Mortgages, Lenders & Undertakings

Why certain steps cannot be skipped, no matter how urgent the closing.

Buyers occasionally feel their own solicitor is the obstacle — insisting on a document when everyone else is ready to close. The explanation is almost always the undertaking, and it is worth understanding, because it also explains why that solicitor is protecting you.

Acting for You and for the Bank

Where a purchase is mortgage-funded, the buyer’s solicitor normally also acts for the lender. That is standard practice in Ireland rather than a conflict: the lender needs title investigated on its behalf, its security ensured and its charge registered, and it uses your solicitor rather than instructing a second firm at your expense. The interests are largely aligned — you and the bank both want good title and valid security — and where they diverge, your solicitor must tell you and may have to stop acting for one of you. In practice that is rare, and the arrangement saves buyers considerable money. What it creates is the undertaking: a personal, binding promise from the solicitor to the lender, typically that the title is good and marketable, that the charge will be validly created and registered, and that the funds will be used only as intended. It is given by the individual solicitor, enforceable against them personally, and treated with great seriousness by the profession and the courts. So a solicitor who closes without satisfying a requirement has not merely taken a commercial risk on your behalf — they have exposed themselves personally. No amount of urgency changes that calculation, and you would not want a solicitor for whom it did.

Approval in Principle Is Not a Mortgage

Approval in principle is an indication of what a lender might lend based on information you supplied. It is not a commitment. A formal loan offer is an offer of a specific loan, on specific terms, for a specific property, subject to conditions that must be satisfied before drawdown. The gap between the two is where a great many transactions come unstuck, because the buyer believes they have a mortgage and the seller believes they have a funded buyer. Do not exchange contracts on approval in principle — it puts your deposit at real risk, and it is one of the few genuinely avoidable disasters in conveyancing. Then the conditions themselves, which are among the commonest reasons a closing date moves: life assurance and home insurance in place, a valuation, proof of the balance of the purchase money, and sometimes something specific to the property — planning compliance, a septic tank certificate, works to be completed. Each takes time, several depend on third parties, and lenders have their own internal timelines for releasing funds that nobody can compress. Deal with conditions the week the offer issues, not the week of closing. Finally, after closing your deeds are generally held by or for the lender until the mortgage is redeemed — worth remembering, because retrieving them is the first step when you eventually sell or switch lender.

Loan Offer Issued?

Send it through early. The conditions are what set the timetable, and the ones that depend on third parties are the ones worth starting immediately rather than in the closing week.

Call 01 5827148

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Mortgages & Undertakings - FAQs

Because that is how residential mortgage lending works in Ireland, and it is standard practice rather than a conflict. The lender needs someone to investigate title on its behalf, to ensure its security is valid, and to register its charge, and it uses the buyer’s solicitor to do that rather than instructing a second firm at additional cost to you. The interests of buyer and lender are largely aligned - both want good title and a valid security. Where they diverge, your solicitor must tell you, and in some circumstances must decline to continue acting for one of you. In practice that is rare, and the arrangement saves buyers a great deal of money.

General information, not legal advice. This website contains general information about conveyancing and property law in Ireland. It is not legal advice and does not create a solicitor—client relationship. Every transaction turns on its own facts — the title, the planning position, the lender’s requirements and the contract — and advice on yours requires a consultation.

Nothing here is tax advice. Stamp duty, Local Property Tax, capital gains on a sale, and any gift or inheritance tax arising on a family transfer are matters for your accountant or tax adviser and for Revenue’s own guidance. This firm does not advise on tax and states no rate, threshold, relief or condition anywhere on this site. Where a scheme such as Help to Buy or the First Home Scheme is mentioned, the eligibility rules and limits are set by Revenue and the scheme administrators and change from time to time — confirm the current position directly with them.

No valuation, survey or financial advice. This firm does not value property, does not advise on price, and is not a surveyor, engineer or mortgage adviser. A solicitor’s investigation of title is not a structural survey and is not a substitute for one, and no legal work will tell you whether a property is sound or whether the price is right.

Never both sides of the same transaction. The firm acts for buyers and, in separate transactions, for sellers — but not for both parties to the same sale. Conflicts are checked before any substantive discussion, which is why the first contact should identify the property and every party involved.

No timeline is promised. Nothing on this site states or implies that a transaction will close by any particular date. Closing depends on matters outside any solicitor’s control, including the other side, the lender, the chain, and third parties such as local authorities and Tailte Éireann.

Fees. Fees and outlays are agreed in writing with the client at the outset, in accordance with the Legal Services Regulation Act. In contentious business, a solicitor may not calculate fees or other charges as a percentage or proportion of any award or settlement.