Buying a house is a cherished dream. A lot of people spend their entire life savings to buy the home of their dreams. Thus, people usually get emotionally attached to their residences. However, laws in certain countries or cities can ruin this newfound happiness. While real estate purchases in Ireland are not as complicated, you may still face these four legal problems when buying a house.
1. Illegal property transactions
One of the most common legal problems when buying a house is an illegal property or transaction demand. Some property might have been illegally developed without planning permission, while others may have no legal title. This can cause a headache for buyers.
In many cases, the seller might ask for payment under the table to evade the capital gains tax liability. It is a bad idea for a buyer to accept this deal because it will increase their own gains tax if they sell in the future.
2. Fraudulent professionals
Another problem you may face when buying a house is fraudulent sellers. Some agents, builders, or homeowners may dupe their buyers. Even after paying the amount, they may not receive the title or the house on the promised date. This can be devastating for buyers and will eventually lead to a legal battle.
3. Inheriting property debts
In Ireland, the law of subrogation is a common legal problem when buying a house. Under this law, buyers will inherit any property debt, including mortgages and service charges. Therefore, you must have a solicitor check the outstanding debt on your dream home before closing the deal.
4. Freehold or leasehold confusion
The confusion between freehold and leasehold properties is also a legal problem when buying a house in Ireland. The property is either freehold (owned by a person indefinitely) or leasehold (owned by buyers for a specified term). The former gives you the freedom to do whatever you wish with the house. The latter is similar to renting a house. A solicitor can help you identify whether your home is leasehold or freehold.
A real estate purchase will be a dream come true, but it is necessary to be cautious. You must be aware of these four potential legal problems when buying a house in Ireland. With this knowledge, you can make an informed decision and a safe purchase. Staying aware will bring you peace of mind.
