Vulture funds and abortive legal costs

[Mary55555]

Hello,

I was hoping if anyone had any experience/ advice of the following.

I was going about buying a house. Did viewings in December 2017 and put offer in , my offer was accepted in December 2017. I paid the booking deposit.. I then agreed fees with my Solictor. I got the engineers reports .. all fine.. got contracts from vendors .. took advice signed and returned contract in the second week of January 18.. all plain sailing ...

7 mths on, after months of “vendor is just about to sign” (a receivership with AIB was the vendor, 14 houses for sale- I was buying 1 of them) I got call earlier this week .. saying all the sales are off..

I heard on grapevine that the 14 houses were sold to vulture fund..

The issue is my costs.. obviously they are a few grand .. what would you do????

I said to my Solictors to issue proposed fee to other side for abortive costs.. he is not keen .... on about contract not binding ( I completely understand this point.. but they held me in limbo for 7 months waiting for signed paperwork.. so all the work was done) I’m like there is nothing to lose here and issue them with invoice ??


Obviously I will pay my solicitor but I don’t think I should .. I think AIB should???

 

[Leo]

Obviously I will pay my solicitor but I don’t think I should .. I think AIB should???

Unfortunately that's one of the risks of property purchasing, the other side can withdraw right up to the point before they sign the contract. I assume they hadn't returned signed contracts to your solicitor? If that's the case, AIB have no obligation to compensate you in any way for your costs, so I'm afraid there's nothing you can do but move on.

 

[Brendan Burgess]

But you are just wasting more money on this.

It's tough. It's very annoying, but you have to pay your bills and move on.

It's unlikely that a vulture fund bought such a small number of houses. I would guess that you were gazumped by a Housing Agency buying them to provide social housing.

Everybody wins. AIB gets to say that they sold repossessed houses to help the homeless. The Housing Agency gets to say it has provided 14 more houses. 14 families get social housing at a knock down rent financed by you and me.The Housing Minister will probably launch the scheme.

When I say "everybody wins" - I mean everybody except the working taxpayer who has saved hard for the deposit to buy a house privately. But they don't count.

Brendan

 

[Mary55555]

Appreciate the insight ... I hear what you are saying ..


I don’t think AIB are acting in an ethical way.. and as a part state owned body they should be held to higher standards..

 

[Bronte]

Appreciate the insight ... I hear what you are saying ..


I don’t think AIB are acting in an ethical way.. and as a part state owned body they should be held to higher standards..

Mary it doesn’t work like that. Ethics have nothing to do with it. AIB has a duty to its shareholders to sell to the highest bidder. Basically you got gazumped.