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Ireland Real Estate Practices

Overview

Ireland is a small, modern, trade-dependent economy with industry and services now outpacing agriculture as the dominant business sector. Although exports remain the primary engine for growth, the economy has also benefited from a rise in consumer spending, construction, and business investment. Ireland joined in circulating the euro on January 1, 2002 along with 11 other EU nations.

Real Estate Practices

Real estate practitioners in Ireland are generally called 'Auctioneers' and must secure an Auctioneer's License to practice and renew that license annually. They are also called 'Estate Agents' or 'Property Consultants' but will need the same license to practice, which is approved through the courts and issued by the government. There is no MLS operating in Ireland and there is no mandatory fee sharing arrangement. The listing agent, who usually has a sole agency, will sell almost all properties. Practitioners wishing to negotiate for the purchase of a property must deal with the sole agent.

The IAVI (Irish Auctioneers & Valuers Institute) is the leading real estate body in Ireland and represents the vast majority of qualified auctioneers, estate agents, valuers and other property professionals.

The Irish Land Registry dates from 1892 and was established under government auspices to provide a simple, inexpensive and easily accessible system of registration of title. The Irish Land Registry's web site is at www.landregistry.ie and is comprehensive. The data is accessible online, but a specific user name and password are required.

Real property may be mortgaged by mortgage deed. Banks and Building Societies are the normal sources of funding for property purchased in Ireland and will usually lend up to 92% of the sale price, subject to varying criteria which includes evidence of an ability to repay the loan in the agreed term. The standard mortgage term is 20 years. Rates can be variable or fixed, or a combination of both (i.e. fixed rate on a portion of the loan and flexible on the balance). Fixed terms are usually upwards of one year and it is possible to obtain a ten-year fixed-term rate in today's market.

Closing usually occurs within 60 days of contract execution. A solicitor (attorney) generally receives about 1% of the purchase price, plus VAT at 21% and expenses, but fees are negotiable. While Irish solicitors are, in the main, both competent and ethical, it is always best to seek a reference to a solicitor. The Incorporated Law Society will provide the names of professionals to members of the public - its web site is at www.lawsociety.ie

Courtesy of Ganly Walters, Dublin