Legal – Sweeney McHugh Solicitors

Do I need a Survey?

Do I need to have a survey of property done?

Buying a property is a significant investment, and it is essential to ensure that you make an informed decision. A property survey is an important step in the buying process, as it can uncover potential problems or defects that may not be visible to the untrained eye. In this article, we’ll explore why a survey is advisable before purchasing a property in Ireland, when to have a survey carried out, and what happens if problems are discovered after the purchase.

Why a survey is advisable?

A property survey is an assessment of the condition of a property carried out by a qualified professional such as an architect, engineer or surveyor. The survey will examine the structural integrity of the property, as well as its condition, including any defects or issues that may need to be addressed. A survey can also identify any potential problems with the property’s heating, plumbing, and electrical systems.

Having a survey carried out can help you make an informed decision about whether or not to proceed with the purchase of a property. If problems or defects are identified during the survey, you can use this information to negotiate the price of the property or to request that the seller address the issues before the sale is completed.

When should I have the survey carried out?

It is advisable to have a survey carried out before you sign a contract to purchase a property. This will give you the opportunity to identify any potential problems before you commit to the sale. It is also worth noting that some surveyors may not be available at short notice, so it is important to book a survey as early as possible in the buying process.

Does a bank valuation not cover these things?

It is important to note that a bank valuation is not the same as a property survey. A bank valuation is an assessment of the value of a property, usually carried out by a valuer appointed by the bank. The valuation is intended to confirm that the property is worth the amount that you are borrowing.

While a bank valuation may identify some issues with a property, it is not a comprehensive assessment of the property’s condition. A survey, on the other hand, is a detailed examination of the property’s condition and can identify potential problems that may need to be addressed.

What happens if problems are discovered after a property is purchased?

The principle of Caveat Emptor (Buyer Beware) applies to property transactions. Therefore if problems are discovered after a property is purchased in most cases, a purchaser will have no recourse against the Vendor. The purchaser would be responsible to rectify any defects or structural issues with the property. The exception to this would be in cases where the Vendor has misled you.

How do I choose a solicitor for my property?

Buying or selling a property is a significant financial transaction that involves a lot of legal documentation and procedures. To ensure a smooth and successful transaction, it’s essential to have a competent and reliable solicitor by your side. A solicitor is a legal professional who can specialise in property law and can guide you through the legalities of buying or selling a property. However, with so many solicitors out there, how do you choose the right one for your needs?

Look for a specialist in property law

The first thing to consider when choosing a solicitor for the purchase or sale of a property is their area of expertise. Not all solicitors specialise in property law, and you want to find someone who has experience in this area. Look for a solicitor who has a track record of handling property transactions and has a good understanding of property law. The solicitor who recently represented a family member defending a road traffic matter might not always be the best deal with property matters

2. Consider their experience

Experience is an important factor to consider when choosing a solicitor for the purchase or sale of a property. Look for a solicitor who has handled similar transactions in the past and has experience dealing with the specific type of property you’re buying or selling. A solicitor with a proven track record can provide you with valuable guidance and advice throughout the transaction

3. Look for someone who communicates well

Good communication is essential when working with a solicitor for the purchase or sale of a property. You want to find someone who is responsive, proactive, and keeps you informed throughout the process. Look for a solicitor who communicates clearly and concisely and is available to answer your questions and concerns.

4. Consider their fees

Another important factor to consider when choosing a solicitor for the purchase or sale of a property is their fees. Solicitors’ fees can vary widely, and it’s important to understand what you’ll be paying for and how much it will cost. Look for a solicitor who is transparent about their fees and provides you with a clear breakdown of the costs involved.

While the cost of a solicitor’s services is an important factor to consider when choosing a solicitor for the purchase or sale of a property, it should not be the only deciding factor. Picking a solicitor based solely on price can lead to a suboptimal experience, and potentially harm your transaction.

A solicitor who offers significantly lower fees than their competitors may be inexperienced or may cut corners, which can cause problems and delays during the transaction. It’s also essential to be aware of any hidden fees, as these can quickly add up and make the overall cost more expensive.

On the other hand, a solicitor who charges high fees does not necessarily guarantee the best quality of service or expertise. It’s important to consider the solicitor’s experience, credentials, and reputation in addition to their fees.

5. Read reviews and testimonials

Finally, it’s always a good idea to read reviews and testimonials from past clients when choosing a solicitor. Look for a solicitor who has positive reviews and a good reputation in the industry. You can check reviews on the solicitor’s website, Google reviews, or other review platforms.

6. Get recommendations from friends and family

Seeking recommendations from friends or family can be a helpful way to identify potential solicitors for your property transaction. Recommendations from people you know and trust can provide valuable insights into a solicitor’s experience, communication style, and overall quality of service.

When seeking recommendations, it’s important to consider the source of the recommendation. For example, if a friend or family member had a positive experience with a solicitor for a different type of legal matter, they may not necessarily be the best choice for your property transaction.

You should also do your own research and compare the recommended solicitors with other options. Consider factors such as the solicitor’s experience, qualifications, and fees, as well as any reviews or testimonials from past clients.

Ultimately, while seeking recommendations from friends or family can be helpful, it’s important to make your own decision based on your individual needs and circumstances. Choose a solicitor who has the expertise and experience to handle your specific property transaction, and who you feel comfortable working with throughout the process.

Summary

Choosing the right solicitor for the purchase or sale of a property is crucial to ensure a smooth and successful transaction. Consider the solicitor’s area of expertise, qualifications and credentials, experience, communication skills, fees, and reputation when making your decision. With the right solicitor by your side, you can navigate the legal complexities of property transactions with confidence.

Sweeney McHugh Solicitors have a number of experienced Solicitors who deal with property purchases and sales on a daily basis. Please feel free to contact our office for a no obligation quotation on fees or to discuss your next transaction.

Why should you make a will?

WHY MAKE A WILL?

Making a will is a task that many people may overlook, but it is an important legal document that everyone should have in place. In Ireland, having a will is particularly important as it helps ensure that your wishes are carried out after you pass away. There are several reasons why you should make a will in Ireland, and in this article, we will explore some of the key reasons.

To ensure your assets are distributed according to your wishes

One of the main reasons to make a will in Ireland is to ensure that your assets are distributed according to your wishes. Without a will, your assets will be divided according to the laws of intestacy, which may not reflect your desires. By making a will, you can specify who should receive your property, money, and possessions after your death, and in what proportions.

To appoint an executor of your choice

Another important reason to make a will in Ireland is to appoint an executor of your choice. An executor is responsible for managing your estate after your death, and ensuring that your wishes are carried out. By appointing an executor in your will, you can choose someone you trust to handle your affairs and make important decisions on your behalf.

To provide for your loved ones

Making a will in Ireland also allows you to provide for your loved ones after your death. You can specify who should receive your property, money, and possessions, and in what proportions. You can also include provisions for your children, such as appointing a guardian if they are under 18, or setting up a trust for their education or other needs.

To reduce the risk of disputes

Making a will in Ireland can also help reduce the risk of disputes among your loved ones after your death. If you die without a will, your assets will be divided according to the laws of intestacy, which can sometimes result in disagreements among family members. By making a will, you can clearly specify your wishes and reduce the risk of disputes and conflicts.

To ensure your wishes are carried out

Finally, making a will in Ireland ensures that your wishes are carried out after your death. Without a will, you have no control over how your assets are distributed, who manages your estate, or who takes care of your children. By making a will, you can ensure that your wishes are carried out and your loved ones are provided for.

In conclusion, making a will is an essential task that everyone should undertake. It allows you to ensure that your assets are distributed according to your wishes, appoint an executor of your choice, provide for your loved ones, reduce the risk of disputes, and ensure your wishes are carried out. In Ireland, making a will is particularly important, and it is recommended that you seek the advice of a solicitor to ensure that your will is valid and reflects your wishes.

Sweeney McHugh Solicitors can assist you in the process with making a will. Contact our office for an appointment with one of our solicitors to discuss further.

Speed Up Your House Sale

We are finding many sales of property are being unnecessarily delayed because the Vendor(s)

is not ready to sell at the point a property goes sale agreed. The following advice has been prepared

by the Law Society of Ireland as a useful guide to speed up the sale of your house (or other property).

Sweeney McHugh Solicitors can offer a title review service and advise you of any further documents or

information that will be required to allow for a sale of your property.

TO SPEED UP YOUR HOUSE SALE
Contact your solicitor as soon as possible. Your solicitor will need to get your title deeds
immediately in order to prepare a contract for the sale of your house and will also need to
take full instructions from you on the details of the sale. There are several pieces of
information and documentation that your solicitor will need and you should start getting them
together now.

YOU WILL NEED TO GET THE FOLLOWING
1. Details of where your title documents are (if your title deeds are with a bank, provide
the name of the bank and the account number).

2. Local Property Tax printout showing local property tax paid to current year end
(www.revenue.ie).

3. Receipt or Certificate of Discharge showing that the Household Charge has been
discharged (www.householdcharge.ie),

4. Certificate of Exemption or Discharge for NPPR (applied from 2010 to 2013)
(www.nppr.ie),

5. Details of your water and drainage supply,

6. If you have a septic tank on the property, evidence of its registration
(www.protectourwater.ie)

7. If you are or ever have been married, a copy of your state marriage or civil
partnership certificate (and copy of separation agreement or divorce, if applicable),

8. BER Certificate showing the energy rating on your home,

9. Details of any building work you have done with copies of any planning permissions
and architects’ certificates of compliance,

10. If your property is in a managed development, contact details for the management
company/managing agents, and receipts for service charges,

11. If the property is let, copy letting agreement,

12. Details of any contents included in sale,

13. PPS Number(s) – needed for proof of identity,

14. Photographic identification such as passport(s),

15. Utility bill / bank statement (within the last 3 months) to prove your address.

Financial Supports for Building a Home

Financial supports for building a home

There has been a notable increase in the numbers of people who have started the journey towards building their own home. Those have started down this road have many things to consider and organise. There are still quite a few who are unaware of two important schemes which could give them substantial money back at a time when resources are likely to be stretched. At Sweeney McHugh Solicitors we have been assisting many clients in relation to their stage payment mortgages which are traditionally used when carrying out a self-build. As part of this process we have been advising and assisting clients in relation to both the Help To Buy Scheme and the Stamp Duty Refund Scheme.

HELP TO BUY INCENTIVE

This applies both to the purchase of new properties or a new self-build property. If you are hoping to rely upon the incentive for the purchase of a new property you should ensure that the property qualifies before committing to the purchase.

When you are building a new property there are a number of criteria that you must meet to qualify for the relief:

To claim HTB, you must:

be a first-time buyer
buy or build a new property between 19 July 2016 and 31 December 2021
live in the property as your main home for five years after you buy or build it
be tax compliant, if you are self assessed you must also have tax clearance.

To qualify for HTB, the property that you build or buy must be:

your home
newly built with the construction subject to Value Added Tax (VAT) in Ireland.

Purchase value

The purchase value of a new build means the price that you bought it for. For self-built property, the purchase value is the approved valuation by the lender at the time that you took out the mortgage.

If you bought the property between 19 July 2016 and 31 December 2016, the purchase price must be €600,000 or less. If you bought it after 1 January 2017, it must be €500,000 or less.

Mortgage

You must take out your mortgage on the property with a qualifying lender. This loan must be used only for buying or building the property. The loan must be at least 70% of the purchase value of the property. This is known as the loan to value ratio.

You are allowed to have a guarantor on the loan.

How much can you claim?

The amount that you can claim is the lesser of:

€20,000
5% of the purchase price of a new home. For self-builds this is 5% of the completion value of the property
the amount of Income Tax and Deposit Interest Retention Tax (DIRT) you have paid in the four years before your purchase or self-build.

The maximum payment is €20,000 per property. This cap applies regardless of how many people enter into a contract to buy a house.

Universal Social Charge (USC) or Pay Related Social Insurance (PRSI) are not taken into account when calculating how much you can claim.

How will the refund be paid?

If you bought or built the property between 19 July 2016 and 31 December 2016, the refund will be paid directly to you.

If you buy a new build after 1 January 2017, the refund will be paid to the contractor.

If you self-build the property after 1 January 2017, the refund will be paid to a bank account you hold with your loan provider.

How do you apply for Help to Buy (HTB)?

Use myAccount or Revenue Online Service (ROS) to apply for HTB online.

There are two stages to the online process:

the application stage
the claim stage.

Application stage

You can apply as an individual, or part of a group that is buying or building a property. You must complete a declaration and select the years you want to use for a refund. If you are tax compliant, your application will be approved. You will be provided with an application number and a summary of the maximum amount you can claim. You will also be given a 6 digit access code separately through MyEnquiries.

Keep a safe note of both of these codes as you will need to provide them to your lender. If you are buying your home you will also need these codes for your qualifying contractor. If you are self-building you will need these codes for your solicitor. Your contractor or solicitor will require this information to verify what you have submitted.

If you make a HTB application but have not yet made a claim, your application will expire on 31 December. You can then re-apply and make a new HTB application.

Claim stage

You can make your claim once you have either:

signed the contract for your home
drawn down the first part of the mortgage if you are self building.

Step 1

Upload evidence of your mortgage and the following information about your application:

if you are buying a home: a copy of the signed contract
if you are building a home:
- proof of the drawdown of the first part of the mortgage
- a copy of the valuation report from your lender.

Step 2

You will be asked to confirm details about the:

property
purchase price
date of completion
mortgage
amount of deposit already paid.

If you are applying with other people you will also need to confirm the portion of the refund to be refunded to each person. If you are self-building, you will need to provide the BIC and IBAN of the loan bank account.

Once you have submitted your claim you will be provided with a claim reference.

Please ensure that you have carefully checked all the information you input before you sign and submit the claim.

If any of the information you have provided is incorrect, you must:

cancel your claim
submit a new claim with the correct information

This must be done before you continue to step 3.

Step 3

Once you have submitted your claim you should advise your developer or contractor (or solicitor if you are self-building).

Provide them with your claim reference (issued to you after step 2) and access code (issued to you when you submitted your application). Before you receive any refund, the information you have provided will need to be verified by the:

developer or contractor, in the case of a new build
solicitor acting on your behalf, in the case of a self-build.

The refund that you finally receive is limited to 5% of the purchase price of the house. This may mean that it is different to the maximum relief amount that you were given at application stage.

STAMP DUTY REFUND SCHEME

When you build a residential property on previously non-residential land you may qualify for a refund of some of the Stamp Duty paid when the land was purchased or transferred to you.

To qualify you would need to have paid stamp duty at the non-residential rate, currently 7.5% (6% pre 9^th of October 2019). For single property developments the maximum area of your site that you can claim for is 0.4047 hectares (1 acre) therefore if your site was larger than this the relief available will be reduced.

The further requirements to make a claim are:

You must submit a commencement notice for the building of the house and commence development in accordance with this. (NB It is important to keep a copy of the acknowledgement from the Council when you submit your commencement notice)
You must start building within 30 months of the property being purchased or transferred to you.
You must complete the property within 2 years after you commence.

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