New Conveyancing Contract for Sale of Property
From January 1 2019, there will be a fundamental change as to how conveyancing transactions are conducted in Ireland.
In the New Year, solicitors acting in the sale of properties will need to produce and evidence title in full to prospective Purchaser’s solicitors when issuing contracts.
The intention is that the purchaser’s solicitor will fully investigate title at the outset of the process. This should avoid delays at a later stage, following exchange. In a large number of transactions already happening, this detailed investigation of title at the outset is already being carried out.
Consequently, this will mean that a prospective Purchaser will acknowledge and accept title on exchange and the ability to raise queries and/or challenge title will be limited to exceptional circumstances (for example where the issue was not apparent prior to the exchange of contracts).
The ultimate aim of this change is to achieve a more secure contractual position at contract exchange by dealing with all matters pre-contract.
What does this mean to our client?
- The new procedure means that vendors should engage with their solicitor at a very early stage in the process, to ensure that you collate all documentation necessary to sell the property
- There may be more upfront costs incurred, including outlays, for vendors and purchasers to bring the matter to a stage where contracts are ready to issue and/or be exchanged. As such, the position in relation to fees, especially abort fees, will need to be addressed at the outset
- It is expected that the new approach will lead to a reduction of post-contract issues arising and may help to avoid litigation and as such streamline the process
For further information contact Keith McConnell or Sally Alford.