Booking Deposit Legality Question - McInerney Homes

vonny232

Hey,

I am one of those unlucky people who was supposed to buy a McInerney home last year (Just before they went bust).
I paid the 2K booking deposit to the Estate Agent and then the 10K contract deposit directly to McInerney via my solicitor.

McInerney are now in receivership and I was originally told that the entire 12K total deposit was lost (though there was a chance of buying the property off the receiver somtime in the future).

I spoke to a Girl who was also stung by McInerneys collapse and she told me that her Solicitor had told her that although the 10K was lost, the 2K booking deposit was refundable by the estate agent because it was paid to them and since the build was not completed by the deadline, I can get it back.

I then called my solicitor and she contradicted this by saying that the booking deposit would have been paid to McInerney as well and therefore this was lost too.

Since this is a small glimmer of hope in an otherwise desperate situation, I dont want to give up on this 2K deposit until I am 100% sure I cannot reclaim it.

Has anyone else come across a similar situation, or does someone know the legality of this situation???

Any comments will be well appreciated.

regards

Milk & Honey

There is a case mentioned on this thread which might be of help.

http://www.boards.ie/vbulletin/showthread.php?p=70608139


There is nothing to stop you asking the auctioneer for the deposit bask. If refused you can go to the Small Claims Court at a small cost

vonny232

Thanks for the reply.

I had been told elsewhere that I could try the small claims court.

The thing is, I signed the contract but that contract has become void because the maximum completion date has expired (thus the contract is void and I have legally rescinded it).

I know very little about the laws and legal mechanisms with purchasing a house, especially if the housebuilder goes bust halfway through the purchase and specifically what happens to the booking deposit.

Someone told me that the booking deposit was related to the auctioneers comission and was therefore claimable back by myself (even if the housebuilder goes bust)??

Jarren

The claim cannot exceed €2,000

http://www.citizensinformation.ie/en/justice/courts_system/small_claims_court.html?searchterm=Small%20Claims%20Court

My guess is you should try another solicitor or get free legal advice here

http://www.flac.ie/contact/

Sorry to hear about your trouble,I hope you will this sorted:)

vonny232

Well its handy the max amound you can get from the small claims court is 2000.

I do indeed plan to get another solicitor at some stage, but I have my reasons for not wanting to do this just yet.

I just want to put some feelers out elsewhere (i.e here) to gauge other opinions of whether the Booking deposit is refundable from the Auctioneer in the event that the housebuilder goes bust...

Thanks for the replies so far, but I am still looking for some more confident advice...

mebird

I expect the Auctioneer deducted their fee first ( which was payable by the Developer ), then passed the balance to the Developer. Whatever transpired, the contract that you had was with the Developer and not the Auctioneer... who was the Agent. I would suggest therefore that your hope is only with the Receiver. Not nice.

martin01

We also paid over a total to 12k to Mcinerney. We were lucky to eventually get the 10k refunded. We found out that this 10k was still in McInerney solicitor's a/c, we had a clause in our contract that this was refundable pending the sale of our house. the 2k went directly to McInerney and weren't able to get this back. Haven't heard anything lately on the McInerney situation, have no idea whats happening???

vonny232

Thanks for the reply.

Unfortunately there was a gap of several months between me signing the contract and the bad news emerging.

The 10k contract signing bank draft was sent directly from my solicitor to McInerneys solicitor and I guess that money was gone before it arrived...

I have given up and written off the loss, its a real bummer but had I gone through with the sale, I would have been in around 40k negative equity (a bit of positive spin

Havent heard anything re mcinerney, the site is still derelict.

Though the holding company has been rescued by some rebel shareholders. See savemcinerney.com for more details...

Bigcheeze

The law should be changed so these booking deposits are held in escrow by solicitors rather than handed to developers.

deRanged

martin01 wrote: »

We also paid over a total to 12k to Mcinerney. We were lucky to eventually get the 10k refunded. We found out that this 10k was still in McInerney solicitor's a/c, we had a clause in our contract that this was refundable pending the sale of our house.

thanks, that's very interesting to hear. I'm in a similar position, and still trying to find out any details at all. If I can make any progress I'll post here in case it might help anyone else.

Villa05

To the OP, have you considered this course of action

http://www.independent.ie/national-news/squatter-told-he-can-stay-in-nama-ghost-estate-home-2907066.html

keanerz007

Hello, is there anyone that got any satisfaction in getting your booking deposit money back.
I'm in the same boat as everyone and had left it off when i taught id never get it back.
The other night i was walking and noticed that the duplex i was buying in the Paddocks Waterford is been finished off, I taught tis was funny as ive never been contacted in relation to getting my money back.
I went out yesterday to find out what was going on, met with this foreman and got very little info out of him. Construction company he said he was working for was Seafield Construction( nowhere to be found on the internet/ no phone or anything)
So i said id ring NAMA, got through to a nice guy called Padraig and he got back to be fairly fast and said the only look after the debt, didnt really understand but he put me onto Ian Barrett in KPMG. Rung him and got a call back off a guy saying I wont be getting the money back as Im a default creditor.

How in the name of jesus is that, they owe me money and they took on my debt, its an absolute joke
Im hearing now that its Waterford City Council that the houses are been finished for.
How can the sell a house to someone else that ive a deposit on

Did anyone get any further on the claim

lawred2

keanerz007 wrote: »

Hello, is there anyone that got any satisfaction in getting your booking deposit money back.
I'm in the same boat as everyone and had left it off when i taught id never get it back.
The other night i was walking and noticed that the duplex i was buying in the Paddocks Waterford is been finished off, I taught tis was funny as ive never been contacted in relation to getting my money back.
I went out yesterday to find out what was going on, met with this foreman and got very little info out of him. Construction company he said he was working for was Seafield Construction( nowhere to be found on the internet/ no phone or anything)
So i said id ring NAMA, got through to a nice guy called Padraig and he got back to be fairly fast and said the only look after the debt, didnt really understand but he put me onto Ian Barrett in KPMG. Rung him and got a call back off a guy saying I wont be getting the money back as Im a default creditor.

How in the name of jesus is that, they owe me money and they took on my debt, its an absolute joke
Im hearing now that its Waterford City Council that the houses are been finished for.
How can the sell a house to someone else that ive a deposit on

Did anyone get any further on the claim

You are a creditor of a company that no longer exists.

Whoever subsequently bought their debts or assets is irrelevant sadly.

deRanged

they're starting to move on the houses in Midleton too. There are planning notices up for some of the unfinished sites, and I've seen people in and out of the unfinished houses (one of which I originally was in contract to buy).

I never had any contact from anyone with regards to the booking deposit I had paid on the property, and I'm not hopeful that I can get it back.

L1011

keanerz007 wrote: »

How in the name of jesus is that, they owe me money and they took on my debt, its an absolute joke

Nobody took on your debt - you were an unsecured creditor in a receivership so received nothing and the debt no longer exists.

That someone bought the premises and are finishing it is irrelevant - they aren't under any liability to and won't give you a cent.

lawred2

L1011 wrote: »

Nobody took on your debt - you were an unsecured creditor in a receivership so received nothing and the debt no longer exists.

That someone bought the premises and are finishing it is irrelevant - they aren't under any liability to and won't give you a cent.

sad truth