Register of Mortgage and Deeds

D

DJF

Guest
Hi all,

I am looking for some advise on my apartment and mortgage registry.

I purchased the new build apartment in early 2008, for €245,000, the same apartments are now been advertised at €130,000, after the developer has gone into receivership.

The solicitor who dealt with the purchase, has recently contacted me advising that I have never signed the titled deeds required for the register of the mortgage, and has requested I now do so.

I am a bit hesitant to do so, given the considerable drop in value, and was wondering if in essence has the purchase been completed without this process been carried out. Can anyone advise what is the best way to proceed on this matter and if I have any scope to cut my loses and basically hand the apartment back?

In addition to this I am facing extensive costs which I can not afford, as the "new build" apartment is on the first floor of a maisonette and is suffering from rising damp, and the apartments below are also suffering from very severe rising damp.

I understand the the new builds should be covered under the Homebond scheme, but have never received any confirmation of this. However as the developer has now gone into receivership I am led to believe that this voids the Homebond guarantee.

If anyone can offer any advise on the best way forward on this unfortunate situation it would be so greatly appreciated.

Thanks

D
 
First off, sorry for the situation you find yourself in, but...

Sign the mortgage deed so it can be registered - if you don't all you will face is hassle and letters from the solicitor and the bank, and possibly other sanctions. You borrowed the money and you owe it. You are in breach of your agreement with the bank if you don't sign, which won't look well in court. Even more, the court could order that the charge be registered as a charge on the folio anyway, and you'd end up fixed with the costs of the legal action to get that done.

There is no such thing as cutting your losses on a mortgage in Irish law. The basic process is that the bank obtains judgment against you (credit record ruined), then they register a judgment mortgage against the property, get a well charging order, and then go for an order for possession and sale. You loss doesn't end there. You still owe any shortfall between the sale price and the outstanding mortgage, and can be pursued for that money.

As for the rising damp, sorry, but I can't help there - I'm no too up to date on Homebond etc.
 
Thanks for the advice, sounds like you saved me further difficulties.

D
 
The other poster is absolutely spot on when they say that there is no way of cutting your losses by handing the keys back to the bank. If you don't sign the mortgage deed it simply means that the bank will have to bring a different form of court proceedings against you to enter judgment against you in the full amount borrowed+legal costs. Uner the Courts Act interest on such a judgment will run at 8% per annum! Once they obtain a judgment they can then register it as a mortgage on your property (again you will ultimately have to pay the legal costs involved in this too).

So by not signing the Deed you will not be evading the debt, all you will succeed in doing is forcing the bank to use a more complicated Court based procedure to have the debt recognised. And for the pleasure of this you will be liable for the substantial legal costs involved. Far easier just to sign the document that your solicitor has asked you to.
 
j26 said:
Even more, the court could order that the charge be registered as a charge on the folio anyway, .
Click to expand...

It's not clear if the OP actually has title. If he doesn't have title the bank cannot put a charge on it presumably?

It's something to point out as recently in the news we've heard that some banks don't seem to have proper legal title to mortgaged properties.

OP in relation to the rising damp, did an engineer with professional insurance sign off the build as complying with regulations, which it clearly is not, you may be able to take a case against that on the engineer/surveyor/professional. You should ask your solicitor your rights in relation to this and in relation to homebond. If you search on AAM under homebond this issue was discussed at length a while back.
 
Hi Bronte, I do not have the title as far as I am aware.

Regarding the rising damp, I did have a survey and sign off by an engineer, I will look into this and speak with my solicitor.

As the issue is possibility originating from the premise below my own, so it would be interesting to know how this would be addressed.
 
"The solicitor who dealt with the purchase, has recently contacted me advising that I have never signed the titled deeds required for the register of the mortgage, and has requested I now do so."

Steps:

1. Sign Contracts
2. Sign loan offer, solicitor signs undertaking not to release funds until title is secured and borrower has signed mortgage
3. Funds released from bank to solicitor who than pays vendor who then hands over vacant possession and title.
4. Purchaser takes possession. Purchaser should now sign Deeds and should have signed Mortgage Deed earlier.

I don't think OP knows what is missing here but if he handed over the money and got into the apartment, it sure sounds like he has title!

mf
 
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