New legislation will cut delays in conveyancing

A Bill that has passed the second stage in Dáil Éireann is expected to cut delays in conveyancing by at least half.

Conveyancing is the legal transfer of property title from seller to buyer, a process that currently takes four months on average.

The Institute of Professional Auctioneers and Valuers (IPAV) says the new legislation will also “seriously reduce the incidents of gazumping and save prospective buyers from making offers and incurring the expense of engaging the services of engineers and surveyors for properties that end up being withdrawn from sale because of issues around title, rights of way and other such issues that often emerge late in the process”.

An Ireland Thinks poll recently found that almost seven in ten consumers (73%) for whom conveyancing is applicable, have experienced problems with the process.

Sligo-based Independent TD Marc MacSharry, who brought forward the Bill, said it would modernise the conveyancing system.

“The passing of the Seller’s Legal Pack Bill is of benefit to consumers across Ireland. It will shorten what is currently a lengthy conveyancing process, putting people in their homes in a reasonable timeframe.

“Frontloading the property sales process with the adoption of the Seller’s Legal Pack is critical to making property purchases more efficient and transparent for all parties.”

Pat Davitt, IPAV’s chief executive, said the Bill will align the practice with the demands of citizens and it will make market wide a procedure that already applies in online public auctions and public auction sales.

“The issue of mortgage approvals lapsing because of conveyancing delays is a particularly egregious one currently because consumers are potentially facing higher interest rates on reapplying,” he said.

A recent survey of IPAV members found that 78% had seen the purchasers’ loan offer expire or be withdrawn because of conveyancing delays.

The Sellers Legal Pack for Property Buyers’ Bill 2021 sets out a requirement that a legal pack would be prepared in advance of a property going on the market and contain documents such as contracts for sale, planning documents and architect’s certificate of compliance with planning and building regulations.