Sounds to dodgy to be a decent buy

[Joe Bloggs]

Hi,

Maybe I can poll you for views on the purchase of a new apartment in a small S. County Dublin development ( less than 6 apt's in a mixed retail/residential single building) which a friend of mine is a little unsure about.

Just before Christmas last year they viewed a new apartment, seemed relatively good value for the size and location, and the floors/kitchens/tiling was all finished. 3 days after viewing a bid was accepted and a deposit cheque dropped at the auctioneers office.
When the contracts, eventually - 6 weeks later, arrived, my friends solicitor pointed out some problems in the contract:

• No homebond certification
• No Management Company
• Contract clause stating that insurance only covers for rebuild if the cause of the damage did not originate in any of the residential apt's
• Contract clause stating that if owner of building is not in a position to rebuild then it is their right no to rebuild.

My friend attempted over the next 3 months to have the owner/owners solicitor/auctioneer alter the insurance clause in order to have cover that included their own apt., common areas, and all other apt's. Also the owner and owners representatives were pushed to set up a management company as my friend had been told by everyone he knows including several solicitors that a mgt. co. is essential and steer clear if there's no management co.
Obviously if an incident occured in someone elses apt. which required a rebuild/building work to be carried out then insurance cover should be in place for such a case.
The solicitors representing respectively the vendor and my friend did not seem to be having much communication between them. My friend eventually requested his deposit back and pulled out of the sale.
Roll on 5 weeks ago, the auctioneer contacts my friend again to inform him that the apt. block owner is putting in place a management co. which will have responsibility for the insurance of the entire residential portion of the building, perhaps it's the eventual management agency which takes responsibility ? So, my friend goes back with the deposit again.
Still there is no commuication from the vendor solicitors, 5 weeks later.

We are talking now about over 6 months since the apt. went sale agreed, my mate feels like they are getting into the same rigmarole again and the whole thing smells a bit fishy,

• why was he contacted again by the auctioneer instead of the apt. being placed on the open market. The auctioneer has other apt's on myhome.ie but not these apt's, none of the other apt's appear to be sold
• Wasn't the whole initial insurance clause thing very dodgy, if not downright illegal ?, surely the vendors solicitor must have realised that these clauses would be spotted by someone.
• Why no Homebond certificate ?
• Why no Management company ?

To me it all smacks of dodge city, even though the apt's seem decent enough and they're in a good location.

Any thoughts/views appreciated..........

Joe.
Ps. Sorry about the length.