Cost Of Selling A House Explained
So you have made the decision to sell your property – this is probably not one that you have taken lightly. There are many considerations to take into account and not least of all the costs of selling a house.
1. You will need to engage an estate agent to act on your behalf. The professional fee and outlays such as marketing will usually be paid from the booking deposit paid to the estate agent when your property goes “Sale Agreed”. The estate agent will be able to give you an estimate of these fees. Once the sale has been completed, the balance of the booking deposit will be furnished to your solicitor.
2. If there is a mortgage on your house when you are selling, the title documents will be with your lending institution. If there is no mortgage, the title deeds may be retained by you, or solicitor or your bank branch for safe-keeping. There is usually a charge applied by the lending institution to take up the title deeds. This is generally between €35.00 – €70.00, depending on the bank.
3. When your solicitor reviews the title to the property, he or she will be able to estimate the outlay that will be paid on the property. We generally estimate the legal outlay to be in the region of €1,000.00. The following are normal items of outlay that you might expect on a typical sale file:
- If the property is registered, we will require an up to date certified copy folio and file plan. This is €40.00.
- If the property is unregistered, an architect will need to be engaged to mark the property on a Land Registry Compliant Map. This cost is dependent on the architect but are generally €300.00 – €450.00. If there are any planning issues in respect of the property you are selling, such as extensions or alterations, an architect’s certificate may be required. The cost of this is again dependent on the architect but is usually a similar amount the map marking.
- If the property is an apartment or in a managed estate, you must ensure that the service charges are paid up for the year. If the sale closes before the year end for the purposes of the service charges, the purchaser will reimburse you on closing for the overpayment of charges. Certain information will also be required from the management company prior to closing. This is known as Replies to MUDs Act Requisitions. The cost of this information varies between management companies but is approximately €300.00.
- Access to the property must be confirmed pre-contract. There must be clarification as to whether the roads and services adjoining the property have been taken in charge by the Local Authority is important. It is usual for your solicitor to obtain a Certificate from the Council. The property is situate confirming this, and you can expect to pay up to €125.00 for this Certificate. The costs of this varies across the Local Authorities.
- Taxes on the property must be paid in full prior to closing and the appropriate certificates/receipts obtained. You will be required to deal with
- Household Charge 2012
- Non-Principal Private Residence (NPPR) 2009-2013
- Local Property Tax (LPT) 2013-2016
- Irish Water
As per the service charges above, in respect of the LTP the purchaser will reimburse any over-payment of LPT for the year in which the property is sold from the date of closing to year end, but it is imperative that you as the seller pay the LPT in full for the year and provide evidence to this. We also require evidence of registration with Irish Water and proof that all charges have been paid up to date.
- You will be required to swear a Family Home Declaration when you sell your home. Your solicitor will explain the importance of this document but if you are a single person it will cost €10.00. If there are any documents to be exhibited in this document, they will be witnessed at a charge of €2.00 per document. If you are a married person, the declaration will need to be signed by you and your spouse. Each signature is charged at €10.00. Any other declarations that may be required to be signed, are charged at the same rates.
- When the sale closes and the mortgage on the property is paid off, the charge will need to be vacated from the property. Some banks charge to produce the vacated mortgage deed (usually €40.00), which will then need to be registered. Depending on the registration of the title this will cost €40.00 or €50.00.
The above points are guideline estimates of some of the costs associated with selling a house. Before closing, your solicitor will prepare a detailed Bill of Costs and Statement of Account. This will include your solicitors’ fee and VAT. The solicitor will negotiate these costs from the net proceeds of sale of your house.
When the transaction has been completed, the funds will be paid out to your nominated account and you are free to spend the cash as you feel fit! If you want further information visit our dedicated conveyancing site www.buyingahouse.ie to learn more.