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Who's fault - solicitor or bank??

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  • 07-01-2014 2:53pm
    #1
    skmck
    Registered Users Posts: 66 ✭✭


    Hi all,

    I put a deposit down on a house in March 2013. Mortgage was approved & we were issued with the contract from the seller. The bank were giving us the mortgage in two parts as there was quite abit of work to be done - so the first part was drawn down to contribute towards the cost of the house.

    It took until September 2013 to get to this stage & we thought when the mortgage was drawn down everything would be straightforward from here. But then I got a call from my solicitor one day to say that it is his duty to check with the bank to ensure they are satisfied with everything before paying the funds over to the sellers solicitor along with the signed contract. The bank turned around and said that we could not go ahead because they were not provided with the correct documentation that they requested. (The seller was meant to give up a structural warranty & a planning indemnity. The seller instead provided certificates from the engineer & planner to say that everything was in order) These were the documents which our solicitor gave to the bank but they said they needed the warranty & indemnity. (It is important to note that our solicitor said that the certificates would suffice with the bank & that is why he went ahead & drew down the money).

    So as it stands (now January 2014) the bank are now requesting additional information from us to satisfy themselves that it is ok to give us the money. My question is as we have been paying a mortgage since last September - if the bank do not give us the money - can we follow the bank or the solicitor for the monthly repayments which we have been making since last Sept? It's not our fault that there was this mess!

    If anyone could shed some light on this situation, I'd greatly appreciate it!


Comments

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    #2
    Ray Palmer
    Registered Users Posts: 8,355 ✭✭✭Ray Palmer


    Your solicitor seems to be the problem. He drew down money without the full approval of the bank. If you have paid this money you should have got the keys so I am a bit confused in what you are saying. Do you have the keys or not?


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    #3
    GavMan
    Registered Users Posts: 1,913 ✭✭✭GavMan


    Seems strange that a solicitor could do that while documents for the bank were pending.

    I'd focus on getting the documents before blaming people. From what you're saying, it seems the bank will release the money once they have these.


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    #4
    The_Morrigan
    Moderators Posts: 9,368 ✭✭✭The_Morrigan


    OP is this a renovation mortgage?


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    #5
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    If the mortgage is drawn down and you are paying the mortgage whos account is the money in earning interest ?????

    Something very dodgy about this situation very dodgy.


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    #6
    drunkmonkey
    Registered Users Posts: 28,118 ✭✭✭✭drunkmonkey


    Have you a closing date from your solicitor? You need to put serious pressure on them to sort this out asap. I wouldn't be waiting on call backs I'd be on to the solicitor every morning for an update.
    Things can go wrong and you want to make sure the house is 100% and any rights of way and wayleaves are correct and present. I presume you've had the property properly checked out for any possible planning and structural issues etc.
    It took me 4mts from drawdown to keys, things can get dealayed but as long as it's all correct when fully complete that's the main thing, paying a mortage and rent was driving me crazy, basically wasted 2 grand.


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    #7
    wuffly
    Registered Users Posts: 662 ✭✭✭wuffly


    You will only be paying for what you have drawn down. Not sure who is to blame re the delay, is its very difficult to get the required doc's? Its odd that they would have let you drawn down the first half without those doc's the initial error is probably between them the solicitor for not getting the right docs and the bank for accepting the incorrect ones initially. Do have another solicitor that you can talk to about this?


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    #8
    Valentine1
    Registered Users Posts: 434 ✭✭Valentine1


    Something seems amiss here, Firstly following draw down the solicitor is not under any duty to "check with the bank" prior to transfer of funds. Secondly no bank will allow funds to be drawn down unless they have all the documents they require and all these documents will have been set out in the special conditions of the mortgage when you signed it prior to draw down.

    The situation as set out here is exceptionally unusual and does not add up.

    You need to demand a full and thorough explanation from your solicitor straight away. Ask to see all the documentation and correspondence from the Bank (you are entitled to see it) if the Solicitor isn't able to back up their story you'll know there is something going on and should raise the matter with the Law Society immediately.


  • Options
    #9
    Thraxen
    Registered Users Posts: 120 ✭✭Thraxen


    skmck wrote: »
    Hi all,

    I put a deposit down on a house in March 2013. Mortgage was approved & we were issued with the contract from the seller. The bank were giving us the mortgage in two parts as there was quite abit of work to be done - so the first part was drawn down to contribute towards the cost of the house.

    It took until September 2013 to get to this stage & we thought when the mortgage was drawn down everything would be straightforward from here. But then I got a call from my solicitor one day to say that it is his duty to check with the bank to ensure they are satisfied with everything before paying the funds over to the sellers solicitor along with the signed contract. The bank turned around and said that we could not go ahead because they were not provided with the correct documentation that they requested. (The seller was meant to give up a structural warranty & a planning indemnity. The seller instead provided certificates from the engineer & planner to say that everything was in order) These were the documents which our solicitor gave to the bank but they said they needed the warranty & indemnity. (It is important to note that our solicitor said that the certificates would suffice with the bank & that is why he went ahead & drew down the money).

    So as it stands (now January 2014) the bank are now requesting additional information from us to satisfy themselves that it is ok to give us the money. My question is as we have been paying a mortgage since last September - if the bank do not give us the money - can we follow the bank or the solicitor for the monthly repayments which we have been making since last Sept? It's not our fault that there was this mess!

    If anyone could shed some light on this situation, I'd greatly appreciate it!

    The solicitor is the issue. I know the feeling I have dealt with an inept one and regretted it.
    http://www.lawsociety.ie/Pages/Public-Make-a-Complaint-CMS/


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