 44. Griffin Solicitors will prepare the completion documentation and obtain redemption figures for the existing mortgage from the bank. On completion the seller hands over the completion documentation and keys and the buyer pays the completion monies. Searches are carried out and explained. The transaction then completes.
Prior to completion Griffin Solicitors will furnish you with a cash account setting out all of the payments including solicitors fees, monies paid out on your behalf, LPT, local property tax apportionment and service charge apportionment. The only matter not included in the cash account is the agents fees. These will be deducted the booking deposit and forwarded to Griffin Solicitors after completion.
Griffin Solicitors will pay the Stamp Duty, register your ownership in Land Registry and send the documents to the bank for safe keeping if there is a loan. This takes at least 4 months from the date of completion, and may take a lot longer. We will send you a copy of the Folio once the registration has been completed.
Griffin Solicitors will transfer the balance of the monies to you in accordance with the cash account. You will need to provide us with your bank account details in writing. We will require the following information:
- Name on the account.
- Address of the account.
- Bank name.
- Address of the bank branch.
Capital Gains Tax.
There is currently no Capital Gains Tax payable on the sale of a Principal Private Residence.
If the property is not your Principal Private Residence then Capital Gains Tax at 33% of the uplift in value of the house from when it was bought will be payable to the Revenue Commissioners. If the house was not lived in for the entire period of ownership as a Principal Private Residence then Capital Gains Tax will be paid on a time apportioned basis. The costs of sale being the estate agents and solicitors fees are deductible from the amount of tax to be paid. If the property is being sold for in excess of €500,000 then, whether or not tax is payable, a certificate of clearance from the Revenue Commissioners will be necessary before the sale completes. The necessity for a certificate does slow down the completion of sales.