Other than conveyancing solicitor fees, there are additional outlay costs involved in buying a house or apartment. Some of the costs are payable at the beginning of the transaction before you engage your solicitor.
These are sometimes termed as the hidden costs of buying a property in Ireland.
SURVEYOR FEES
For example, before you buy a property you will engage a surveyor to prepare a report on the structural integrity of the property. The surveyors’ fees range from €400 – €900. The purpose of the survey is to highlight any structural issues with the property. Once you have received the survey you can make an informed decision as to whether you want to buy the property. If there are any structural issues with the property you may wish to use the survey to re-negotiate the purchase price through the estate agent.
STAMP DUTY
This is a tax that is payable on the transfer of property. The rate of Stamp Duty is 1% of the purchase price or 1% of the market value of the where the property is sold at an undervalue/discount.
LAND REGISTRY FEES
Land Registry fees are payable to the Land Registry to register you as owner of the property. The fees are as follows:
| Sale price | €0-€50,000 | · €400 |
| Sale Price | €50,000 – €200,000 | · €600 |
| Sale Price | €200,000- €400,000 | · €700 |
| Sale Price | In excess of €400,000 | · €800 |
| Registration of Mortgage | n/a | · €175 |
| Removal of a mortgage | n/a | · €40 |
CLOSING SEARCHES
Closing searches are carried out by a third-party service provider. Before the transaction completes, your solicitor will order closing searches. The purpose of the closing searches is to ensure that the person selling the property is the owner of the property, there are no court judgements registered against the seller that can affect the property in sale, that the seller has not been adjudicated a bankrupt and that there is no litigation against the property. The cost of closing searches depends on whether the property is registered in the Registry of Deeds or Land Registry. Registry of deeds searches are more expensive as they require a physical search whereas Land Registry search is completed online.
PLANNING SEARCHES
This is a search in the local authority to ensure there are no compulsory purchase orders against the property i.e. that the local Council is not intending to buy the property or any part of the property in sale, there are no enforcement orders against the property and to ensure that the property has the correct planning documentation.
Swearing fees: If you are using a mortgage to purchase a property you will have to sign a declaration confirming whether the property is family home. This declaration must be witnessed by a Commissioner for Oaths or practicing solicitor. Your own solicitor cannot witness the declaration. The fee for witnessing the declaration is €10.00 per signature.
MANAGEMENT COMPANY CHARGES
if you are buying an apartment or in some circumstances a house, you will be liable to pay management company service charges. These are annual charges set be the management company. The service charges are to cover the cost of insurance and maintenance of the common areas. Every management company charges a different service charge.
LOCAL PROPERTY TAX [LPT]
Local Property Tax is based on the market value of the property. It is an annual tax and is calculated from the 1 January to the 31 of December. The seller will pay the Local Property Tax for the full year. On closing of the transaction, the annual Local Property Tax is apportioned between the purchaser and the seller. For example, if the annual Local Property Tax is €100 and the transaction were to close in the 1 June, the purchaser will pay an additional €50.00 to the seller to cover the Local Property Tax for the brief interregnum period when the purchaser will be the owner of the property during this period.
For clear legal advice and competitive, efficient conveyancing fees and services contact MB Solicitors call +353-567 7343 or use the enquiry form below.
