# Family Home Protection Act 1976 Section 3



## miselemeas (25 May 2008)

A family member's partner has some investment properties. The family home is paid for.  A document from the bank regarding a lower mortgage rate on the investments  has been presented to her for signature, containing a clause that she has read and understood the Family Home Protection Act 1976 Section 3. 

I have looked it up for her and found it at http://www.irishstatutebook.ie/1976/en/act/pub/0027/sec0002.html#zza27y1976s2 but unfortunately neither of us can understand it.

_Is there anybody out there who can explain this in ordinary everyday language please - the main concern seems to be the reference to the "family home" and if this would be affected by the agreement being signed. _


----------



## eileen alana (25 May 2008)

The aim of the Family Home Protection Act, 1976 Act is as it implies is  provide for the protection of the family home.  The bank should ensure that your friend fully understands the document that she has to sign. Basically, if her partner defaults on the loans of the investments properties, the family home will be at risk, hense the need for your friend to give her consent for this to occur.


----------



## eileen alana (25 May 2008)

Th link you gave is Section 2 of the Act which merely defines what a family home is. 
*Section 3 of the Act, (as amended by section 54 of Family Law Act 1995) *
"_Provides that where a spouse, without the_ prior consent in writing of the _other spouse, purports to convoy any interest in the family home to any person except the other spouse then, subject to stated exceptions, the purported conveyance shall be void.  A conveyance shall not be deemed void until so declared by a court." Nester's Family Law_

You should encourage your friend to seek independent legal advice before she signs her signature to this document.  If she signs and her partner runs into financial difficulty with the investment properties she would be at risk of losing her home.  Under the terms of The Family Home Protection Act, she will not lose her home if she refuses to sign this document.


----------



## Pulped (26 May 2008)

Are the mortgages on the investment properties secured on the family home? If not then section 3 wouldn't apply and it's not something that needs to be worried about. Also, you describe them as being partners, are they married or are they just in a long term relationship? If that's the case then then Act does not apply as they don't count as a legal family.

Eileen Alana is right that the home won't be at risk if she doesn't sign but presumably the bank would also refuse to extend the lower rates if her consent is not forthcoming.


----------



## miselemeas (26 May 2008)

Thanks a mill for explanation - will pass it on


----------



## murphaph (26 May 2008)

Pulped said:


> Are the mortgages on the investment properties secured on the family home?


I'm sure that in the event of default that the bank can go after all your assets. I think I've read it on here in fact that it matters not a jot which property the mortgage is actually secured on as the debt(s) are yours, not your properties'. Perhaps someone can clarify.


----------



## dazza21ie (26 May 2008)

murphaph said:


> I'm sure that in the event of default that the bank can go after all your assets. I think I've read it on here in fact that it matters not a jot which property the mortgage is actually secured on as the debt(s) are yours, not your properties'. Perhaps someone can clarify.


 
The mortgage secures the banks loan against the mortgaged property, however, should you default in repaying the loan and the bank move in and sell the property but this is not enough to clear the loan then in this scenario they can come after any other property you own just like any other creditor.


----------

