According to a survey conducted by the Institute of Professional Auctioneers and Valuers (IPAV), 84% of real estate agents believe that house sales are falling through due to the lengthy conveyancing process. Conveyancing, the transfer of property deeds from sellers to buyers, currently takes an average of four months to complete. This poses a problem as most mortgage offers are only valid for six months.
Furthermore, those who miss out on mortgage offers are faced with the arduous task of reapplying, which is especially challenging considering the rising interest rates. In the past six months alone, the European Central Bank has raised rates by nearly two percentage points. The IPAV survey also revealed that almost all (88%) of their members have experienced delays in the conveyancing process, while 30% of agents reported frequent or very frequent withdrawal of loan offers.
The majority (62%) of respondents expressed dissatisfaction with the efficiency of the current conveyancing process. Furthermore, 86% stated that conveyancing times have not improved since IPAV’s first survey in 2015. The main reasons cited for the delays are difficulties in securing documents and problems with deeds.
Real estate agents also highlighted challenges in communicating with vendors’ and purchasers’ solicitors, which further compounds the delays. Pat Davitt, the chief executive of IPAV, expressed concern over the additional worry, pressure, and rental costs that conveyancing delays impose on purchasers and vendors, especially during financially challenging times.
In 2019, the Law Society proposed the ‘pre-contract investigation of title’ (PCIT) system, which aimed to expedite the buying and selling process by resolving any issues related to the property’s title before signing contracts. However, 75% of IPAV members surveyed believe that this system has not improved the situation.
Mr. Davitt believes that better solutions are needed, such as the Sellers Legal Pack for Property Buyers’ Bill 2022 currently being considered by the Oireachtas. He asserts that this proposed legislation would speed up the sales procedure without adding any additional costs for consumers.
Overall, there is a clear need for reforms to streamline the conveyancing process, reduce delays, and provide a more efficient system for buying and selling properties in Ireland.
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