Getting a move on — how to speed up the Ireland’s snail’s-pace process of buying a new home

You might think the conveyancing process involves a glamorous estate agent ringing a bell to mark the closing of a sale and the new owner getting the keys to their new abode in a matter of weeks.

Aside from the smoke and mirrors that goes along with producing a drama-filled US reality show and the real legalities of the escrow process (where a neutral third party holds onto the funds while the conditions for purchase offers are confirmed), it is possible for a cash buyer in the US to buy a house and be living in it within 28 days, or 50 days if they’re taking out a mortgage.

By contrast, Ireland’s mostly paper-based system of conveyancing – epitomised by the four-feet high stacks of files sitting on the desks of some rural practitioners – takes place at a glacial speed.

Here, it takes about four months for a property to go from sale agreed to a sale being closed, according to an August survey of 534 estate agents carried out by the Institute of Professional Auctioneers and Valuers (Ipav).

An October survey for Ipav, conducted by Ireland Thinks, found that seven-in-10 consumers who have encountered conveyancing experienced problems with the process.

One of the current causes of delays is the length of time it takes lenders to release title deeds – registered legal documents that prove ownership of a property – to the seller’s solicitor.

That process can take anything from four weeks to eight weeks, according to Pat Davitt, Ipav’s chief executive.

Conveyancing solicitor Sonia McEntee says she has waited six months for a lender to provide her with a client’s title deeds.

This unpredictable, protracted legal process of transferring ownership from seller to buyer isn’t just frustrating and stressful – it has financial repercussions.

Some 84pc of the agents surveyed by Ipav have seen property sales fall through due to conveyancing delays. More than a quarter of agents say such delays cause banks to “frequently” withdraw loan offers, which typically expire after six months.

Buyers especially have a lot to lose if their loan offer expires and they don’t get an extension from their lender: rising house prices – particularly outside Dublin – and lender stress tests for higher interest rates mean purchasers may only qualify for a smaller amount if they have to resubmit a mortgage application.

This means they may have to opt for a smaller property, buy outside their desired area, and incur another round of costs, such as for a survey and further conveyancing, for another property.

A quarter of agents say delays can cause banks to “frequently” withdraw loan offers, which typically expire after six months

Colin Rockett, mortgage team lead at NFP Ireland, says: “We’ve even seen clients missing out on lower interest rates and cashback offers due to not receiving all the legal documents prior to the deadline for such offers.”

The conveyancing process is mostly outside a buyer’s control. However, you can take the following steps to ensure it goes as quickly and smoothly as possible.

Hire the right solicitor straight away

As soon as you start house-hunting, source a solicitor to do the conveyancing, and tell them when your offer is accepted. The selling agent will ask for your solicitor’s details to pass onto the vendor’s solicitor to get the ball rolling.

For most people, buying a home for the first time will be their first real experience of engaging with a solicitor. Make sure you get positive recommendations from a relative, friend or co-worker.

Ensure your solicitor is tech-savvy

Ask about their use of technology. If the solicitor is old school and wants you to come to their practice every time something needs signing or sends documents by snail mail instead of in an email attachment, you might find the conveyancing process will drag on.

In December, the Law Society’s conditions of sale were changed to allow for digital contracts for the sale of property. This means digital signatures, using software such as DocuSign, can be used in some contracts and that these contracts can be exchanged digitally.

However, it will take time for one-person practices to adopt the process.

Some conveyancing firms, such as Jacob Law in Co Waterford, are now using Zoom and Teams calls to meet the requirement for witnessed, physical signatures, Rockett says.

“We’re finding that conveyancing is typically taking 10 to 12 weeks, but this could be reduced to six weeks if paperless practices such as using DocuSign and Zoom/Teams meetings were used instead of face-to-face meetings,” he says. “We have a lot of clients who can’t arrange to come into a solicitor because of their work schedule.

“If you use a digital-savvy solicitor, you’re not restricted to who’s in your locality. At the same time, though, a good solicitor will do all of the heavy lifting for you and if you do have a recommendation, go with them.”

Ask for weekly updates

Ask your solicitor to contact you as soon as they have received the sales advice notice from the selling agent and request they put space in their diary for a catch-up by phone once a week or fortnightly to keep you up to speed and to ensure they’re not just sitting on your file.

Buyer’s agent Breffnie O’Kelly says: “Sometimes people are too shy to ring their solicitor and ask them where things are at. But you’re not a lamb to the slaughter – take an active role.

“Make sure the solicitor is working actively on your behalf and that they become a squeaky wheel to get the attention of the vendor’s solicitor.

You’re not a lamb to the slaughter – take an active role

“Find out who is going to be your point of contact at the practice. You may have engaged a solicitor called John Brown but in reality it might a paralegal called Mary who is doing the work. If you’re going to be a collie dog chasing this, you want to know who to chase.”

Ask about the seller’s paperwork

If you’re about to put in a bid, ask the selling agent if the vendor already has a solicitor and if that solicitor has the title deeds. If they don’t, expect delays.

If the agent won’t disclose this information, “you can get clues from the house,” O’Kelly says. “If the house is a wreck with a crazy attic conversion, it can follow that paperwork will be a mess. It’s unusual to buy a house that’s topsy-turvy and find that the paperwork is pristine.

“It’s the same brain behind the building and all that paperwork.”

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Greasing the wheels of Ireland’s creaking conveyancing system

There have been a slew of efforts in recent years to address the glacial pace of Ireland’s antiquated conveyancing system – with varying degrees of success.

These include the digitisation of property titles at Tailte Éireann, a new body tasked with streamlining the State’s registry, valuation, and surveying functions. But solicitor Sonia McEntee says there are delays in registration due to a backlog at property registration body Tailte Éireann.

In 2019, the Law Society introduced the ‘pre-contract investigation of title’ system to bring forward most of the information and work in the pre-contract phase of conveyancing to enable due diligence before contracts are exchanged. But 75pc of agents surveyed by Ipav said it has not improved the situation.

Instead, Ipav says conveyancing times could be cut in half if the Seller’s Legal Pack for Property Buyers Bill 2021 was passed. This legislation would require a vendor to prepare a seller’s legal pack before putting a property on the market.

The pack would provide buyers with documents such as contracts for sale, planning documents, and certificates of compliance with planning and building rules. Ipav CEO Pat Davitt says this process already exists for properties sold via public auctions, with post-auction sales closing in just four weeks.

The bill passed the second stage in the Dáil in October but hasn’t progressed much since. In November, Taoiseach Leo Varadkar set up an expert group to examine the obstacles in conveyancing and probate.