Buying or Selling a Property? Common Causes of Conveyancing Delays
Buying a house or selling one is a major milestone and, for many people, one of the most significant financial transactions they will ever complete.
Once a sale is agreed, it is understandable that both the buyer and seller will want the transaction to move forward as quickly as possible. However, conveyancing involves more than simply signing a contract and handing over the keys. A number of legal, financial and practical matters must be dealt with before a sale can safely be completed.
Many transactions proceed smoothly, but delays can arise. Understanding some of the most common causes can help buyers and sellers know what to expect and take practical steps to keep matters moving.
What Is Conveyancing?
Conveyancing is the legal process involved in transferring ownership of a property from a seller to a buyer.
Depending on the transaction, it can include:
- reviewing and negotiating the contract for sale;
- checking the seller’s legal title to the property;
- examining planning and building documentation;
- carrying out legal searches;
- dealing with mortgage requirements;
- investigating rights of way, boundaries and other matters affecting the property;
- arranging the transfer of the purchase funds; and
- registering the buyer’s ownership after completion.
A property transaction usually involves several people and organisations, including the buyer, seller, solicitors, auctioneer, lender, mortgage broker, engineer and, in some cases, the local authority or Tailte Éireann.
A delay involving any one of these parties can affect the transaction as a whole.
- Delays in Obtaining Mortgage Approval
Mortgage approval is one of the most common causes of delay for purchasers.
Approval in principle is helpful, but it is not the same as having a formal loan offer for the particular property.
Before issuing loan funds, a lender may require a valuation, evidence of income, updated bank statements, insurance documents or clarification regarding the purchaser’s financial circumstances.
Delays can arise where:
- further financial documents are required;
- the lender’s valuation has not been completed;
- there has been a change in the purchaser’s income or employment;
- conditions in the loan offer remain outstanding; or
- the property does not fully meet the lender’s requirements.
Purchasers should apply for mortgage approval as early as possible and respond promptly to requests from their lender or mortgage broker.
A purchaser should not assume that the mortgage is ready to draw down simply because approval in principle has been obtained.
- Problems with the Property Title
In simple terms, title means the legal ownership of the property and the documents or official records showing that the seller is entitled to sell it.
When the buyer’s solicitor reviews the title, an issue may emerge that must be clarified or corrected before the transaction can proceed.
Examples include:
- missing title documents;
- an earlier transfer or registration not having been completed;
- an unregistered property;
- an existing mortgage, charge or restriction that must be discharged;
- uncertainty about the property’s boundaries;
- a right of way or access issue;
- part of the property being outside the registered title; or
- another person having a legal interest in the property.
These issues can be particularly important with older or rural properties, including properties throughout Kerry and West Limerick, where access arrangements, maps and boundaries may have developed over many years.
A title issue does not necessarily mean that the sale cannot proceed. However, further documents, explanations, maps or corrective legal work may be needed.
- Delays in Signing and Returning Documents
Sometimes the cause of a delay is relatively straightforward.
Contracts, declarations, mortgage documents and other papers may need to be signed and returned before the transaction can move to the next stage. If documents are returned late, completed incorrectly or require an independent witness, this can affect the proposed closing date.
Delays may also arise where:
- requested identification has not been provided;
- proof of address is out of date;
- a party is unavailable to sign;
- additional enquiries have not been answered;
- original documents are missing; or
- information supplied earlier needs to be clarified.
Buyers and sellers can help by responding promptly to their solicitor and mentioning any planned holidays or periods when they will be unavailable.
- Linked Sales and Purchases
Many property transactions form part of a chain.
For example, a seller may be using the proceeds from the sale of their existing home to purchase another property. Equally, a buyer may need to complete the sale of another property before having all of the funds required for the purchase.
Where transactions are linked, a delay in one sale or purchase can affect several others. This can be frustrating, particularly where the delay relates to a transaction over which you have no control. Clear communication between the solicitors, auctioneers and clients is important so that realistic closing arrangements can be made.
Until contracts have been signed and the legal requirements have been satisfied, buyers and sellers should be cautious about making fixed moving arrangements.
- Planning and Building Compliance Issues
Extensions, attic conversions, garages, porches and other alterations can raise planning or building compliance questions.
Problems may arise where:
- planning permission was required but was not obtained;
- the completed work differs from the permission granted;
- a planning condition has not been complied with;
- certificates of compliance are missing;
- building regulation documentation is incomplete; or
- the use of part of the property has changed.
Resolving these matters may require assistance from an architect, engineer or planning consultant. In some cases, a retention planning application or additional certification may be required.
A seller should tell their solicitor at the outset about any extension, conversion, renovation or structural alteration, even if the works were completed many years ago. Early disclosure gives the solicitor an opportunity to identify what documentation will be needed.
- Delays with New-Build Properties
Buying a newly built home involves additional considerations.
A proposed completion date may change because of construction schedules, utility connections, roads and services, inspections or the availability of compliance documentation.
Potential causes of delay include:
- the house not being completed on schedule;
- roads, footpaths or common areas remaining unfinished;
- delays in connecting water, electricity or other services;
- compliance certificates not yet being available;
- outstanding planning requirements; or
- delays in completing the property’s first registration.
Some matters will be outside the purchaser’s direct control. Buyers should avoid treating an estimated completion date as guaranteed and should keep their mortgage approval and other arrangements under review while construction continues.
- Probate and Estate Sales
Where the owner of a property has died, the person dealing with the estate may need a Grant of Probate or Letters of Administration before the sale can be completed.
These documents confirm who has the legal authority to administer the estate and deal with its assets.
Delays may arise where:
- the grant has not yet issued;
- information or documentation relating to the estate is outstanding;
- the person selling must prove their authority to act;
- several beneficiaries or personal representatives are involved; or
- another issue affecting the administration of the estate must first be resolved.
A property can sometimes be placed on the market while the probate process is ongoing, but this does not necessarily mean that the sale can complete immediately.
- Property Registration Matters
After a purchase completes, the buyer’s ownership and any new mortgage must generally be registered with Tailte Éireann.
This registration usually takes place after closing and does not normally prevent the purchaser from taking possession of the property. However, processing times vary depending on the type and complexity of the application.
How Can Buyers and Sellers Help Reduce Delays?
Not every delay can be prevented, but early preparation can make a considerable difference.
Practical steps include:
- instructing a solicitor as early as possible;
- obtaining mortgage approval promptly;
- providing identification and proof of address without delay;
- responding quickly to requests for information;
- telling your solicitor about extensions, alterations, boundaries or access issues;
- locating planning, building and title documents at an early stage;
- signing and returning documents promptly;
- providing details of any existing mortgage over the property; and
- keeping your solicitor informed about proposed moving dates or linked transactions.
For a seller, instructing a solicitor when the property is placed on the market, rather than waiting until a buyer has been found, can allow the title documents and contract papers to be prepared earlier.
For a purchaser, arranging the survey, valuation and mortgage requirements promptly can help identify potential difficulties before the proposed closing date approaches.
Why Every Property Transaction Is Different
Friends or family members may tell you that their own sale or purchase completed within a particular number of weeks. While that can provide a useful point of reference, no two transactions are exactly the same.
The time required for completion of a property transaction will depend on the property in question, the title, the parties involved, the mortgage arrangements and whether any legal or compliance issue needs to be resolved.
A delay does not always mean that something has gone wrong or that nobody is progressing the transaction. Sometimes further investigation is necessary to ensure that the buyer receives proper title, the seller’s obligations are satisfied and the lender’s security can be put in place.
How Pierse Fitzgibbon Can Help
At Pierse Fitzgibbon Solicitors, our property team assists private clients buying and selling homes in Listowel, throughout Kerry, West Limerick and beyond.
We understand that clients want clear information about where their transaction stands, what remains to be done and whether anything is likely to affect the proposed closing date. Our role is to guide you through the conveyancing process, identify legal and title issues as early as possible, explain those issues in practical terms and work with the other parties to move the transaction forward.
Buying or Selling a Property?
If you are thinking about buying or selling a home, taking legal advice at an early stage can help identify potential problems and reduce avoidable delays.
Contact our Property Team to speak about your proposed sale or purchase.
This article is intended for general information purposes only and does not constitute legal or financial advice. Conveyancing requirements depend on the circumstances of the individual property and transaction. Specific legal advice should always be obtained in relation to your own circumstances.