In Ireland, the process of buying a property often involves delays and uncertainties. Sellers typically provide a legal pack to the buyer’s legal team, containing crucial documents such as Title Deeds, Land Registry Folio, Planning and Development Information, Building Compliance Certificates, Property Survey, Inspection Reports, and more. This legal pack is meant to ensure transparency and help buyers make informed decisions about their potential property purchase.
The Current Process
The typical procedure has been for solicitors, following their client’s instructions, to prepare contract documents by collecting information from various sources. Additionally, solicitors attempt to assess the quality of technical documentation, such as planning compliance, but this evaluation is often unreliable. Often advising the client to hire an Engineer or Surveyor, or they pass the responsibility to the buyer’s solicitor, leading to delays and uncertainty. This imperfect process is at the root of the problem that the proposed bill seeks to address.
Engineers and Surveyors are better equipped to ensure that documentation is suitable for buyers. They can obtain most of the necessary documents through the same channels as solicitors but also have the expertise to professionally assess their suitability for buyers. This eliminates the need for solicitors to make subjective judgments about document accuracy and validity.
At a minimum, it is advisable to conduct an on-site technical assessment of existing documentation. This can help avoid the common delays that occur when a buyer’s solicitor is dissatisfied with the initial contract documents, reducing stress for both buyers and sellers.
A survey conducted on September 1st, involving 534 agents who are members of IPAV, revealed that the conveyancing process typically takes four months to complete, with 84% of respondents reporting that sales fell through due to delays. The research also indicated that most respondents support the introduction of the Sellers Legal Pack or similar measures to expedite conveyancing.
The “Seller’s Legal Pack for Property Buyers” Bill 2021
The “Seller’s Legal Pack for Property Buyers Bill 2021” is a proposed law aimed at improving the home buying and selling process by requiring the upfront availability of a Seller’s Legal Pack when a property is listed for sale. This pack comprises two main parts: the Contracts of Sale document and ancillary documentation related to the physical property, including:
- Law Society Conditions/Contracts of Sale
- Technical opinions and sign-off documentation related to:
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- Maps and boundaries
- Planning and enforcement
- Building regulations
- Building energy rating
- Wayleaves, services, and other rights and obligations
By specifying the contents of the Seller’s Legal Pack and ensuring its freshness (not more than a year old and no material changes to the building), the quality of documentation provided to buyers upfront will improve.
Primary Goals of the Seller’s Legal Package
The Seller’s Legal Pack aims to achieve several key objectives:
- Minimising the likelihood of property sales falling through, offering more certainty for both buyers and sellers.
- Preventing Unfair Tactics: Curbing practices like gazundering and gazumping that disrupt the buying process.
- Simplifying Procedures: Aligning with public and online property auctions to streamline transactions.
- Ensuring Saleability: Confirming the suitability of properties for listing through pre-sale checks.
- Enhancing Seller Protection: Reducing legal risks for sellers, resulting in a smoother process.
- Accelerating Transactions: Completing most legal formalities upfront to reduce overall transaction time.
Summary
For Home Buyers: Many properties advertised as ‘For Sale’ may currently be unsuitable for purchase due to discrepancies between property documentation and the actual condition of the property or outdated information. Ensuring the correctness of documentation through professional checks by an Engineer/Surveyor and Solicitor before listing the property for sale can prevent buyers from wasting time, money, and energy on such properties.
For Sellers: Sellers have typically provided available documentation within the initial contract documents, relying on the buyer’s solicitor to seek further technical advice if needed. This process starts weeks after the buyer and seller agree to the sale, leading to potential delays and collapsed sales. By allowing the buyer’s solicitor to review and accept documentation before reaching the ‘sale agreed’ stage, the chances of buyers withdrawing are greatly reduced, resulting in a less stressful process for sellers.
Proactive Preparations at MRE
At MRE, we understand the challenges that both property buyers and sellers face. This is why before your property goes on the market, we diligently assess and organise the following essential documents, ensuring that you’ve got your ‘ducks in a row’ as best possible:
Planning Compliance – We review the planning history of the property including all relevant permissions. We provide you the owner an opinion of compliance and will advise if any issues may arise due to planning.
Opinion on Building Regulation – Review of certification provided at construction.
BER Certificate – We ensure you have an up to date BER at hand prior to going on the market. No property can go on the market without a valid Building Energy Rating Certificate.
Land Registry Map – Official map and certificate of identity.
Non-Private Residence Charge –Advisory Report Certificate of discharge or exemption.
By proactively addressing these crucial details, MRE is committed to delivering a hassle-free and efficient selling experience, benefiting both property buyers and sellers. At MRE we welcome the Sellers Legal Pack but rest assured that we don’t just sit on our hands and hope the sale closes smoothly. We review, advise, and help progress the sale with a matter of urgency and our client’s needs in mind.
The contents of this document are intended and provided for information purposes only. Midlands Real Estate has attempted to ensure that the resource is current and accurate but cannot guarantee this. The resource is provided on the basis that persons accessing it undertake responsibility for assessing the relevance and accuracy of its content. Midlands Real Estate does not accept any liability to any person or body for the information (or the use of such information) that is provided in this resource.
