Purchasing a commercial/residential property in receivership. Difficulty from locals.

I attended an open viewing for a commercial/residential complex that is in receivership. I've made a few attempts to make offers on different distressed properties in recent years but bailed at the last minute due to the demanding T&C's of the contracts. Again this particular viewing was a non runner. I sometimes wonder are these contracts designed to frighten off perspective buyers. Long story short, this development is in a native speaking region. The builder went bust but managed to complete and lease the residential properties on the top floor, however he did not succeed in finishing the ground floor commercial units. Before the estate agent talked us through the building we were made aware of both the draconian mentality of some of the locals as wells as the demands of the contracts from the receivers.

I was approached by a local who was also viewing and asked was I a native speaker. I informed her I wasn't. I was pointedly told that she and other locals were pooling together to purchase the property and turning it into an indoors sports facility and if they were unsuccessful they would contest all planning applications from non local people. Their demands didn't end there:

They'd also want at least two apartments from the complex set aside for local people whereby I or anybody else could not resell the the building as a one lump going concern but could only resell it minus two apartments!

And to top all this off the overall contracts stated that the currant property management company at the complex were to be contracted in indefinitely.

Only in little old Ireland . . .

And we blame the distressed borrower in holding up the repossession process . . .

Well you can turn the tables and contest every application they make if they buy it.

It could be worth trying to get this threat in writing as it could help you if you did buy it.

Brendan

Look, this class of stuff is normal in rural Ireland. Sad but true. Tell the receiver what is going on. Use it to get the price down. Don't sell or give them any apartments. In the long run they will respect you more. Get an injunction if they interfere. That should put manners on. Implement your plans, add value, sell to a local in a few years and get out.

I don't suppose An Gaeltacht is exempt from gambling legislation? Sounds like Tony Ó Soprano and friends have got a venue for the casino.

greeneman said:

Look, this class of stuff is normal in rural Ireland. Sad but true. Tell the receiver what is going on. Use it to get the price down. Don't sell or give them any apartments. In the long run they will respect you more. Get an injunction if they interfere. That should put manners on. Implement your plans, add value, sell to a local in a few years and get out.

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I agree entirely.

Kerrigan said:

...Only in little old Ireland . . ...

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That sort of nonsense should not be tolerated, in little old Ireland or anywhere else in the civilised world.

Infact, I'd go half a step further then greeneman has suggested and threaten to put tenants into the residential units, that the local community would not welcome (if you know what I mean ), if the locals try to become unreasonably involved in your plans.

Depending on the style of commercial property, you could also suggest that you will rent it out to a business hiring out and subsequently cleaning portaloos or similar. Again, not something the local community would much appreciate, I suspect