Selling A Residential Investment Property
Do you have Tenants?
A purchaser may not want to buy a property that has sitting tenants. Therefore, as a first step to selling your residential investment property, you will need to consider if you want to sell the property with the tenants in situ or as a vacant property. You will need to be aware of your tenant’s rights and how to terminate the tenancy if necessary.
Tenants’ Rights
Tenants have certain rights under the Residential Tenancies Acts. For example, a tenant who is in continuous occupation for a period of 6 months may be entitled to what is known as a “part 4 tenancy”. This means that the tenant is entitled to a 4 year tenancy, which can only be terminated in certain specific circumstances. MB Solicitors will help you understand both the tenant’s and your rights and obligations as a landlord.
Notice Period
If you have decided to sell the property as a vacant property, you should arrange to serve notice on the tenants. You should contact your solicitor to ensure that the notice complies with the Residential Tenancies Acts. The required notice period depends on the length of time the tenant has been in occupation of the premises.
LENGTH OF TENANCY |
PERIOD OF NOTICE |
| Less than 6 months | 28 days |
| 6 months or more, but less than 1 year | 35 days |
| 1 year or more but less than 2 years | 42 days |
| 2 years or more but less than 3 years | 56 days |
| 3 years or more but less than 4 years | 84 days |
| 4 years or more but less than 5 years | 112 days |
| 5 years or more but less than 6 years | 140 days |
| 6 years or more but less than 7 years | 168 days |
| 7 years or more but less than 8 years | 196 days |
| 8 or more years | 224 days |
Advertising
The next step is to contact your Estate Agent who will advertise the property for sale. When a satisfactory offer has been received and the booking deposit paid the Estate Agent will forward a sale advice note to MB Solicitors. The sales advice note will detail the purchase price, the property address and the address of the purchaser’s solicitor.
Title Deeds
In order to sell your property you will need to locate the title deeds to your property. If there is an existing mortgage on the property then the title deeds will most likely be held by the bank that provided the mortgage. MB Solicitors will arrange to obtain the title deeds from the bank.
Contract for Sale
Once we have received the title deeds we will investigate title and proceed to draft the contracts for sale. The contracts for sale are sent to the purchaser’s solicitor. Once the purchaser’s solicitor is satisfied with the contracts he/she will arrange for the purchaser to sign and return them to us together with the deposit. The deposit is usually 10% of the purchase price.
Questionnaire
The purchaser’s solicitor will send us a questionnaire known as “Objections and Requisitions on Title”. Once the purchaser’s solicitor is satisfied with the responses they will forward a draft transfer document for our approval.
Closing the Deal
MB Solicitors will then prepare the closing documents and arrange a date for both you and the purchaser’s solicitor to attend his office for the purpose of signing the closing documentation, exchanging keys and alarm code (if any) for the purchase price.
Repaying the existing mortgage
We will arrange to discharge the balance of your existing mortgage from the purchase funds.