Closing Date 6 Weeks - normal or not?

irishguy1983

My solicitor has informed me that once I sign contract the closing date will be 6 weeks from the date I sign contract (this is what is in the contract she has) - is this normal? Why 6 weeks?! Seems like a random figure!

Also when do the bank actually give me the cheque for the mortgage or in fact give the seller? Not really sure how that whole part works!

Is the closing date when everything is done or what's the craic like?

Gumbo

It could be just that you are in a chain and the sellers are waiting on their next property.

Nothing abnormal about it IMHO.

Archaeoliz

We signed our contracts on Tuesday (woo hoo!) and there is a closing date stated in the contract. The vendor's solicitor wanted 11th Feb and we've asked for 29th Jan. We're not in a chain and neither is the seller so we should just be able to come to an agreement. I gather once all the paperwork is in place for the bank (including life assurance policies) there is a two week lead time to draw down the cheque. Normally that's the last thing that's done, a day or two before completion and away you go. Once all the money has changed hands then the keys can be released.

Lots of things can cause a delay, like as kceire said a chain is the most common thing. A super busy solicitor can be another problem.

CreepingDeath

6 weeks gives the seller enough time to arrange the purchase of another property, so they're more than likely in a chain.
I just sold my house and bought another.
Although I was provisionally at sale agreed to buy another house... so 10 days or so were enough for us once our buyers committed to buy.
There's the possibility that the owners haven't a house lined up for themselves, so I certainly would not be surprised if that closing date gets pushed out further.

I'd be asking whether the sellers have a house or rental property lined up for themselves for that closing date.

There was legal risk to me committing to buy my new house until my buyer committed to buy my house. Once you have the buyer on the hook, you hope they'll stay the distance if you get delayed.

Arbiter of Good Taste

In both my cases, it took at least that time, and in neither case was the seller in a chain. So it's not unusual.

irishguy1983

I am buying it through NAMA - no idea if that makes a difference or not?!

Butters1979

It depends on the Vendor's position, as others have said, 6 weeks from contract is not that unusual but is a bit long. It depends on each situation. Is there no specific closing date in the contract? I would look to have that in there.

In terms of getting the money from the bank, you don't get the money. Your solicitor requests draw down close to the closing date and receives the monet themselves, you then transfer any remaining deposit to your solicitor. They then arrange transfer of that money to the vendor.

This might help.

http://www.consumerhelp.ie/buying-a-home-step-by-step-guide

irishguy1983

Butters1979 wrote: »

It depends on the Vendor's position, as others have said, 6 weeks from contract is not that unusual but is a bit long. It depends on each situation. Is there no specific closing date in the contract? I would look to have that in there.

In terms of getting the money from the bank, you don't get the money. Your solicitor requests draw down close to the closing date and receives the monet themselves, you then transfer any remaining deposit to your solicitor. They then arrange transfer of that money to the vendor.

This might help.

http://www.consumerhelp.ie/buying-a-home-step-by-step-guide

Thank you - that was helpful.

The contract date states the closing date is 6 weeks from the date I sign the contract (I have not seen the contract at this stage to be honest) - it is with the solictior - it just seems long but again I really have no idea of the process.

I really just want to know when do the bank release the cash as this will enable me to look for another job if that makes sense. I believe the bank contacts my current employer before releasing cash - I just want to happen ASAP so I am free of my current employer and can look elsewhere!

Butters1979

My advise, don't do anything until you have the keys in your hand and are in the door.

irishguy1983

Butters1979 wrote: »

My advise, don't do anything until you have the keys in your hand and are in the door.

Good call - that was my own thought process.

Desperate to leave job (interviewing at the moment) but I know bank do contact my employer at some stage just to check I am still there/still on same salary/etc. I am just trying to figure out when this exactly happens!!

I certainly won't be jeopardising my mortgage (took me a long time to get here) but keen just to get that cash/cheque so I can move on from current role....I'm not too concerned about when I can move in really - just want to know when I can move on from job!

gaius c

We specified 4 weeks in ours to prevent the thing getting dragged out.

irishguy1983

gaius c wrote: »

We specified 4 weeks in ours to prevent the thing getting dragged out.

But I think is the seller who decides, no?

That is what they put in contract anyway!

I suppose I haven't a clue really but trying to get in wrapped as soon as possible.

gaius c

irishguy1983 wrote: »

But I think is the seller who decides, no?

That is what they put in contract anyway!

I suppose I haven't a clue really but trying to get in wrapped as soon as possible.

Correct but stuff can slip very easily if finance isn't sorted out in time.

irishguy1983

Anyone know anything about the loan offer the solicitor will receive from the bank? Does it take time to review that or is just read over it for 20/30 minutes?

I knwo they take a bit of time reviewing the contract understanably but not sure about the load offer/pack.

Freddiestar

irishguy1983 wrote: »

I am buying it through NAMA - no idea if that makes a difference or not?!

Buying through NAMA takes a long time, I'm still waiting after paying my 10% deposit in October last year. As for the bank contacting your employer I'm not sure that happens, didn't you have to get a salary cert stamped by your employer? I did.

Freddiestar

irishguy1983 wrote: »

My solicitor has informed me that once I sign contract the closing date will be 6 weeks from the date I sign contract (this is what is in the contract she has) - is this normal? Why 6 weeks?! Seems like a random figure!

Also when do the bank actually give me the cheque for the mortgage or in fact give the seller? Not really sure how that whole part works!

Is the closing date when everything is done or what's the craic like?

I think they all say 6 weeks!

irishguy1983

Freddiestar wrote: »

Buying through NAMA takes a long time, I'm still waiting after paying my 10% deposit in October last year. As for the bank contacting your employer I'm not sure that happens, didn't you have to get a salary cert stamped by your employer? I did.

I am probably going to regret asking this but what the hell?!!! October?!

How has it not been closed yet?!!

How you have you just not snapped and withdrew?!

I did indeed get a salary cert stamped by my employer!

Freddiestar

irishguy1983 wrote: »

I am probably going to regret asking this but what the hell?!!! October?!

How has it not been closed yet?!!

How you have you just not snapped and withdrew?!

I did indeed get a salary cert stamped by my employer!

Seller has a clause in the contract that once signed the deposit is non refundable. The house is too nice to give up and I got it for a good price, nothing I can do but sit tight and wait, pain in the hole.

irishguy1983

Freddiestar wrote: »

Seller has a clause in the contract that once signed the deposit is non refundable. The house is too nice to give up and I got it for a good price, nothing I can do but sit tight and wait, pain in the hole.

I hear you on that.

What is the hold up though?

Have you signed contract? Have they signed contract? Where are you exactly?

Freddiestar

irishguy1983 wrote: »

I hear you on that.

What is the hold up though?

Have you signed contract? Have they signed contract? Where are you exactly?

Contracts were signed before Xmas.

What I've read so far about why there's such delays in NAMA sales is that;

1. Neither NAMA or the seller (developer) are in a particular hurry to sell, not like if it was a private sale and they were keen to close in order to move on.
2. There's an additional layer of NAMA paperwork
3. If there's more than one property in a particular development for sale they'll deal with them all at once.

Not sure if all this is why there's such a delay but it sounds right, I've read some people waiting for 9 months.