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Buying in unfinished estate and indemnity

  • 28-10-2018 2:57pm
    #1
    shelly24
    Registered Users Posts: 77 ✭✭


    I’m sale agreed on a hosue and had hoped to be in last week and after I signed contracts my solicitor found a problem, the estate is unfinished and she has a draft indemnity from the builder but it’s not signed.
    Has anything like this happened to anyone before? We sold our hosue last week and moved out on Friday so we need this sorted ASAP
    Thanks


Comments

  • #2
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,278 Mod ✭✭✭✭The_Conductor


    Shelly- its staggering that your solicitor has only found this problem this late in the day.
    The draft indemnity from the builder- isn't worth the paper its written on- its not even signed, and even if it were, there would be serious question marks over whether it was enforceable, or not.

    I'm really sorry- you need to prepare for the strong likelihood that you may be withdrawing from the sale- on the basis the seller witheld this bombshell. As such- I imagine your deposit is safe- however- you need to sit down with and go through your options with your solicitor.

    A property in an unfinished estate- is a pig in a poke- which is why they sell at such a discount to other local properties that do not have such strictures associated with them.

    Talk to your solicitor- but be prepared to walk.


  • #3
    shelly24
    Registered Users Posts: 77 ✭✭shelly24


    The_Conductor wrote: »
    Shelly- its staggering that your solicitor has only found this problem this late in the day.
    The draft indemnity from the builder- isn't worth the paper its written on- its not even signed, and even if it were, there would be serious question marks over whether it was enforceable, or not.

    I'm really sorry- you need to prepare for the strong likelihood that you may be withdrawing from the sale- on the basis the seller witheld this bombshell. As such- I imagine your deposit is safe- however- you need to sit down with and go through your options with your solicitor.

    A property in an unfinished estate- is a pig in a poke- which is why they sell at such a discount to other local properties that do not have such strictures associated with them.

    Talk to your solicitor- but be prepared to walk.
    We knew the estate is not finished.
    The builder has planning for more houses at the back of the estate.
    He has a small compound in the estate with some equipment in it too.
    We are okay with that!
    The house is one of the original houses in the estate and went for €60k over asking price because of a massive bidding war... not discounted by any means.
    I’m frustrated my solicitor only noticed the unsigned draft though.
    What does the sellers solicitor need to produce in order for the sale to go ahead?


  • #4
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,278 Mod ✭✭✭✭The_Conductor


    You could potentially go ahead (as-is)- however, it would be remiss of your solicitor not to lay out the implications of this course of action.


  • #5
    shelly24
    Registered Users Posts: 77 ✭✭shelly24


    The_Conductor wrote: »
    You could potentially go ahead (as-is)- however, it would be remiss of your solicitor not to lay out the implications of this course of action.

    She won’t let us until she gets an original bond (I think) that’s signed.
    It’s so frustrating!


  • #6
    godtabh
    Moderators, Science, Health & Environment Moderators Posts: 23,204 Mod ✭✭✭✭godtabh


    shelly24 wrote: »
    She won’t let us until she gets an original bond (I think) that’s signed.
    It’s so frustrating!

    Better for it to be frustrating than jumping into it and regretting it down the road.


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  • #7
    shelly24
    Registered Users Posts: 77 ✭✭shelly24


    godtabh wrote: »
    Better for it to be frustrating than jumping into it and regretting it down the road.

    What could happen with buying in an unfinished estate? As in what could go wrong?
    Is it that the council might not take over the footpaths and stuff after builder leaves?


  • #8
    shelly24
    Registered Users Posts: 77 ✭✭shelly24


    Im confused more now, my solicitor said it’s not the builders bond that’s missing but an indemnity specific to the address of the properly we are buying.
    Does anyone know more about this? When I google all I get is people talking about indemnity insurance


  • #9
    winksblinks
    Registered Users Posts: 51 ✭✭winksblinks


    shelly24 wrote: »
    Im confused more now, my solicitor said it’s not the builders bond that’s missing but an indemnity specific to the address of the properly we are buying.
    Does anyone know more about this? When I google all I get is people talking about indemnity insurance

    Home insurance or mortgage protection? Your solicitor needs to confirm exactly the documentation you need in plain english, really if you are paying them to manage the purchase you should not have to resort to boards to find out what you need. Its an awful lot of extra stress on you.

    People buy new builds in estates that are still under development all the time so the requirements should be well known by someone doing conveyancing.


  • #10
    shelly24
    Registered Users Posts: 77 ✭✭shelly24


    We have mortgage protection and home insurance.

    The paperwork that’s missing is some type of indemnity that the builder is supposed to provide to each house in an estate (that he will finish the estate im thinking).


  • #11
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,278 Mod ✭✭✭✭The_Conductor


    Shelly- you really need to talk to your solicitor to try and determine whether, or not, this is a dealbreaker. If, as you've outlined, its a simple declaration that the estate will be completed- its a safe enough assumption that it will be in the current climate- however, you need to find out the exact details from your solicitor- and you also need to clarify with your lender whether the lack of an indemnity will affect your ability to draw down your mortgage (it might!!!)


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  • #12
    shelly24
    Registered Users Posts: 77 ✭✭shelly24


    The_Conductor wrote: »
    Shelly- you really need to talk to your solicitor to try and determine whether, or not, this is a dealbreaker. If, as you've outlined, its a simple declaration that the estate will be completed- its a safe enough assumption that it will be in the current climate- however, you need to find out the exact details from your solicitor- and you also need to clarify with your lender whether the lack of an indemnity will affect your ability to draw down your mortgage (it might!!!)

    Our mortgage has been drawn down and the solicitors has it in her account.
    I tried twice to phone her yesterday but she didn’t get to me.
    I need this sorted straight away as we sold our house last week and are staying back in Dublin with my mam when kids schools are in Kildare, we thought we’d only be here one or two nights


  • #13
    shelly24
    Registered Users Posts: 77 ✭✭shelly24


    So we sold our hosue nearly 2 weeks ago and signed contracts on the house we are buying before we sold ours.
    There was one clause put in the contract of the house we are buying, there’s a missing document (an indemnity bond from the builder because the esate is unfinished) but we were led to believe that it wasn’t a big deal and wouldn’t delay the sale. She said the only delay would be us drawing down our mortgage.
    Our mortgage has been drawn down and we left our hosue 2 weeks ago, the paperwork has been missing for 3 weeks now with no sign of a resolution.
    We are living with my mam in Dublin and it’s not ideal because kids in school in Kildare.
    My solicitor is not responding now to emails when I ask her for updates and phone calls aren’t being returned.
    Any advice?
    Is it possible that the sale won’t go through? Does that happen ever?


  • #14
    Thestones
    Registered Users Posts: 255 ✭✭Thestones


    First thing first, the mortgage was drawn down two weeks ago, that money needs to be returned to bank if not already done so, it sounds like you have no idea how long this will take. If solicitor is not responding get on to your bank and explain that sale is still not closed, they will be quick enough to get on to them!


  • #15
    spaceHopper
    Registered Users Posts: 3,966 ✭✭✭spaceHopper


    Call the solicitor and tell receptionist that if you don't have a call back in 5 minutes you are getting in to your car and will be in their offices in 20 minutes. From the sound of it you should had not sold your own house till this was fixed.


  • #16
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    Mod Note

    Threads merged


  • #17
    shelly24
    Registered Users Posts: 77 ✭✭shelly24


    We still have no news, my husband has been phoning since 9am, he was told at 9 that she would be in a meeting until 2 so he rang at 2 to be told she went to a meeting at 2 for the rest of the afternoon


  • #18
    amcalester
    Closed Accounts Posts: 4,121 ✭✭✭amcalester


    shelly24 wrote: »
    We still have no news, my husband has been phoning since 9am, he was told at 9 that she would be in a meeting until 2 so he rang at 2 to be told she went to a meeting at 2 for the rest of the afternoon

    I'd be in the solicitors office waiting until I got an answer.


  • #19
    shelly24
    Registered Users Posts: 77 ✭✭shelly24


    He just spoke to her and we are none the wiser, there is an indemnity bond that’s signed by the builder but one digit is missing from the date and there’s no company seal on it.
    I don’t know if every other house in the estate is the same or just ours. Houses have sold recently and there were no issues so I don’t get why we are so stuck.
    She said the bank won’t let us have the money without the indemnity but our mortgage was drawn down last week and is in the solicitors account


  • #20
    winksblinks
    Registered Users Posts: 51 ✭✭winksblinks


    shelly24 wrote: »
    mortgage was drawn down last week and is in the solicitors account

    If a mortgage I was liable to repay was sitting in the account of a solicitor who was not responding to my calls/emails I would be camped out on their doorstep till it was resolved.

    Have you had contact with the builder/site foreman through the build and purchase to clarify matters with them?

    It all sounds like very odd behaviour on the part of your solicitor. Can you contact the Law Society for guidance given that you say the solicitor has the drawn down mortgage in her account?


  • #21
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    Solicitor had to give certain undertakings to the bank in order to get the funds.

    She is obviously not happy with this document. It could be absolutely genuine and the missing digit an oversight.

    If she doesnt know herself, she should be finding out urgently, ie within hours, if this is important and if so how to rectify it.

    Many solicitors seem to have a warped sense of time and urgency, in my experience.

    What is inexcusable is her obvious avoidance of you and her failure to be upfront.


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