Mortgage drawn down 6 weeks ago, sale not closed yet.

Hi Everyone,

Last year we have applied for a mortgage and decided to buy a new house from a developer. We have signed the contract, paid the deposit.

The house has been finished in December, so the developer has given all the papers required by NAMA to provide it's consent for transaction. On my side the solicitor has applied for mortgage to be drawn down. As everything was fine with the transaction up to this point the bank has transferred the funds to solicitor customer's account.

Since then (6 weeks now) NAMA hasn't responded to multiple requests to update what's going on with the consent. As the money has been drawn down, the first installment has been paid by us.

Just a question in relation to draw down. What are the procedures - is my case valid - the money has been transferred even though not all documents has been prepared to close the sale?

Is the solicitor making money on the funds sitting on his customer account? If so, would it be valid to ask him for discount for the services as he made few euros by holding a large amount of money for 6 weeks (and possible week or two more)?

Regards,

karrr said:

Just a question in relation to draw down. What are the procedures - is my case valid - the money has been transferred even though not all documents has been prepared to close the sale?

Is the solicitor making money on the funds sitting on his customer account? If so, would it be valid to ask him for discount for the services as he made few euros by holding a large amount of money for 6 weeks (and possible week or two more)?

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The money has not been transferred to NAMA so it is correct that the money stays in the solicitors client account. You are entitled to interest, but I doubt if it's in an interest bearing account, even if it is it's probably a minimum amount. Odd that the transfer didn't go ahead, but we are talking about NAMA, six weeks is a very long time in this situation, I wonder if they are unable to close. I do seem to remember Nama in the press stating they were making quick decisions, but in your case they are not even corresponding. What does your solicitor say?

The solicitor, builder, sale agent - virtually everyone is saying that NAMA is sitting on a pile of documents waiting to be signed off and as they are understaffed - the process moved very very slowly.
The problem is that I am hearing this every week and nothing moves forward. It's getting really frustrating.
I was wondering if this can be somehow escalated?

Bronte said:

The money has not been transferred to NAMA so it is correct that the money stays in the solicitors client account. You are entitled to interest, but I doubt if it's in an interest bearing account, even if it is it's probably a minimum amount.

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The client money stays in a totally separate account. Rabo are the only bank that do interest on business accounts and due to their lack of accepting cheques, I can't see them being used by solicitors.