Judge rules against buyer over €525,000 apartment - The Irish Times - Thu, Mar 04, 2010
What are the ramifications of this decision? Must everybody who place a deposit on a house now complete the deal or was there a special arrangement in this circumstance?
"Judge Linnane granted the company judgment for €505,000 and ordered costs against Ms O’Kennedy"
What exactly does this mean? Does the woman now have to buy the apartment? What if she cannot raise that mortgage now?
Interesting.
is the converse equally true? Can a seller, who walks away from a sale of a property, with the buyer having placed a deposit in good faith, possibly invested legal, valuation and other costs, be forced to sell the property. Or at least pursued for recoupment of said costs?
It most be a bummer trying to get a mortgage for €500k for a property worth €300k!
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Hard to say without knowing the contract details. Many contracts state by a certain date you can back out, with loss of deposit but after that date you are obligated to buy. Sounds like that may be the case here. All I can say is that Ireland had better reform its credit and mortgage laws or else the courts will be back logged with these silly delays for years and the property market will take twice as long to heal.Originally Posted by Fir Bolg
Yikes!
Hand the keys back to the bank. It would be cheaper and easier to spend a year or two in jail than stump up the extra 200k+interest !!
Of course defaulting on an agreement does have repurcussions...
All in all a dreadful situation to find yourself in. Sickening really.
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It is a bummer, and I think the thing that will really sting people is the memory of vendors agreeing a fee, taking the deposit and then cancelling when a better offer came along during the good times.
That being said, this is contract law 101 in most cases, and going to court was never going to be successful. You're liable for the terms you signed up to.
Or pehaps reform its bankruptcy laws. We have never had such a credit binge in the State as we had in the early,mid-2000s and our bankruptcy laws belong to the 18th century. People need a quick and easy way to become bankrupt if they have no assets left and owe money, or to have the equivalent of the UK Individual Voluntary Arrangement if they owe a lot but have very little assets. Bankruptcy should lose its stigma though perhaps not attracting a badge of honour as in the US.
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NAMA designed to be to property what the CAP was to agriculture - difference, food production is essential.
I can't understand this decision.
How on earth is the buyer going to get a mortgage for a property that is worth 60% of the agreed sale price?!
Unenthusiastic about any of the buggers.
[QUOTE=Fir Bolg;2497995]Judge rules against buyer over €525,000 apartment - The Irish Times - Thu, Mar 04, 2010
What are the ramifications of this decision? Must everybody who place a deposit on a house now complete the deal or was there a special arrangement in this circumstance?
[QUOTE]
Pre-contract deposits are refundable, if one decides to pull out before signing a contract. Once a contract is signed, that's it. Both parties are liable to perform as agreed in the contract.
Inthemire wonders "if the converse is true?". The converse would be where the value of the property post-contract had risen, and the developer reneged on the contract, to try to sell it at a higher price. In such an instance, the purchaser would have a cast-iron legal case against the developer.
"All employment is outright robbery" says Cael, the voice of reason
There's no chance of getting the mortgage, so I really don't know what Ronan's Treasury Holdings are playing at. Maybe someone could enlighten me?How on earth is the buyer going to get a mortgage for a property that is worth 60% of the agreed sale price?!
Lovely that the little guy/gal is (essentially) screwed while 'Big' Johnny can set aside his own loan obligations into NAMA and continue business as usual.
"No more banana republic here. I think it is ridiculous how little information we get about what is being done do improve the situation," - Astridur Halldorsdottir
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Sound familiar?
Of course it does! It's Ireland under Fianna Fail - The Soldiers of Bankruptcy.
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