This is a small but very significant step. It is the last link in the process of buying a house. It is significant because, until this point, the contractor was not legally bound to sell the build to you. Contracts exchanged signifies the commitment to complete the home.
This means the builder has signed (executed) the contract and sent a signed copy back to COYNE Solicitors. You will recall you signed two copies when you signed. Now the builder keeps one copy and sends the other to your solicitor. This signed contract is the keystone of the whole transaction. Your solicitor will inform you as soon as they receive the contract.
If you rely on the Help to Buy (HTB) scheme, you will be required to upload a copy of the exchanged contract and your accepted loan offer to the Revenue HTB website. COYNE Solicitors will forward you a copy of the exchanged contract and signed loan offer for that purpose. Then, you apply directly to Revenue by logging onto their HTB website, uploading the contract, and signing a loan offer. Revenue will process your application in several days send you an ACCESS code. The ACCESS code, along with the two codes Revenue already issued (Application and Authority), must all be sent to the Developer via the Agent. It would help if you let COYNE Solicitors know when you supply these codes to the Agent. COYNE Solicitors then requests a receipt from the Developer Solicitor, who then sends this to your bank.
Your bank will require proof that the value of the home exceeds the amount of the loan. This valuation is carried out by a bank approved valuer near the completion of the house.
Another level of protection for the bank and you are a mortgage protection policy that will pay off the loan if you die during the term. This is a pre-condition of all home loans. This is usually a straight forward application but may be complex if either borrower has any significant health issues. You should apply for a mortgage protection/life assurance policy early if you have serious health issues. You have now set in train all the background paperwork, and the most important and dynamic stage is about to happen. The next stage arrives when the home is completed.
Charge documents – These are documents that will register a charge against your title securing the loan. The charge is the bank security that you cannot sell the house without approval.
Deed of confirmation – This is a document required when receiving a gift from a third party towards the deposit or purchase price. The confirmation is for the protection of the bank. The confirmation must be signed by the person making the gift before a solicitor. The principle is to ensure that the person making the gift CONFIRMS that their gift will not rank ahead of outstanding bank loan upon the sale of the house.