I HAVE FOUND MY IDEAL HOME.
Buying property requires a commitment to physically and financially secure the future environment of your household. Concluding the deal within a set timeframe (normally dictated by the term stated in the preliminary agreement) is of utmost importance in order not to risk missing out on a great opportunity.
Understanding the different phases of the home purchase cycle enables you to keep track of the whole process, and follow up matters as and when necessary with the right people involved in this process. In doing so, you would ensure that every phase of the cycle, which ultimately leads to the signing of the deed of purchase to finalise the acquisition of your home, is attended to within the established timeframe.
Once you have found the perfect property, you need to work with your real estate agent to get it at a price you can afford. Once a price is agreed upon, you will need to set a date and time for the “promise of sale” signing. The timeframe of the said agreement is the period during which the following activities have to take place.
Click here to download the General Pre-contractual General information sheet.
Even though you should have assessed the affordability of a property before you began your search, a more formal quotation is necessary. You need to know for sure how much you can borrow, how much it will cost per month, how much of a deposit you will need and whether your initial assessment of affordability was accurate or not.
Book an appointment with one of our specialist advisors to talk through your plans, assess your suitability for a home loan and decide how much you can realistically afford. Then you know for sure that the decisions you’re making are right for your situation now and in the future.
The “promise of sale” or convenium will need to be arranged with your notary and will include the particulars of the sale. Typically this would include:
- Freehold, leasehold, or ground rent details
- Property particulars
- Payment method
- Requirements from the owner
- Terms of the sale
- Final deed signing date
- Copy of preliminary Agreement
- Copy of ID Card
- Proof of income – payslip/FS3
- Completion of Statement of Affairs on Bank’s Form AD3
- Copy of the bank statements of any previous bank borrowings.
Once the convenium has been signed, there will be some time between that and the final deed. There are other things you will need to be doing in that time.
- Your notary will need to register the convenium with the Commissioner of Inland Revenue and pay 1% of the sale price as duty.
- The notary will also need to carry out searches into the property and the surrounding area. They will also need to ensure the seller has legal title and that there is nothing stopping you buying the property in good faith. That can include debts still secured on it.
- As the buyer, you will also need to proceed with your home loan application and ensure you do your bit to have everything in place in time.
- The seller must also honour all the conditions agreed to in the convenium. If they have to make repairs, they have to be complete before the final deed signing and so on.
Check with your nearest APS Branch that:
- All paperwork is attended to
- Insurance documents are handed to the bank for pledging purposes (i.e. Life and House policies)
Check with Notary that all the pre-deed documentation including copies of searches and draft deed has been passed to the Bank’s lawyer.
Once these steps have been completed, the final deed will need to be signed. Usually, this will be signed at the bank as we are providing the finance to secure the deal.
Typically, the contract is read out and confirmed. If all parties are still in agreement, the formal signing will take place there and then. We shall pay off the balance of price to the seller, less the deposit paid. You and the seller will settle your accounts by paying for any fees, Capital Gains tax, Stamp Duty and agents fees.
Ensure that your front contribution is available to pay vendor on date of signing deed. Standing orders are signed at the time to authorize payment of
- Loan repayments
- Insurance premia
- Ground rent (if applicable)
Notary is reminded to register the deed of borrowing and transfer of property within 15 days and a copy of contract is issued to the Bank and the customer.
The following contacts might have to be informed when moving into a new house :
- Water services corporation
- Electricity department
- Post office
- News agent
- H P companies
- Mobile Phone Company
- Insurance Company
- Magazine subscriptions
- Cable/Digital company
Once these steps are complete, you are free to move into your new home! While you’re moving in, your notary will register the sale at the public registry and the land registry as is legally required.
Once this process is complete and everyone has been paid, your home is your own at last!