This section deals with the purchase from the point where you agree with the agent to buy the home through to the stage where you have entered into a legally binding contract to buy. This stage usually takes 4-6 weeks depending on lots of various factors.
This is the letter that the selling agent prepares as soon as you agree to buy. It captures all the relevant and material information, your name, address, details of the house bought, price, any extras, name of your solicitor, name of your bank, whether you are qualifying for the Help to Buy, and the amount of the booking deposit. This sales advice letter is sent to all the key players, you, your solicitor, the builder and the builder’s solicitors.
The information in your Solicitor’s file must be 100% accurate. At Coyne Solicitors we facilitate you opening your file online through this website where you input your key information direct to your new file. This speeds up and ensures the information is accurate. You must use the format of your name that is identical with the way your name is spelt on your Revenue a/c. You cannot purchase without a PPS number as it needs to stamp your purchase deed. The address of your new home must be the same on all the documentation-especially on the loan approval/agreement documents.
Your offer to buy will only be accepted if you have loan approval in principle. Once you agree to buy you should apply to your bank for a formal loan approval/agreement which is specific to the new home. The loan approval may be processed through your mortgage broker or directly with the bank. The amount of the loan will depend on the purchase price and in line with your approval in principle.
At last, your name starts to appear on the paperwork. The Builders Solicitors will have received the sales advice letter by the selling agent as soon as you pay the booking deposit. They (Builders Solicitors) will have the booklets of title ready. They prepare the document known as the CONTRACT (combined building agreement and contract to buy) in duplicate. This is a lengthy agreement and is known throughout as the CONTRACT. Though this is a lengthy document there are only 4 moving parts as far as you are concerned. Your name, address, details of the house and price. Generally, these contracts are not negotiable and the builder will insist on the same contract throughout the development.
Now, this is a big day for you. At Coyne Solicitors, we try to make the signing as easy as possible. We work with you and around your busy schedule. We courier your Contracts to the “delivery address” you give us when you set up your file (this must be a business address for tracked delivery). When you are ready to sign your contracts and all your queries are answered we arrange a video conference call to you at home or elsewhere. If you have any remaining queries these may be dealt with in the video call where we will witness you signing.
You then return the contracts to us via the same tracked courier.
When you receive your loan approval/agreement it is specific to your new home. It states all the terms of your loan. You are required to sign the loan agreement and ancillary charge documents in the presence of your solicitor. If your loan agreement issues before the contracts we will send all to you at the same time. Otherwise, we will courier the loan agreement and ancillary documents to you and arrange signing the same way as the contracts.
As well as paying a booking deposit, you are also required to pay a contract deposit when you sign the contracts. The amount is stated in the contracts. This contract deposit is paid to your solicitor by EFT or BANK DRAFT.
When you sign your contracts you are legally binding yourself to buy the home. You will not be able to get out of the contract unless there is a genuine problem with the drawdown of your loan cheque. If you do not proceed and there is no genuine reason you will forfeit your booking and contract deposits and may also be at risk of further damages.
When your solicitor received your signed contracts and contract deposit they return these to the Builders Solicitors. At this stage, you re legally bound to buy the home. This returning of the contracts to the Builder Solicitors in known as the Contracts Returned stage.
Contracts returned – this means the contracts signed by you along with your contract deposit have been returned by your solicitor to the builder’s solicitor duly sign together with the agreed contract deposit- its the point where you become bound to buy.
EFT – Electrically Transmitted Funds.