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After finding the property you feel confident you’d like to buy, then the price, terms and conditions are agreed upon between the Vendor and yourself. We are here to guide and advise you throughout the process.
The ‘Promise of Sale’ (also known as the ‘Konvenju’) is held at the Notary of your choice, and in cases where you the buyer has no connections with any particular notary, we are able to recommend one and set up a meeting through Belair Property. The agreement is then drafted based on the terms and conditions agreed upon, and signed by both parties in the presence of the Notary.
A deposit usually equivalent to 10-20% is paid upon signing of the ’Promise of Sale’ either to the Vendor or is held by the Notary. Additionally the equivalent of 1% of the purchase price is paid provisionally to the notary upon signing of the promise of sale agreement as a part payment for stamp duty. This payment is compulsory for the promise of sale to be registered and validated.
Stamp duty payments vary according to purchasers situation. If the purchaser is a first time buyer, purchasing as a main residence, he / she will not pay any stamp duty for the first €150,000 and 5% on the balance (if any). If purchaser has owned property in the past but is still purchasing for the purpose of acquiring a main residence, there will be an decrease to 3.5% of the value on the first €150,000 and 5% for any value above that. If a property is purchased as a second home or as an investment / commercial property, the stamp duty is paid at the rate of 5% of the sale price.
Exemptions are currently in place to serve as an incentive, should the property be located in an “Urban Conservation Area”, usually referred to as “Village Core”. If property is purchased in one of these localities the rate is reduced to 2.5% from 5% of the sale price with the same formulas applicable as in normal residential property.
The Notary then conducts the necessary searches and obtains the necessary documentation to satisfy the legal requirements of both parties.
During this time, an architect visit is recommended to ensure that the property is in good structural condition and that all planning permits are in order.
If you require a bank loan in order to proceed with the purchase, then once the ‘Promise of Sale’ is signed you should visit the bank and take a copy of the ‘Promise of Sale’ together with any relevant documentation for the application to be processed. It is advisable to hold discussions regarding possible bank finance or home loans with the banks prior to the signing of the ‘Promise of Sale’. Belair Property has very strong connections with all the leading banks and our team can assist you with the obtaining of home loans when necessary. (Note: When a bank loan is being applied for, a clause in the ‘Promise of Sale’ is usually included, where the agreement is subject to bank finance being approved, usually for a limited number of weeks.)
Once the notary’s searches, architects report and bank loan (if applicable) are all in place and approved, you as the purchaser can then appear on the final deed, where funds are exchanged and the keys are handed over to you. Legal fees vary according to what is required in terms of searches, bank loans, etc. The usual rate is between 1% and 2% of the sale price but this can change depending on each and individual case.