Builders Charging Interest

Cannot see situation where prison will be an option, declare yourselves bankrupt maybe ....


are both names on the contract ??
 
Hi crumdub12,

Yes both the names are on contract....how can we go about declaring bankruptcy....we are already telling solicitors on both sides that we have no money....but still they are no listening....
 
Hi Rock786.
Can you tell me the last correspondence from builders solicitors. Was there much correspondence between your solicitor and theirs or just 1 or 2 letters? Did you send them proof from banks that you couldn't get mortgage they were looking for? If its any consolation I am in exactly the same boat. I wake up every morning with a knot in my stomach over this - it is very stressfull. I don't know how long before the solictors on the builders side will say, we are going to take court proceedings against you - or we will release you from contract, but are keeping deposit.!
 
crumdub12 said:
Cannot see situation where prison will be an option, declare yourselves bankrupt maybe ....
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From my recollection of reading the relevant posts on AAM I don't think that one can declare oneself "bankrupt" in the commonly understood meaning of the word, under Irish law (OT: my.....what a convoluted sentence!)

As already laid out by Stifster what happens is the court makes a judgement against you and imposes a repayment schedule - if you fail to meet that they may send the sheriff after you (I think) and / or impose a jail sentence.

What does all that mean? It means you can't just declare yourself bankrupt and walk away from all your debts.
 
Hi dublin13,

We have sent two letters so far and my solicitor has spoken to the builders solicitors couple of times on phone....but they are willing to have no mercy on us.....i really wish that this sector was regulated...

what abt you....have ur builders started charging interest on the pending amount as well......???

Life is like hell these days....i cannot breath freely even for a minute....
 
Rock786 said:
We have sent two letters so far and my solicitor has spoken to the builders solicitors couple of times on phone....but they are willing to have no mercy on us.....i really wish that this sector was regulated...
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No offence but I fail to see what regulation or lack of it has to do with this issue. You (presumably) signed a binding contract, cannot follow through and the other party is simply enforcing their rights under this contract. Obviously it is and upsetting and difficult situation to deal with but it's not the fault of lack of regulation or any lack of consumer protection.
 
Yes
I got a letter saying that because I hadn't closed, that I was being charged something like €70-80 per DAY. Does anybody have any idea how long this could be drawn out for? Is it weeks or months before I know if I will be sued or just my deposit not returned. Also on my contract, it is the legal secretary and not my solicitor who signed with me. I never actually met my solicitor until I arranged an appointment to instruct him to tell the builders I want my deposit back. I wonder if I could use this in my appeal to the builders. Any ideas anybody? Thanks
 
Hi dublin 13,

may be politicians or media can play a role in situations of people like us.....
 
Why should elected representatives have anything to do with a situation in which one party to a private contract reneges on the deal?
 
Rock

You have asked a question.
You have got some answers.

It is not the place for discussing the pros and cons of regulation, etc.

Brendan
 
Maybe some media attention wouldn't do any harm. Sounds like the builder is playing hard ball so might not help you but it might help warn others about the consequences of entering into these contracts especially in the current market.

As much as I hate suggesting this. Maybe Joe Duffy could be the man!

Any chance of being allowed to flip the contract and trying to find someone take over the obligation. Might be difficult in this market but might be worth a shot?
 
Contracts are there to protect both parties. If your partner had not lost their job and the market was still going up and the builder tried to pull out of the deal I am sure you would not just let it go.
I have huge sympathy for you, you are in a very difficult position but there is no moral stance to be taken. You need to get this resolved as soon as you can as the longer it takes the more it will cost you. Since you are the party that it in breach of the contract the builder could be well within his rights to go after you for costs as well.
This as a business/ legal issue, look at it from the perspective of how you can extract yourself from the contract with the minimum cost (but there will be a cost).
 
Public representatives most certainly can and should be used re this situation. I appreciate that binding contract is legally bound. However, and I am not talking about situations where people want to renage on contract just because they change their mind. I am talking about a situation where financial circumstances change and NO financial institution will give you mortgage. Also, I was definately not legally advised re the consequences if I couldn't draw down mortgage. Life happens, it's not cut and dried - and that's where public representatation comes in.
 

I can't believe that you were let sign a contract without loan approval or at the very least a letter of offer.

Raise that point with your solicitor, though saying "I was definately not legally advised re the consequences if I couldn't draw down mortgage" does beg the question what would the common sense advice be in such circumstances.

Do you ahve any correspondence from around the time you signed the contract?
 
Hi Stifster

Thanks. No unfortunately, I have no other correspondence. I ran into the solicitors office - met the legal secretary - (as I have said I had never met the actual solicitor). I signed the contract and was very happy to do so. But she did verbally tell me to get the mortgage approval letter in principal. I didn't because I wouldn't have gotton the mortgage I was looking for on my salary at that time. To cut a long story short, a promotion, bonus, etc I was depending on did not happen. In hindsight I realise I was a completely stupid and foolish to sign now that I am aware of the consequences, but that's my only mistake. I would now be willing to say goodbye to my 8,000 deposit (which is a huge amount of money to me) - just for peace of mind re not being taken to court and sued. As I have said, I understand the logical, legal perspective, but we are dealing with people - and things just don't go according to plan sometime.
 
Purple said:
Contracts are there to protect both parties. If your partner had not lost their job and the market was still going up and the builder tried to pull out of the deal I am sure you would not just let it go.
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I agree but I wonder what would the response be if the builder was suddenly not in a position to complete the contract due to financial problems but offered the OP back their deposit. Would the solicitors and other people on this site recommend that the OP takes a completion order against them and bring them to court even if the builder turns around and says we are in no position to complete the contract. Or would you just say, take the deposit back and put it down to experience? Which is probably what the builder should do in this case
 
"I signed the contract and was very happy to do so. But she did verbally tell me to get the mortgage approval letter in principal. I didn't because I wouldn't have gotton the mortgage I was looking for on my salary at that time. To cut a long story short, a promotion, bonus, etc I was depending on did not happen. In hindsight I realise I was a completely stupid and foolish to sign now that I am aware of the consequences, but that's my only mistake. "

At least you are being completely honest which is worth (some) respect. And a few minutes of my time.

I've just had a very nice lunch (hic!) with an old friend who is a Builder's solicitor. She has a lot of similar cases on her desk. Her advice to her client is (a) what his legal rights are (b) in reality, what it will cost to get an order enforcing the contract which may never end in completion and the handing over of closing funds. Her instructions? Take the deposit in every case. Selectively go through the excuses being offered ( many bogus and many, in fairness, reflecting difficulties in getting finance) and seek to complete where possible. Where it is patently never going to complete, keep the file open. If there is an upturn, maybe, maybe, allow the purchaser out.

And can I ask the question? Do people think solicitors are like Guardian Angels - armed with a Magic Wand to prevent bad things ever happening to people? Or do they think they are simply advisers, like accountants, where ultimately clients must make their own decisions?
Do people think ( and it often happens on this Board) that solicitors are responsible for digging clients out of holes of their own making at no cost to the client? I get a huge sense of : I'm an adult, I don't like the situation I'm in, I want out of the situation, who can I blame?

mf
 

I don't think anyone is having a go at the solicitors in this situation. Maybe you a bit over sensitive or 'emotional' after the nice lunch?
 
Sunny said:
I don't think anyone is having a go at the solicitors in this situation. Maybe you a bit over sensitive or 'emotional' after the nice lunch?
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Ah no - hic. Its more of a general observation although there are a few nice instances in this thread.

"but i would get a better solicitor first"

"Also on my contract, it is the legal secretary and not my solicitor who signed with me. I never actually met my solicitor until I arranged an appointment to instruct him to tell the builders I want my deposit back. I wonder if I could use this in my appeal to the builders."

"Also, I was definately not legally advised re the consequences if I couldn't draw down mortgage."

mf
 
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