Property sales in Ireland are being lost because of delays in the conveyancing process, the Institute of Professional Auctioneers and Valuers (Ipav) has claimed.
A survey by the umbrella group found that more than four out of every five agents had experienced sales falling through because of such delays.
Ipav said conveyancy, the legal transfer of properties from seller to buyer, was now taking on average four months to complete – over 10.4 weeks between a sale being agreed to the signing of contracts, plus a further 5.3 weeks between the signing of contracts and the closing of a sale.
Before the crash, it took four to six weeks but the increased number of legal and planning documents now required and the length of time it takes to retrieve these documents has slowed the process down.
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Conveyancy “has become so lethargic that mortgage loan offers are being withdrawn”, Ipav said.
Ipav’s survey of 534 agents indicated that an overwhelming 88 per cent had experienced delays in the conveyancing process. Some 70 per cent indicated the withdrawal of loan offers “occur occasionally” while 26 per cent said it occurred “frequently”.
The majority of respondents said that delays in securing documentation and problems with deeds were the biggest reason for delays occurring.
Problems with communicating with the vendors’ and purchasers’ solicitor were ranked highest by 23 per cent and 14 per cent respectively.
Most respondents said conveyancing times have not improved since Ipav’s first conveyancing survey in 2015 and since moves by the Law Society to speed up the process and described the process as “not at all efficient”.
“Conveyancing delays put extra worry and pressure on purchasers and vendors as well as extra rental costs too in many cases at a time when budgets are very tight,” Pat Davitt, Ipav chief executive, said.
Legislation that would make available vital documents related to the property available to potential buyers upfront thereby speeding up the process is currently before the Dáil.
Mr Davitt said the Sellers Legal Pack for Property Buyers’ Bill 2022, due to reach second stage in Dáil Éireann on October 5th, is designed to address the situation and make the whole process more efficient.
He said the survey found that 97 per cent of Ipav members support the legislation, “because of its clear benefits and the certainty it gives vendors and purchasers”.
“The Sellers Legal Pack involves gathering the critical documents up front prior to a property going on the market. It is currently used very effectively in online and public auction sales for many years,” Mr Davitt said.
He said it front-loads the current conveyancing process rather than beginning it when a property goes sale agreed.
“The Sellers Legal Pack Bill, when enacted, will speed up the entire sales procedure without adding any further costs to the consumer, and it will also help put an end to the practices of gazumping and gazundering,” he said.
