Part of what a Conveyancing Solicitor does when buying property is carry out closing searches on the property in question. You might be wondering about the cost of this and what it is for when you are getting quotes from a Conveyancing Solicitor.
Effectively, your Conveyancing Solicitor must establish that there are no mortgages or judgments outstanding on the property from the day you purchase. So, for instance, he will carry out Judgment and Bankruptcy Searches against the Vendors. If anything shows up on the day of closing it must be dealt with to the satisfaction of your Conveyancing Solicitor. So say there is 50,000 outstanding to a Bank against the Vendor and it has been registered as a judgment mortgage on the property. He owes the money to the Bank on top of say his mortgage. The bank has protected its interest by registering the judgment on his property. The Bank knows that the Vendor cannot sell the property without it being raised by your Conveyancing Solicitor.
In a nutshell the Judgement will only be seen if the Conveyancing Solicitor carries out a legal search. He will use Law Searchers who are fully bonded to do this and give him the results. Now that he knows about the extra money owed your Conveyancing Solicitor will show the results of this searches to the Vendors Solicitor. It has to be dealt with by both parties.
All encumbrances on your new property must be discharged before you take possession otherwise it will be staying on your title and will become your problem. Not very nice is it?
Property Department Healy O’Connor Solicitors Cork and Dublin