Builders sue buyers to complete contracts

Brendan Burgess

Brendan Burgess

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Mark Tighe has an article in page 5 of today's Sunday Times. (Anyone able to find a link?) .

Over 100 buyers have been served with writs to complete their contracts.

Laragan Developments account for 40 of these.

Separately, 25 buyers are planning legal action against Laragan to get their deposits back because of the delay in finishing the apartments.

Brendan
 
I wonder have any of the banks who financed Laragan written down/off their debts?
 
Buyer being served is along way from being legally forced to complete. I'd rather be in the buyers situation than the developers, developers are just panicking and hoping some will complete under an idle threat.
 
Maybe the court will agree that the building being late by 1 year is not a 'reasonable delay.'

If they've changed the method of construction would that be grounds for breaking the contract if it's specified in the contract the method of construction is not precast.

Also wonder would Laragan's bank be willing to give the mortgages to the buyers who now do not have mortgage approval.
 
I wonder would any of these purchasers be willing to complete even if the money was available?
 
Meathman99 said:
I wonder would any of these purchasers be willing to complete even if the money was available?
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Do you think these people should complete after being made to wait so long and having their lives put on hold for almost 3 years ?
 
Of course nobody should have to wait that long. Many properties were sold off the plans during the boom. This was acceptable then as the value of the property was increasing. Investers were flipping properties. If this were still the case I doubt too many people would be compaining
 
Meathman99 said:
Of course nobody should have to wait that long. Many properties were sold off the plans during the boom. This was acceptable then as the value of the property was increasing. Investers were flipping properties. If this were still the case I doubt too many people would be compaining
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People are complaining about being strung along for years and having no protection with regards to the contract not the fact that the prices have dropped, not that this probbly helps matters either, but thats not the issue.
 
Meathman99 said:
Of course nobody should have to wait that long. Many properties were sold off the plans during the boom. This was acceptable then as the value of the property was increasing. Investers were flipping properties. If this were still the case I doubt too many people would be compaining
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Not everybody, even investors, thought that buying off plan was a good idea even if property prices were increasing.
 
Senna said:
Buyer being served is along way from being legally forced to complete. I'd rather be in the buyers situation than the developers, developers are just panicking and hoping some will complete under an idle threat.
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I second that. Developers have very big problems.
 
foxylady said:
Nothing they dont deserve IMO
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Just remember that their losses are usually capped by limited liability - a developer can remain personally solvent even if his 'investment vehicle' is possibly insolvent (as a certain developer recently profiled in the New York Times admitted)
 
Would it be fair to say ( all comments welcome) that most of the difficult cases have come through to this stage?

I've asked around lawyer colleagues and what I am hearing is that a lot of developers have either cut their losses and done deals or were fortunate enough to complete before it all hit the fan. Others have been left with property that may not shift but at least there is no disgruntled purchaser left hanging out.

Does anyone know what developers have actually issued proceedings against contractually bound purchasers? I know Laragan have - there is a list of summons on the courts.ie website. Who else has issued proceedings?

Have any purchasers actually issued proceedings to recover deposits where the completion date has passed?

mf
 
I know of none at all coming on at present and have a few developer clients. Any of the equity cases I have are private client-v- private client.
 
mf1 said:
Would it be fair to say ( all comments welcome) that most of the difficult cases have come through to this stage?

I've asked around lawyer colleagues and what I am hearing is that a lot of developers have either cut their losses and done deals or were fortunate enough to complete before it all hit the fan. Others have been left with property that may not shift but at least there is no disgruntled purchaser left hanging out.

Does anyone know what developers have actually issued proceedings against contractually bound purchasers? I know Laragan have - there is a list of summons on the courts.ie website. Who else has issued proceedings?

Have any purchasers actually issued proceedings to recover deposits where the completion date has passed?

mf
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I think there are several purchasers pursuing Laragan for their deposits
 
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