Purchasing a new property is a costly and often daunting experience, particularly in the case of the first time buyer. It is important that you, the purchaser, are made aware from the outset of the costs you are likely to incur along the way.
The law requires solicitors, as soon as is practicable after taking instructions, to write to you, the client with details of the solicitor’s actual charges or, where this is not possible, an estimate of the solicitor’s charges or alternatively, the basis on which the solicitor’s fees are to be charged. This is known as a Section 68 letter (in accordance with Section 68 of the Solicitors Act 1994).
At Brophy Solicitors we will always endeavour to provide you with a clear and concise projection of fees and likely costs and outlays from the outset. Whilst each purchase is unique, I hope that this article will give you a good idea of the costs and outlays involved in the majority of cases.
Professional fees will be quoted from the outset. In addition to my professional fee you, will also be charged for postage and petty outlays such as photocopying, couriers fees etc. The legal fee together with the fee for petty outlays will be subject to VAT at 23%. Therefore, if we charge you a professional fee of €1,250.00 + VAT, you would be charged as follows
|VAT at 23%||€287.50|
*** Please note that I am charging a summer special flat rate legal fee of €1,099 + VAT and outlays until 31st August 2015***
In addition to professional fees there are a number of outlays that you will incur as a matter of certainty.
Stamp Duty is payable at a rate of 1% of the purchase price of residential property having a value of up to €1,000,000.00. Anything in excess of €1,000,000.00 will be charged at a rate of 2%.
Therefore, if you are purchasing a property at a cost of €250,000 then Stamp Duty will be calculated as follows:-
€250,000.00 @ 1% = €2,500.00
If you are purchasing a property at a cost of €1,250,000.00 then in that case Stamp Duty will be calculated as follows:-
€1,000,000.00 @ 1% = €10,000.00
€ 250,000.00 @ 2% = € 5,000.00
Total Stamp Duty payable = €15,000.00
Stamp Duty is payable at a rate of 2% of the purchase price of all non-residential property.
Registration fees are paid to the Property Registration Authority of Ireland.
If the property you are purchasing is Registered Title (i.e. has previously been registered in the Land Registry), then these fees will be in the region of €600.00 to €800.00 depending on the price of the property. These fees are broken down as follows:
|Purchase Price||Registration Fee|
|Up to €50,000||€400|
|In excess of €50,000 and up to €200,000||€600|
|In excess of €200,000 and up to €400,000||€700|
|In excess of €400,000||€800|
If you are obtaining a mortgage then this must also be registered. The fee to register your mortgage in the Land Registry is €175.00.
If, however, the property you are purchasing is Unregistered Title (i.e. it has never previously been registered in the Land Registry), then in that case, the property will be the subject of a First Registration application in the Land Registry which will cost €130 and this will include the cost of registering your mortgage.
In addition, the Law Society recommends that any deed the subject of a first registration application should first be registered in the Registry of Deeds. The cost of registering a Deed in the Registry of Deeds is €50.00. Therefore, the cost of a first registration application will be calculated as follows:-
Registry of Deeds
Registration of Purchase Deed € 50.00
Registration of Mortgage € 50.00
First Registration application €130.00
Before you sign the Contract for Sale I will carry out a planning search against the property. The purpose of this search to ensure that there are no enforcement notices affecting the property and to disclose whether or not there have been any planning applications (i.e. for extensions/developments) in relation to the property. Planning Searches cost in the region of €40.00
On closing I will be required to carry out searches against the Vendor and the property in sale to ensure that there are no judgements/charges (mortgages) registered against the property other than those that have already been disclosed. The searches carried out will vary depending on the type of property you are purchasing.
Closing searches usually cost in the region of €100.00-€150.00.
Commissioner for Oaths
It will be necessary to have certain Statutory Declarations sworn by a third party Solicitor. When purchasing property there is generally only one such declaration needed (a Family Home Declaration) and these fees will range between €12 and €25 generally.
This article is to be used as a general guide only to help you, the prospective purchaser to have a realistic idea of what fees and outlay you are likely to incur when purchasing a new property. If you have any queries in relation to the purchase of a new property please do not hesitate to contact me by calling the office on 01 6797930 or alternatively you can email me directly at nessa[at]brophysolicitors.ie.