What is a Deed of Assignment when buying property in Ireland?

Question:

What is a Deed of Assignment in the context of buying a home in Ireland?

Answer:

A Deed of Assignment is a legal document that plays a crucial role in the mortgage process when buying property in Ireland. It is typically required as part of the conditions of your loan offer, particularly if you are taking out life or mortgage protection insurance.

This document transfers (or "assigns") the benefit of your life or mortgage insurance policy to your lender. In practical terms, it ensures that if something were to happen to you—such as an untimely death—the proceeds of the policy would be paid directly to the lender. This amount would be sufficient to cover the outstanding balance on your mortgage, effectively redeeming the loan and protecting your loved ones from financial burden.

Key aspects of a Deed of Assignment include:

Mandatory for Most Mortgages: Except in rare circumstances, lenders require to take out life insurance or mortgage insurance as a condition of your loan agreement.

Protects the Lender: Provides the lender with security that the mortgage will be repaid in full in the event of your passing.

Peace of Mind for Buyers: Ensures your family or estate will not be burdened with mortgage debt after your death.

Facilitated by Your Solicitor: Your solicitor will help you draft and execute the Deed of Assignment as part of the overall property purchase process.

The Deed of Assignment is an important part of the legal and financial process of home-buying in Ireland, offering protection to both you and your lender. If you have questions about this or other legal steps involved in purchasing a property, Beam will guide you. Please contact us at 01 525 9020 or email us at info@letsbeam.ie .