If somebody is selling their property how can they avoid running into problems?
As a seller you want to attract a buyer and secure the successful sale of your property. You want the transaction to run as smoothly as possible with minimal delays and minimal costs.
Don’t waste time. As soon as you decide to sell your property consult with your auctioneer and your solicitor so that any potential issues can be identified. The bottom line is act early act and do not wait until you find a buyer to take action.
Does it take time for a seller to retrieve their title document from the Bank?
Where are your title documents? If you have a mortgage then your title documents are held by your lender. It can take up to ten working days to get the title documents released. During this time the transaction cannot progress. It is important to take up your title documents the minute you decide to sell.
What taxes and charges must be paid before a property can be sold?
Once you decide to sell, make sure that you have paid all the relevant property taxes. There are three. The Local Property Tax, The Household Charge and NPPR. You will need to be able to produce proof of payment in the form of a Certificate of Discharge or confirmation that the property is exempt from the charge in the form of a Certificate of Exemption. If you sell your property during 2014, both the 2013 & 2014 local property taxes must be paid in full. If you have opted to pay the 2014 tax by instalments then you will have to make a lump sum payment to discharge the balance. This is all work that you can be doing while trying to find a buyer.
If you have a septic tank then this should have been registered by 1st February 2013. You will not be able to sell your property without producing the Certificate of Registration.
What Planning Documents must I produce?
Have you carried out any development to your property? If you have, you need to be able to produce copies of all planning permissions together with a Certificate of Compliance confirming that the planning permission has been fully complied with. In certain cases, development is exempt from planning permission. Once again you need the relevant paperwork. You will need to produce a Certificate of Exemption.
Is Non Compliance with Planning Permission is a serious issue for a purchaser?
Planning issues can be a deal breaker especially if a purchaser is getting a loan. Non- compliance with planning can impact on the value of the bank’s security. It could result in a purchaser losing their finance. It is vital to contact your solicitor as early as possible so they can advise you on any potential issues.
What information will a purchaser need re the Roads and Services?
Who is responsible for your roads and services? If it is the local authority we will need to get a letter from them confirming the position. There is usually a small fee of €30 – €50. This should be done at the outset.
If you live in a newer estate or apartment building it is possible that the common areas are looked after by a Management Company. A purchaser will require information about the Management Company such as accounts, insurance and details of any service charge levied. You will need to have this information to hand. If you are thinking of selling contact the Management Company immediately to get this information.
Can you tell me about the Multi Unit Development Act?
During the boom, when a developer was selling houses in an estate it was usually agreed that ownership of the common areas would not pass to the Management Company until the last house was sold. Given the current climate this could be never.
In 2011 the Multi Unit Development Act sought to deal with this issue. In the case of existing housing estates all commons areas were to be transferred to the Management Company by 1st October 2011. There are many housing estates around the country where this has not been complied with.
This could have the potential to delay (or lose) a sale. It is vital to contact your solicitor as soon as you decide to sell so that this issue can be identified.
Article
How to sell your Pad – Avoiding the Stumbling Blocks
As a seller you want to be able to sell at the best price and to the best buyer. Here are a few tips on how to make it run as smoothly.
Talk, Talk, Talk – the early bird catches the worm.
Don’t waste time.
As soon as you decide to sell your property talk to your solicitor and auctioneer so that any potential stumbling blocks can be removed.
For example, where are your title documents? If you have a mortgage then your title documents are held by your lender. It can take up to ten working days to get the title documents released. During this time the transaction cannot progress. It is important to take up your title documents the minute you decide to sell.
Tax it, Charge it and Pay up!
Once you decide to sell, make sure that you have paid all the property taxes.
There are three: The Local Property Tax, the Household Charge and NPPR.
You will need to have proof of payment – a Certificate of Discharge or confirmation that the property is exempt from the charge in the form of a Certificate of Exemption.
If you sell your property during 2014, both the 2013 & 2014 local property taxes must be paid in full.
If you have opted to pay the 2014 tax by instalments then you will have to make a lump sum payment to pay the balance.
This is all work that you can be doing while trying to find a buyer.
If you build it they will come!
Have you carried out any development to your property?
If you have, you need to be able to provide the planning permissions with a Certificate of Compliance that the planning permission has been complied with.
In certain cases, development is exempt from planning permission. Once again you need to produce a Certificate of Exemption.
Planning issues can be a deal breaker especially if a purchaser is getting a loan. It could result in a purchaser losing their finance.
If you have a septic tank then this should have been registered by 1st February 2013. You will not be able to sell your property without producing the Certificate of Registration.
Get on the Road and Check your Services!
Who is responsible for your roads and services?
If it is the local authority we will need to get a letter confirming the position. There is usually a small fee of €30 – €50.
If you live in a newer estate or apartment building it is possible that the common areas are looked after by a Management Company.
A purchaser will look information that the Management Company has financially sound accounts, insurance in place and service charge levied.
Contact the Management Company immediately to get this information.
Are You Mud Compliant?
During the boom, when a developer was selling houses in an estate it was usually agreed that ownership of the common areas would not pass to the Management Company until the last house was sold. Given the current climate this could be never.
In 2011 the Multi Unit Development Act came in to deal with this issue.
In an existing housing estates all commons areas were to be transferred to the Management Company by 1st October 2011.
Non-compliance could have the potential to delay (or lose) a sale..
The bottom line is to consult your solicitor early, act early and do not wait until you find a buyer to take action.
