Once your bank has formally approved your loan in writing on the basis of the price of the house and information furnished by you, a loan pack is issued to you and the Loan Pack comprising Mortgage Documentation is issued to your Solicitor. This solicitor loan pack has now been received.
Your solicitor will go through the loan offer and will discuss key terms with you. Your solicitor will also ensure the various documents are signed and completed to enable the Bank to proceed with your loan.
For example one of the documents to be dealt with is the “Certificate of Title”.
Once good marketable title is obtained the solicitor will then give a Certificate of Title and the bank will rely on this together with the solicitor’s undertaking and the lender will hold onto the documents of title.
Once the bank’s mortgage is secured on the property and good marketable title has been obtained then the bank will be able to move on the property if there is a default on the loan.
Your solicitor must be happy to proceed with the purchase of a property and they must ensure that there is no problem which will affect their ability to give an undertaking to obtain good marketable title and to certify title.
Problems which would concern a solicitor would be issues such as easements, rights of way, planning permission issues, building regulation problems, septic tanks on someone else’s property, no certificate of compliance from an architect/engineer, and so forth.
Minor issues which might be flagged up in a structural survey may not cause much concern, but the issues would need to be genuinely minor.
The Mortgage Documentation consists of:
General Housing Loan Mortgage Conditions
General Housing Loan Mortgage Conditions (Borrower's Copy)
Payment Request form
Housing Loan Mortgage( In duplicate).
Borrower's Copy of Housing Loan Mortgage
Power of Attorney
Notice of Assignment
Certificate of Title
Confirmation of Mortgage
Deed of Assignment
You should go through the loan offer in detail and make sure that the rates and term in the loan offer correspond with what you have agreed with the bank. When your Solicitor has checked the Loan Pack and discussed key terms with you, various documents are signed and completed to enable the Bank to proceed with your loan.
Should you be unhappy with any aspect of your loan offer ensure you contact your lending institution.
Once your solicitor has reviewed the terms of the contract they will notify you of the deposit to be paid (normally a percentage of the purchase price less the booking deposit paid to the estate agent). The client will lodge this amount with their solicitor and makes an appointment to visit their solicitor to sign the contracts.
Both you and your solicitor will coordinate to arrange for the contract to be signed. These signed contracts will then be sent to the seller's solicitor for signature.
Please feel free to contact or see our FAQs for any questions you might have.